Imperial Helium Corp. announced confirmation of raw gas deliverability of 10-15 MMcf/d from first two wells, IHC-Steveville-2 (10-22-020-12W4) and IHC-Steveville-3 (12-12-020-12W4). As outlined in previous releases, IHC is planning to construct a production facility at Steveville that is capable of processing a combined 10-15 MMcf/d of raw gas from these two wells.

This gas rate is supported by production test results from the Blow-out Zone in IHC-Steveville-2, which had rates of 5-8 MMcf/d, and in IHC-Steveville-3, preliminary deliverability estimates from the BOZ combined with production test analysis of the new Sub-Salt Zone of 2.5 MMcf/d. Collectively, the results to date indicate that IHC has deliverability capacity of 10-15 MMcf/d of raw gas for more than three years before experiencing a 15% per year decline over an estimated 10-15 years. The production test of the BOZ currently underway in IHC-Steveville-3 is designed to confirm production capability from primary reservoir across the Steveville structure. The results of BOZ production at IHC-Steveville-2 confirmed that well as first potentially commercial production well.

Comparison of well logs between IHC-Steveville-2 and IHC-Steveville-3 demonstrates the continuity of the BOZ thickness and reservoir properties between these wells. Highlight results from the first three days of production testing of the BOZ in IHC-Steveville-3 show: An immediate strong gas flow to surface upon perforating 9m of pay in the BOZ. Helium concentration of 0.44% and overall gas composition is the same as the gas composition in the BOZ at IHC-Steveville-2, indicating the BOZ reservoir is in communication between both wells.

An initial 2-hour clean-up period with sustained pressure and flow estimated at 5 MMcf/d. A second 5.5-hour clean-up period, after acid stimulation, with sustained pressure and flow estimated at 8 MMcf/d. Increasing pressure after gas flow was restricted to 2 MMcf/d using a ¼ inch choke for the first of two restricted flow periods. Pressures are being recorded at the surface and beside the reservoir. Pressure-transient (“PT”) analysis will be used to determine reservoir properties and model production capacity.

In the second six-day period, gas flow will be set at 6 MMcf/d to confirm productive capacity of 5-8 MMcf/d as previously modelled using PT analysis from the BOZ at IHC-Steveville-2. Due to the high quality of the BOZ reservoir, IHC is conducting an Interference Test between the IHC-Steveville-2 and IHC-Steveville-3 wells by placing pressure recorders in both wells during the multi-point restricted-flow production test in IHC-Steveville-3. This interference test will determine if there is pressure communication in BOZ between the wells over a distance of 4.2kms. After the two restricted flow periods, IHC-Steveville-3 will be shut-in for approximately 24 days to observe the pressure response of the reservoir as it returns to equilibrium.