- Royal Helium Ltd. (RHC) has received the results from a comprehensive simulation study for multistage hydraulically fractured horizontal wells
- Hydraulic fracturing is a well-stimulation technique increasing the flow of oil and gas
- Over 600 simulations were run using data from the company’s operations in the Climax-4 well
- Production well designs are being evaluated for mass deliver and quick payback which will be finalized by the end of this year
- Given the large extent of the Nazare area, multiple wells will be considered
- Royal Helium Ltd. (RHC) is up 4.35 per cent trading at $0.36 as of 12:54 p.m. ET
Royal Helium (RHC) has received the results from a comprehensive simulation study for multistage hydraulically fractured horizontal wells.
According to the U.S. Geological Survey, hydraulic fracturing is a well-stimulation technique normally used for rocks like tight sandstone, shale, and some coal beds. This method increases the flow of oil and gas to a well from petroleum-bearing structures.
Royal Helium stated that more than 600 simulations were run using data from its operations in the Climax-4 well.
“The question of whether the Nazare will be a producible reservoir has now been answered and we will move aggressively towards the first production well and further, will make plans toward exploiting the whole reservoir,” Andrew Davidson, President and CEO of Royal Helium, said.
The company shared it is evaluating a few possible production well models in order to pick a design that will allow a mass delivery with the quickest payback period. Given the large extent of the Nazare area, multiple wells will be considered.
Royal Helium is expecting completion of the well design and drilling of the first Nazare well by the end of this year.
“The development of a large scale unconventional primary helium reservoir is a first for Saskatchewan, and perhaps the world… after the first horizontal into Nazare, we will plan to strategically exploit Nazare to its fullest extent,” John Styles, lead engineer for Royal Helium, said.
The simulation study analyzed several factors that could yield a simulation result with a forecast initial production rate above one million standard cubic feet per day for as long as possible. The study was completed by Dr. Gary Zhao of Petroleum Systems Engineering at the University of Regina.
Royal Helium Ltd. (RHC) is up 4.35 per cent trading at $0.36 as of 12:54 p.m. ET.