Posted by Aidi Munoz
at 10:57 AM on Tuesday, October 17th, 2023
If you have been following the great space race over the last 2 years, including India landing on the moon and SpaceX’s Falcon Heavy launching a $1 billion asteroid mission for NASA just this morning, then you’re going to love this interview with Royal Helium ($RHC / $RHCCF) given the fact that rocket launch activity in 2022 set an all-time record – and 2023 is set for another record with even more companies launching from Florida, Virginia, Alaska and California.
WHAT ARE ROCKET LAUNCHES IMPORTANT TO ROYAL HELIUM?
$RHC has secured three-year purchase commitments from two top players in the aerospace and space launch industries at an average of CAD $730 /mcf. While the names of the customers withheld by $RHC, think NASA, SpaceX, or Blue Origin. Why? Because helium is essential for space launches, and the demand is sky-high (pun intended).
THE BUZZ – ROYAL HELIUM PLANT CAPACITY ALREADY SOLD OUT
Royal Helium has successfully completed the commissioning of the Steveville Helium Purification Facility, the largest of its kind in Canada. This state-of-the-art facility will produce the highest quality helium in the country, and it’s ready to roll.
With the plant start-up now in full motion, Royal Helium is ramping up towards full commercial production, making Royal the first publicly listed helium producer operating in Canada.
With nearly 80% profit margins and production from the plant already 100% sold out to the aerospace customers, Royal Helium is poised to soar as a key supplier in a rapidly growing market.
NEXT STEPS – RINSE AND REPEAT TO BRING MORE HELIUM TO MARKET
With full commercial production expected to commence “in a matter of weeks, not months” Royal Helium already has its sights set on repeating the process of generating more helium wells to feed more helium plants to supply more large customers that are in need of short supply helium.
Specifically, beyond aerospace and rocket launches, other applications such as healthcare and semiconductors are driving both the demand and price of helium even higher.
STEVEVILLE HELIUM PURIFICATION PLANT HIGHLIGHTS:
Fed By Two 100% Owned Helium Wells
Built To Recover 99.999%
Engineered To Process 15,000 Mcf/Day Of Raw Gas
Production Capacity Of Approximately 22,000 Mcf Of 99.999% Helium Per Year
Ultra-Low Operating Costs Due To Self-Powered Gas Co-Produced From The Two Helium Wells
Additional Benefits
Carbon Credits, Generated Under Tier System In Alberta
Credits Are Monetized Providing Additional Cash Flow Stream
Sit back, relax and watch this powerful interview with Andrew Davidson
President and CEO of Royal Helium Ltd.
Tags: #Helium, RoyalHelium Posted in AGORACOM Via Satellite, Royal Helium | Comments Off on VIDEO – Royal Helium Set To Begin Delivering Helium To Aerospace and Space Launch Clients With Plant Capacity 100% Sold Out
Posted by AGORACOM
at 8:47 AM on Tuesday, April 6th, 2021
Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) is pleased to announce that initial gas sample test results have returned elevated and economic levels of helium concentration from multiple formations at the Climax helium project, with tests returning levels ranging from 0.33% to 0.94% from the Deadwood, Souris River and Duperow formations. The company will now commence long term production testing of the most prospective zones to confirm flow rates and ultimately resource size.
The high graded production zones that are being tested range in thickness from five meters to in excess of 30 meters, with the ability to expand to even larger intersections. While these results are preliminary in nature and require additional confirmation, they do confirm the presence of economic helium grades on the Climax project, along with indicating that nitrogen will be the primary gas drive, though elevated levels of carbon dioxide are also present in certain tests. To date, testing has been focused on testing helium concentrations across the prospective zones with the highest level of helium detected during the drilling process. This initial concentration testing at Climax is expected to be completed over the next 10 days, following which the Royal will begin full flow testing and analysis which is expected to take an additional 30- 40 days.
Andrew Davidson, President and CEO of Royal comments “We are pleased with these initial results on our Climax helium project. Helium detection during drilling identified multiple zones of elevated helium in all three of the wells and follow-up completions testing confirmed economic helium concentrations. We look forward to the full flow testing results across all zones of interest in each of the three wells to confirm resource size and project commerciality. The fact that we have identified elevated and economic helium concentrations across significant pay zones as large as 30 meters speaks to the potential of the Climax Project.”
Posted by AGORACOM-JC
at 4:14 PM on Monday, March 29th, 2021
If you think about balloons / blimps when thinking about Helium uses, we wouldn’t blame you … but you’d also be missing out on a much much bigger picture.
Looking beyond just balloons, Helium is a high tech gas, with many uses in rocket engines, semiconductors, electronics, and health care. These sectors pressure the demand for helium in concert, making it a gas in very short supply. Prices have been rising due to a shortage in supply.
Saskatchewan is one of the only places on earth with current and past production of primary Helium. This is where Royal Helium comes into play as they are one of the largest land holders searching for Helium and have already drilled 3 holes at their Climax project.
Worldwide usable Helium is in short supply as demand is increasing, making it a high-priced commodity, take a seat and discover why Royal Helium is the next SmallCap Stock to discover.
Posted by AGORACOM
at 9:58 AM on Wednesday, March 3rd, 2021
Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) announces that it has engaged two service rigs and that the completions and testing program has been initiated at Climax-1 and Climax-2. The finalized testing program, which was developed in concert with Sproul Associates Ltd., involves the sequential perforation and gas flow testing of several separate intervals identified during drilling. Finalized results from the testing program will be reported as the information becomes available.
Royal further announces that the Climax-3 helium well has been drilled to its target depth of 2,600 metres. Royal’s completion team is reviewing the log data at Climax-3 to determine the intervals to be production tested. The completion and testing program at Climax-3 will commence once testing is complete on Climax-2.
Andrew Davidson, President and CEO of Royal comments, “We are pleased to have our initial 3 wells at Climax drilled to target depth and we are excited to be production testing these high value targets. We want to thank the team from Savanna 419 for their diligent work in completing this drilling program safely and effectively”.
Mr. Davidson continues “With 2 service rigs operating we anticipate the testing to be completed on all 3 wells over the next few weeks. While any significant developments will be announced as they are received, all results will be evaluated by Sproule for a potential helium resource and production over multiple separate zones within this large structural closure”.
The three Climax wells were drilled into the Precambrian basement, directly below the Deadwood Formation. The Deadwood is a sand and shale sequence that is a known helium production zone in Saskatchewan. These first three wells are targeting different parts of the same large structural trap identified on the central portion of the Climax land block.
Posted by AGORACOM
at 10:02 AM on Monday, March 1st, 2021
WHY ROYAL HELIUM?
Worldwide usable Helium is in short supply as demand is increasing, making it a high-priced commodity
Royal Helium has aims to deliver a minimum of 1 trillion cubic feet (Tcf) of total inert gas into the market
Via exploration and development drilling of Helium resources in southern Saskatchewan.
Highlights:
Strategy of full-cycle inert gas capture, refining and liquefaction
Commenced 3 Well Drill Program at Climax:
Production testing of 70m of potential helium bearing intervals for CLIMAX-1
Production testing of 68m of intervals for CLIMAX-2
Currently drilling CLIMAX-3
Royal Helium will be producing: helium, nitrogen and some CO2
Saskatchewan is one of the only places on earth with current and past production of primary Helium
Helium:
Scarce: Dwindling supply combined with growing demand
Helium prices have been rising due to a shortage of supply
Technical Partners:
Saskatchewan Research Council (“SRC”): Conducting engineering and scoping study for a large-scale industrial gas polygeneration facility located in Saskatchewan with RHC
AXIOM Group: Specialize in Energy Services, Geomatics, Exploration, Environment
SPROULE Associates Ltd: consulting on the completions and testing programs and to prepare an independent evaluation of the prospective helium resource from the first three wells at Climax, in accordance with the classification, definitions and guidelines of NI 51-101.
Helium Uses:
Helium
Helium is a non-substitutable and non-renewable commodity needed in many high-tech and health care industries, with specific applications in rocket engines, semiconductors, electronics, and health care.
As these sectors continue to expand, the demand for helium expands in concert.
High value and increasing Helium price
Large and growing demand Decreasing supply
Non-substitutable
Royal Helium
Strategy of full-cycle inert gas capture, refining and liquefaction
Commenced 3 Well Drill Program at Climax:
Production testing of 70m for CLIMAX-1
Production testing of 68m for CLIMAX-2
Drill rig mobilizing to drill CLIMAX-3
Mobile, membrane separation facilities: First stage of production
2nd Stage: permanent membrane separation facility
3rd Stage: Permanent poly-generation facility that makes products from the CO2 and the N2 gases
3rd or 4th stage: liquefaction facilities allowing full downstream transportation and worldwide export.
Sell products both direct to customer and wholesale to re-sellers
Largest Helium Lease Holders in N. America
4,000 square km of prospective helium lands across southern Saskatchewan
572 sections of land in Saskatchewan
Southern Saskatchewan
Saskatchewan has a history of current and historic primary helium production. It is one of the few places on the planet where helium is produced with nitrogen rather than hydrocarbons. Saskatchewan has the potential to replace supply that is leaving the market
▪High helium concentrations
▪Stable regulatory environment
▪Geopolitically favorable especially associated with production and export of critical commodities
▪Existing infrastructure, information and personnel from a long history of oil and gas exploration and production
CLIMAX & BENGOUGH HELIUM PROJECTS
Royal Helium’s initial focus begins in two areas, Climax and Bengough, identified using a combination of seismic data, well logs and aeromagnetic surveys that narrowed down prospective areas to locate the source rocks for the helium enrichment (where the helium could be trapped and accumulated)
Royal Helium’s goal is to prove-up to 30 structures, targeting between 1.0 to 2.0 Tcf (Trillion cubic feet) of raw inert gas grading at least 1% Helium
Single well costs around CAD$1.5 million with pay back in less than 1 year
Exploration Parcel #1 – CLIMAX
Royal Helium Ltd.’s Climax-1 helium exploration well drilled to target depth of 2,600m
Royal Helium Ltd. has successfully drilled Climax-2 to a total depth of 2,611m
Selected target completion intervals for both the Climax-1 and Climax-2 helium exploration wells. (potential helium-bearing zones)
The Climax-3 drilling nearing target depth
Completion and testing of Climax-1 and Climax-2 involves the sequential perforation and production testing of approximately 70 metres of potential helium-bearing zones at Climax-1 and approximately 68 metres of potential helium-bearing zones at Climax-2, both spanning multiple structural zones.
Consistent with Climax-1, the Climax-2 well was drilled into the Precambrian basement at the base of the Deadwood formation. The Deadwood is a sand and shale sequence that is known to produce helium in Saskatchewan. These first three wells are targeting different parts of the same large structural trap identified on the central portion of the Climax land block.
The seven drill targets at Climax were identified in late 2019 after the company first reprocessed 77.6 km of 2D seismic in conjunction with historic well logs and delineated a basement structure of ~3,094 hectares of four-way structural closure.
Another 17,676 hectares of helium permits (100% crown) located immediately west of its Climax property were then granted in November 2019.
To further define the possible inert gas/helium bearing formations and refine company target wells, a deep, detailed aeromagnetic survey was flown over the Climax central structure in May.
Exploration parcel #2: Bengough
South-Central Saskatchewan with Five Target Wells Comprise roughly 50% of the total land holding
Royal has reprocessed 50.36 square km of 3-D seismic, which was acquired in 2017. The re-interpretation was completed to gain an understanding of regional basement structures and to identify potential drill targets. The 3D seismic shows a large regional feature with multiple closures.
Five (5) of these closures have been identified as initial drill targets and will be subject to further detailed investigation, including an airborne magnetometer survey.
Royal believes that the Bengough basement structure is part of a larger regional basement structural trend extending at least 60 miles north from the US border and passing through three of Royal’s Focus Areas.
Along this trend, historic helium tests have ranged from 0.70% to 0.78% at Minton, 1.39% to 1.41% at Bengough, and 0.48% to 2.45% at Ogema/Ogema North.
Royals southeast Saskatchewan lands, which comprise roughly 50% of the total land holding, show the potential for robust helium occurrences. With the strategy of full-cycle inert gas capture, refining and liquefaction, it is crucial to develop a large number of derisked drill targets throughout the Company’s significant land package.
The initial five targets identified at Bengough is an exciting first step in the southeast, growing the initial target inventory to 12 when combined with the seven targets on the Climax project in southwestern Saskatchewan.
Saskatchewan Research Council
The SRC is Canada’s second-largest research and technology organization. With more than 290 employees, $91-million in annual revenue and nearly 75 years of experience, SRC provides services and products to its 1,500 clients in 27 countries around the world.
Commenced Engineering Study for a Helium Polygeneration Facility in Saskatchewan
The results of this initial engineering and economic study due Dec. 2020
Royal Helium Ltd. has initiated the engineering and scoping study for a large-scale industrial gas polygeneration facility located in Saskatchewan, which will be conducted by the Saskatchewan Research Council
The study is Royal’s first step in determining the economic potential of a large-scale facility for the separation and monetization of the gas streams associated with helium production wells in Saskatchewan.
Royal is reviewing whether there is an opportunity to monetize the complete gas stream. Current economic analysis does not include credits for other potentially commercial gases produced and processed. While the economics of helium production are significant on their own, the impact of the commercialization of other gases could substantially add to net cash flow.
