Sunday, March 10, 2024

Important Northeast Minnesota Helium Discovery Confirmed and Updates on Helium and Hydrogen Projects in Tanzania and South Australia


The Topaz Project in Minnesota’s Iron Range

 

     Pulsar Helium, Inc. tested an appraisal well at its Topaz Project in Northeast Minnesota at 12.4% helium and it could be the biggest Helium concentration discovery in the U.S. The deposit was actually discovered in 2011 with other shows of inert gas having been recorded in the Iron Range region as well. N2 and CO2 are also present in the area. The appraisal well was drilled to 2200 ft.  

     I did a long post back in December about Helium called Helium Exploration: State of the Science: Geology, Reserves, Economics, and Some Plays and Prospects . In that post I mentioned some possibilities along the Mid-Continent Rift System, part of which runs through Eastern Minnesota. This play would confirm the potential of the rift system, which has an extensive range. Exploration for helium and natural hydrogen is ongoing with active projects in Kansas and Nebraska.  

     The following slides from Pulsar’s latest corporate presentation explain the discovery, helium reserves, pricing, uses, and market factors.

 











 

Pulsar plans to have a feasibility study conducted by an independent third party “to study the size of the well and whether it could support a full-service helium plant.” That process may take till the end of the year, they say.  Helium is currently in short supply and commands a high price so development of confirmed new resources could be quite helpful in both securing supply and perhaps in time, lowering the prices. Helium is best used near to where it is produced. Northeast Minnesota is a two-day drive or less to most places in the U.S. Helium is a small molecule and leakage rates can be high when it is shipped internationally over long periods of time.

 

 

Update on Helium One’s project in Tanzania

 

     On March 7, Helium One provided an anticipated update on well testing results for their Tanzania helium project. A drill stem test (DST) of the Itumbula West-1 well measured a minimum flow rate of 0.5 million cubic feet per day, with a helium concentration of 4.7%.

 

"The company's focus is now on appraising and evaluating the resource potential at Itumbula West-1," chief executive Lorna Blaisse said in a statement.

 

Whilst progressing the subsurface work, to better understand the resource estimates in a fractured Basement and fault play, we are planning the next phase of operations.”

 

“An extended well test at site will enable us to confirm commercial flow rates and fluid composition, whilst continuing to plan for development and production scenarios in parallel.”

 

The company’s owned drilling rig is awaiting its next hole.

 

 

The Ramsay Natural Hydrogen and Helium Project; Yorke Peninsula, South Australia

 

     Meanwhile, on the Yorke Peninsula in South Australia, company Gold Hydrogen is beginning to test their recent exploratory wells, Ramsay 1 and Ramsay 2, which confirmed historical data. The wells found natural hydrogen at up to 86% purity and helium at up to 6.8% of raw gas. The wells are providing valuable gas samples for lab analysis. “The data will provide a better understanding of the characteristics of the natural hydrogen and helium reservoirs, including an understanding of potential wellbore skin damage from drilling.” Gold Hydrogen claims the area has “large-scale potential” and that may well be the case. “The independent best estimate prospective resource for natural hydrogen on PEL 687 is 1.3 billion kilograms and for helium, the mean estimated prospective resource is 96 billion cubic feet (Bcf) over around 25% of the tenement.” Future plans include more wells to be drilled and more 2D seismic for 2024, completion designs to be worked out, and plans for pilot production and further commercialization. The company does note that natural hydrogen production is very new. Producing both natural hydrogen and helium together will likely have both advantages and challenges.

 

 

 

References

 

 

"A dream. It's perfect": Helium discovery in northern Minnesota may be biggest ever in North America. Jonah Kaplan. Updated on: February 29, 2024. CBS Minnesota. "A dream. It's perfect": Helium discovery in northern Minnesota may be biggest ever in North America - CBS News

 

Pulsar Helium Inc. Corporate Presentation. February 20, 2024. 65d652fee855ca9a90c2b8af_Pulsar_corp_deck_20Feb24_FINAL-compressed.pdf (website-files.com)

 

Helium One reveals rates from Itumbula as it advances to appraisal phase. Proactive. March 7, 2024. Helium One reveals rates from Itumbula as it advances to appraisal phase | AIM:HE1, OTCQB:HLOGF (proactiveinvestors.com.au)

 

Gold Hydrogen begins testing natural hydrogen and helium exploration well at Ramsay Project. Meagan Evans. Proactive. March 5, 2024. Gold Hydrogen begins testing natural hydrogen and helium exploration well at Ramsay Project (proactiveinvestors.com.au)

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