Bruin Point Helium Corp Received Phase 2 Seismic Interpretation
VANCOUVER, March 6, 2018 /CNW/ – Bruin Point Helium Corp. (the “Company” or “Bruin Point”) (TSX Venture: BPX) is pleased to announce that as a result of the Phase 2 Seismic Programme (“Phase 2”) interpretation, it can report an increased Prospective Helium Resource Estimate and the delineation of the Company’s first drilling location.
The updated Prospective Helium Resource Estimates set out in this press release were prepared in accordance with the requirements of Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
Independent Qualified Reserves Evaluators, Gustavson Associates LLC (“Gustavson”), interpreted the Phase 2 data and provided an updated Probabilistic Prospective Resource Analysis. Phase 2 consisted of nearly 60 line miles of 2D seismic data, purchased from Seismic Exchange Inc., spanning the Company’s 17,767.04 acre Helium Project located near the Greater Uinta Basin, Carbon County, Utah (the “Project”).
David Sidoo, Chairman of Bruin Point comments “The new seismic analysis coupled with the data from our prior exploration processes on the Project have helped us delineate and high-grade our first drilling location. The work has confirmed that key geological structures targeted by Phase 2 have been found to be present across the acquisition area. Importantly, it has translated into a 33% increases in the Prospective Helium Resource Estimate within the Manning Canyon Horizon.”
Key Findings of the Phase 2 Structural Interpretation
Confirmed the large faulted structure found in Bruin Point’s Phase 1 Seismic Programme.
Identified that the Manning Canyon Horizon (“Manning Canyon”), the Company’s key target horizon, has several associated faults, which could cause natural fracturing.
Indicated that a thrust fault occurs at the Manning Canyon level that results in a potential repeat section of the sediment layers just above the basal granite.
Increased Manning Canyon Prospective Resource Estimate
Based on the structural interpretation in the Manning Canyon, Gustavson Associated have provided an updated Probabilistic Resource Analysis relating to this horizon (Figure 1). The results of which have delivered a 33% increase in the Prospective Helium Resources Estimate in the Manning Canyon.
Figure 1. Summary of Manning Canyon Gross Unrisked Prospective Resource Estimates
Low Estimate (P90)
Best Estimate (P50)
High Estimate (P10)
First Drilling Location
Through the Two Phase Seismic Programme interpretation, a subsurface model has been built by Bruin Point’s team. Based on this the Company has delineated its first well location on the Project acreage (or leasehold).
The location of the planned well will be in the South-Western area of the Project, up-dip of the large faulted structure that was identified in Phase 1 and intersecting the potential repeat section of the Manning Canyon identified in Phase 2.
The Company will now engage in the permitting process for the well site, and commence the first steps to establish Federal Units on the Project. (In Utah, Federal exploratory units are mandatory and are formed in order to explore for conventional and/or unconventional resources).
David Sidoo commented: “It has been an extremely productive period for the Company, highlighted by the completion of our Two Phase Seismic Programme and the delineation of our first well location”.
“Bruin Point has recorded rapid progress in relation to its exploration plan. In doing so, it has been able to streamline its efforts to provide maximum shareholder value. The Project continues to move forward at an impressive rate and management remains focused on one day bringing this Project to production. Moreover, the Bruin Point team are currently assessing a number of opportunities to acquire prime North American Helium assets to fulfil our aim of becoming a globally significant helium producer”.
Sidoo goes on to note that “our development timeline to potential production and acquisition strategy comes at an important time for the helium industry – the market continues to be a fragile one, with a strong reliance on a few mega-sources. Around 75% of all the helium consumed around the world is produced at three locations – Ras Laffan Industrial city in Qatar, ExxonMobil in Wyoming, US, and helium refining facilities linked to the BLM Pipeline. This, coupled with geopolitical issues, notably the Qatar embargo in the summer, and the depletion of the BLM storage facility set to cease by 2021, is creating a new-look helium business altogether. The industry has been scrambling to bring new capacity online around the world.”
For more information about Bruin Point, please visit http://www.bruinpoint.com/.
About Bruin Point Helium
Bruin Point Helium Corp., headquartered in British Columbia, Canada, is exploring for helium on its acreage, covering 17,767 acres (100% Working Interest (WI) and 87.5% Net Revenue Interest (NRI) in all 12 leases) in southeast Carbon County, Utah, with planned exploration well(s) due in 2018. Holding potentially significant helium resources, Bruin Point Helium is poised to capture the opportunity offered by rising helium prices due to growing demand for helium globally being driven by new technology-based applications. Bruin Point Helium Corp. is listed on the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “is expected”, “intends”, or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Bruin Point that involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Prospective Resources are defined as “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.”1 There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The Low Estimate represents the P90 values from the probabilistic analysis (in other words, the value is greater than or equal to the P90 value 90% of the time), while the Best Estimate represents the P50 and the High Estimate represents the P10.
SOURCE Bruin Point Helium Corp