Oilman Jim's Letter - February 13, 2025

Helium Evolution (HEVI.V HEEVF) announced preliminary test results from its 10-36-3-9W3 helium discovery well, in which the company holds a 20% working interest in partnership with the operator, North American Helium. Completion, perforation and initial production testing of the well are ongoing, nevertheless, after an extended 5-day flow testing period, the 10-36 well was producing approximately 11.5 million standard cubic feet per day at 13,100 kiloPascal flow tubing pressure. The preliminary test results also confirmed a helium content of 0.81%, significantly higher than the commercially viable threshold of 0.3%. Additionally, the well produced negligible water, signaling strong potential for efficient helium recovery and processing. Following the extended production flow period, the well will be shut in for 14 days to gather reservoir pressure data, which will be analyzed to further evaluate the resource potential and optimize future development…more

Falcon Oil & Gas (FO.V FOG.L FAC.F) announced an update on the stimulation campaign for the Shenandoah S2-2H ST1 and Shenandoah South 4H wells in the Beetaloo Sub-basin, Northern Territory, Australia, with the company’s joint venture partner, Tamboran (TBN TBN.ASX), which acts as operator. Stimulation operations were successfully completed over 35 stages across the 5,483 feet horizontal section of the Amungee Member B-shale with Liberty Energy (LBRT) stimulation equipment and the SS-2H ST1 well is being prepared for the commencement of initial flow back and extended production testing. Announcement of 30 day initial production flow rates is targeted for April. Meanwhile, SS-4H commenced stimulation operations in January, however, completion operations had to be paused due to the detection of stress in a casing connection. Reinforcement activities are planned to be conducted in Q1 2025, aiming for stimulation activities to recommence in Q2 2025, as soon as the IP30 flow test is completed at SS-2H ST1. The deferred stimulation program should provide an opportunity to incorporate lessons from the SS-2H ST1 campaign. Announcement of IP30 flow rates are targeted for mid-2025. Additionally, Falcon Australia has received a A$4.7 million research and development tax offset in cash; the group’s current cash balance is US$8.2 million…more…more…more

New Zealand Energy (NZ.V NZERF) announced that the recently completed Tariki-5A well intersected the target Tariki sands 11 metres higher than prior wells and has confirmed the presence of significant remaining free gas and condensate in place up-dip in the field. These results and the high quality of the 55 metres net sand intersected has also confirmed the viability of Tariki as a gas storage field. Work is in progress to update the associated reserves and associated forecasts. Flow rates of more than 4 million cubic feet per day have been seen; stable rates have been approximately 1 million cubic feet per day with 25 to 30 barrels of condensate. To accelerate the storage phase of the Tariki field, the company is proceeding with design of the first stage injection and extraction gas storage project based on wells Tariki-5A and Tariki-1A; the target is injection at 10 to 15 million cubic feet per day and extraction at ~30 million cubic feet per day. Most of the required infrastructure for Stage 1 is already in place, with the exception of the final stage compression required at the well site. Studies indicate that the field is likely to be able to safely store between 25 and 40 billion cubic feet of gas. With the completion of Tariki-5A well operations, the company has focused field operations on restoring oil production from Waihapa wells 6A and H1 and anticipates them returning to production by mid and late February respectively, adding between 30 and 60 barrels per day oil production plus associated gas. The two well interventions are currently scheduled for Q2 2025…more

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