Imperial Helium Corp. have confirmed the presence of helium in an additional zone on the Steveville Structure. Following the drilling, logging and casing of third well, IHC-Steveville-3 (12-12-020-12W4), The company has commenced the first of two planned 30-day production tests on the well which will be run consecutively to test two separate zones in the Beaverhill Lake formation.

The two zones being tested are the new lower Sub-Salt Zone and the Blow-Out-Zone, which was previously production tested as first potential producing horizon in IHC-Steveville-2. Consistent with IHC-Steveville-2, IHC will engage an independent third-party to analyze the production test results from both the SSZ and BOZ in IHC-Steveville-3, which will be communicated as available. Upon commencing the first production test of the new SSZ, an immediate strong flow of gas to the surface was observed. The gas has a helium concentration of 0.51% based on initial gas analysis - approximately 19% higher than the concentration encountered from the BOZ in IHC-Steveville-2. Petrophysical results from IHC-Steveville-3 indicates a pay thickness of approximately 5.2 metres for the SSZ.

SSZ has similar reservoir properties and characteristics to those found in the pay zone of the BOZ in IHC-Steveville-2. Gas analysis of the SSZ shows no presence of CO2, which is positive from an environmental impact perspective. Production testing of the SSZ will record pressures over a ten-day flow period followed by approximately 20 days of the well being shut-in. Upon completion of the 30-day test of the SSZ zone, Imperial will commence a 30-day test of the BOZ zone which will include a gas composition test to confirm helium concentrations within the BOZ in IHC-Steveville-3. As with production testing of the SSZ, tests of the BOZ will record pressures over a ten-day flow period followed by approximately 20 days of the well being shut-in.

Because of the high reservoir quality of the BOZ, IHC will locate pressure recorders within IHC-Steveville-2 to determine if the BOZ in IHC-Steveville-2 and IHC-Steveville-3 are in pressure communication over a distance of 4.2kms. the BOZ tested in IHC-Steveville-2 is estimated to be capable of an absolute open flow rate of 22 mmcf/d, or sustained production of 5-8 mmcf/d for a period of three years before a gentle decline of approximately 15% per year commences and extends for an overall well life of 15 to 20 years based on current resource estimates.