Bruin Point Helium Corp. (the “Company” or “Bruin Point”) 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
Finding #1
Confirmed the large faulted structure found in Bruin Point’s Phase 1 Seismic Programme.
Finding #2
Identified that the Manning Canyon Horizon (“Manning Canyon”), the Company’s key target horizon, has several associated faults, which could cause natural fracturing.
Finding #3
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
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.
Moving Forward
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.