Highlands Natural Resources Plc (LON:HNR) has revealed progress behind the scenes as it works towards the start of drilling at its helium project in Montana.
The company told investors it expects to be drilling within the next 30 days, with two wells planned.
In the meantime it has been filing for permits and bonds with the State of Montana, and has been holding conversations with several parties that may potentially partner the company in a joint venture. These companies include international industrial gas companies, Highlands said.
It has also expanded its footprint in the area, leasing a further 29,953 acres giving it rights to a total of 104,652 acres across the two Helios Two prospect area.
The drilling plans are based on a significant amount of data, Highlands noted, and the programme aims to demonstrate the technical and economic viability of a dewatering technique that the company intends to use in order to unlock significant resources.
Robert Price, Highlands' chief executive, said: “Subject to receipt of permit and other approvals, we are now prepared to commence drilling and dewatering operations in order to validate the economics of potential natural gas and helium resources at Helios Two.”
Price highlighted that nearby well data allows the Highlands team to understand the petrophysical and geologic conditions expected in the reservoir.
He added: “We are encouraged that similar well data extends across broad portions of the Helios Two prospect, thereby facilitating full-field development planning in the case of a successful pilot programme.
“Soon after commencement of pumping, we expect to gather and release important technical data from the pilot programme, including gas analyses and initial reservoir performance metrics.”