GARLAND, Texas, Oct. 19, 2016 /PRNewswire/ -- The Holbrook Basin which is located in northern Arizona, is being hailed as the "Saudi Arabia of Helium" by those in the know who are close to the natural gas and crude oil industries. Helium is a non-renewable, technology driven resource and our global supply is running out, while the constant demand continues to grow. Recent helium prices have sky-rocketed upwards of $125/mcf for standard grade helium. The problem has been the inability to separate and store helium for market without being in close proximity to a helium processing facility.
New technology has been recently developed that allows helium to be captured, separated and stored at the wellhead. Problem solved. In the past, the goal of producing helium has only been achieved by those wells that had access to these large helium processing plants. The cost to get helium to storage at a regional selling point simply exceeded the ability to make a profit. With this newly developed technology, which is small and portable, a few companies like Rare Earth Exploration, LLC are in the middle of one of the hottest lease acquisition and drilling prospects in the United States.
"A true game changer," says Timothy Taylor, CEO of Rare Earth Exploration, LLC. Mr. Taylor emphasizes that "with this new gathering technology, the break-even price of helium is around $1/mcf. Now considering Grade A helium can bring as much as $200/mcf, the profit potentials are staggering." Mr. Taylor continues, "The play's already sky high potential is further bolstered by low drilling and well completion costs due to shallow target depths for helium reservoirs and conventional vertical completions with little need for fracking."
Well spacing requirements have recently been reduced, adding increased interest in helium exploration in Arizona, specifically the Holbrook Basin and the Pinta Dome Field, the largest discovery of helium found, to date, in Arizona.
Advances in technology and, global supply and demand have ushered in a new phase of development and excitement for these prolific Arizona helium fields as Mr. Taylor goes on to say, "The surface has only been scratched regarding helium production in the Holbrook Basin and specifically the Pinta Dome Field. With the new spacing rules you're going to see a lot of in-field drilling over the next few years in the Pinta Dome and Navajo Springs Fields."
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SOURCE Rare Earth Exploration