GARLAND, Texas, Oct. 17, 2016 /PRNewswire/ -- The Holbrook Basin of northern Arizona is being hailed as the "Saudi Arabia of Helium" by those in the know who are close to the natural gas and oil exploration industries. While this has been a known fact for quite some time, helium drilling has been stagnant for the most part until recent helium prices that have sky-rocketed upwards of $125/mcf for standard 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 the large helium processing plants, of which there are few. The cost to get helium to storage at a regional selling point simply exceeded the ability to make a profit. With the new technology, which is the size of a couple of Volkswagens, companies like Rare Earth Exploration, LLC, among a few others, 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 "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 fracing."
Recently, well spacing requirements have been reduced further increasing interest in helium exploration in Arizona and specifically, the Pinta Dome Field – the largest helium field found to date in the state. These changes have ushered in a new phase of development for this prolific field 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