Royal Helium awarded contract to build recovery plant near Brooks

By MEDICINE HAT NEWS on November 4, 2022.

https://www.medicinehatnews.com@MedicineHatNews

Royal Helium has awarded a construction contract to build a recovery plant 40 kilometres north of Brooks to gather production of the inert gas from three wells it has in the same area.

The “Steveville” facility will separate well production into helium, food-grade carbon dioxide, natural gas condensate and fuel for on-site operations, according to an Oct. 12 release by Royal Helium. Production will be trucked off site.

Arjae Design Solutions Ltd. of Nisku, Alta., has been engaged to build and commission the facility, designed by Obsidian Engineering. No budget estimate was provided.

Royal states site work has begun and long-lead equipment has been ordered.

New Glauc C owner

Journey Energy has closed its purchase of the Canadian assets of Enerplus, including substantial field northeast of Medicine Hat.

The 420 wells and 46,000 gross acres located here and in northeastern Alberta will add about 4,000 barrels per day of oil production to the junior exploration company that paid a total of $140 million for the assets of Enerplus. The deal, announced in July 2022, includes a stock and vendor take-back loan of $45 million.

Journey said in a release on Oct. 31 that its main lender and shareholder, AIMCo., has approved the deal.

The City of Medicine Hat sold its one-quarter non-operating share in the Glauc C in early 2021 for a total consideration of $20 million, “mostly” in cash, according to city officials. The sale to privately held company, Cache Island, was brokered by legal firm McCarthy Tetrault. At the time, wells the field accounted for about 900 of the city’s 1,200 barrel-per-day oil production rate.

11
-10