GasRock’s leasehold of approximately four-hundred and eighty (480) net mineral acres is located north of Otis, Kansas, a region renowned for oil & gas production. The leasehold position was acquired on 15 July 2020 and gives the company the right to explore and produce for all gases and oil for a period of two years, and for as long as the company is producing commercially thereafter.
Nearby oil & gas production
In excess of 1 billion barrels of oil has been recovered using conventional methods from the Lansing Formation, Kansas. Helium has been found in natural gas produced from the Topeka and Lansing formations, to the west of GasRock’s acreage in concentrations ranging from 1.6 – 2.4%.
Two wells with detailed data, have previously been drilled on, and adjacent to, the company’s acreage in the past. Both demonstrated a significant increase in pressure when shut in evidencing naturally low-permeability in the rock.
GasRock believes that this rock may respond to fracking which will increase flow of all fluids (brine, oil and gas). This is contrary to current methods in the nearby area that attempt to avoid brine. The pilot well to test this theory is already fully funded by the Company’s US partners. Drilling will include the evaluation of all formations with modern logs, gas detection equipment, onsite physical examination of fresh cuttings and at least one fracture treatment.
“Proof of Concept” will be if fracking does indeed increase the natural permeability of the rocks and if they will release brine, oil and natural gas containing helium.
Helium can initially be sent to market via a privately owned nearby gas gathering system and helium plant. Ideally the company will develop its own infrastructure and helium recovery operations when the scale of such capital investments is justified but will seek to work with neighbouring companies initially.
If the project is successful, develop the field and begin recovery of all by-products. Oil will be sold but any natural gas may be injected into a shallow storage zone until a natural gas pipeline can be justified.
If the pilot well is successful, GasRock will expand its acreage and either raise capital to advance the development of the discovery or seek partners to advance the play more broadly in exchange for a carried interest in the ongoing wells and leases.