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| The site in Estevan is in a working oil-field (Courtesy DEEP) |
They’ve drilled their first well, and have now secured the mineral rights to the fluids from the area around it.
DEEP’s name came up in a government press release on April 25, announcing Saskatchewan’s subsurface mineral Crown disposition public offering held two days earlier. It was the first offering of the 2019-20 fiscal year, and raised $10,000 in revenue for the province based on interest in resource exploration in the Estevan area.
A single subsurface mineral permit block totalling 1,554 hectares (3840 acres, or six sections) was posted and received a bonus bid of $10,000. DEEP was the successful bidder. The permit block is located along the Saskatchewan-North Dakota border, approximately 30 kilometres southwest of Estevan, an area that is prospective for brine minerals such as lithium, the government release noted.
The permit block land is in the vicinity of the initial DEEP well, which is close enough to the U.S. border that you can see the U.S. from its lease.
DEEP is planning on a production test of their first well, drilled this past winter. The well will be produced into a tank farm, and those fluids will then be re-injected into the well. The test is expected to take about three weeks.
DEEP president and CEO Kirsten Marcia said on April 29, “This is for the mineral rights for any minerals in those fluids.”
“We’re planning our flow and built up test to come in June.”
That test will be used for the final design of the next well, which is planned to be drilled approximately 1 1/2 kilometres away from the first. Drilling is expected to commence in July.
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