Monday, January 12, 2009

Battle for Arizona's helium resource

The world's largest helium reserve, outside Amarillo Texas, will be depleted in 8 years, according to a story at The price of liquid helium is up about 50% in the past year to $5 per liter.

In Arizona, Enhanced Oil Resources (previously Ridgeway Petroleum) has been drilling in the St. John - Springerville region [right, pumpjack. Credit, EOR] to prove up enough reserves of carbon dioxide and helium to make full scale development economically feasible. The CO2 would go to New Mexico and Texas for enhanced oil recovery projects but the company expects the real profits will come from the tiny amount of helium also present in the gas.

Other companies are looking at the area, with competition over control of mineral leases heating up.

The Arizona Oil and Gas Conservation Commission (which get's its technical support from the AZGS) expects to get an update on exploration activities this Friday at its regular quarterly meeting in Phoenix.

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