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AMGAS's Peyton 21-1 Produces up to 0.5% Helium Concentration

American Noble Gas released initial results from its first production well on the Hugoton gas field, Peyton 21-1, confirming that it has been producing natural gas, NGLs, and helium at combined rate of >100 mcf/d. The helium concentration of the produced gas is ~0.5%, which is still accumulating in the company's account until sold. Although all three upper main pay zones have not yet been tested, the middle pay zone is currently being produced, with the addition of more pay zones in the future. AMGAS is currently in talks with multiple potential buyers of its production. AMGAS highlighted the benefit it has of significant existing infrastructure in the area. It plans to drill 50 wells and could reach 20mcf/d (~7mmcf/y) of helium based on vertical wells, which would still be relatively minor production.

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