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KANSAS - The State of Kansas has approved M3 Helium Corporation’s Brobee salt water disposal well, clearing the final regulatory hurdle needed to bring the company’s Rost 1-26 well into production, according to a press release from Mendell Helium PLC.
The Brobee disposal well has received a permit to operate with an authorized injection rate of 5,000 barrels of water per day at 1,200 psi, which exceeds the capacity required for production at the Rost well. This additional capacity could potentially accommodate water production from offset wells in the future.
Prior testing in May demonstrated the well could handle over 4,500 barrels of water per day at 640 psi, confirming its operational capabilities before receiving formal approval.
Mendell Helium, which holds an option to acquire M3 Helium as announced in June 2024, noted that final preparations to commence production at Rost are now underway. These preparations include connecting Rost to the Brobee disposal well and installing necessary water tanks and pumping equipment.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, called the permit approval "a significant milestone" for the company, emphasizing that water disposal capability is critical to the Rost well’s success.
The company stated that the development of Rost and the surrounding area forms an important part of M3 Helium’s strategy. However, Mendell Helium clarified that there is no certainty that its option to acquire M3 Helium will be exercised, nor that any potential enlarged group would successfully complete a re-admission.
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