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Permalink Reply by Skip Peel - Mineral Consultant on October 2, 2024 at 12:26

Prehearing regarding lithium royalties application set for Oct. 11

An Arkansas Oil and Gas Commission spokesperson confirmed Wednesday the prehearing for the lithium royalties application, where applicants and objectors to the application will make their arguments before an administrative law judge, will take place at 9 a.m. Oct. 11.

The meeting will be at the Department of Energy and Environment headquarters in North Little Rock, and will be streamed online via the department's YouTube channel.

The prehearing will be held "like any other hearing," spokesperson Carol Booth said in an email.

Administrative Law Judge Charles Moulton will then make a recommendation on a course of action to the Oil and Gas Commission, which will consider it at the two-day hearing scheduled for Nov. 4 and 5 in El Dorado.

At least 74 mineral rights owners are formally opposed to the royalties application submitted by the five companies, with one of the common arguments being the 1.82% royalty is too low compared to the potential profits the companies stand to make.

On the flip side, applicants say the royalty meets the "fair and equitable" standard enshrined in state law, saying in the application that the companies will have to take on significant risk and capital expenditures to make a lithium extraction industry in Arkansas a reality.

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Permalink Reply by Skip Peel - Mineral Consultant on October 9, 2024 at 1:55

Production Services will drill Pantera Minerals' first lithium brine well

Pantera Minerals Limited, an Australian-listed mineral exploration company, has signed a Master Services Agreement with Production Services Inc. of Magnolia.

Production Services, an oil and gas services led by President Therral Story, will undertake the re-entry of Pantera Minerals’ first well at its the Smackover Lithium Brine Project in Lafayette County.

Pantera said in a statement that the agreement marks a significant step in Pantera’s plan to advance its lithium brine exploration efforts in the highly prospective Smackover Formation.

In May, Perth-based Pantera said it had increased its lithium brine leases to more than 18,570 acres located west of ExxonMobil’s leases in southern Lafayette County.

The rig agreement between Pantera and Production Services will result in re-entry and testing at a well that is expected to commence in mid-October.

The re-entry test will focus on sampling brine from the upper Smackover Formation to evaluate lithium concentrations. The lithium grade obtained from these samples will provide the most accurate data to date, supporting the company's resource modelling efforts and guiding the location of a second well.

The first re-entry well is strategically positioned to allow for both production and disposal, creating an opportunity for Pantera to operate a pilot plant in 2025, the company said.

Barnaby Egerton-Warburton, executive chairman of Pantera Minerals, said, “The company is extremely excited with the imminent testing of lithium brine grade at its Arkansas Smackover Lithium Brine Project. With the contracting of a work-over rig we are now in the final stages of preparation for our first well. The company believes the Australian market place is not correctly valuing the potential upside of the company’s project, but is aware of many corporate eyes on the company, its project and its progress.

“The company continues to see aggressive leasing surrounding its exclusive abstract area and now sees its position surrounded by both large listed and privately funded groups,” he said.

Pantera will continue to collaborate with SLB on the design of the testing procedure, with the well re-entry scheduled to start later this month. The brine samples obtained will be tested by multiple Direct Lithium Extraction (DLE) technology providers, with a focus on identifying the most efficient method for processing the lithium-rich brine. The results of these tests will inform future exploration and resource definition activities, including the planning of a second well and potential pilot plant operations in 2025.

 

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Permalink Reply by Rock Man on October 9, 2024 at 3:51

Great to see. I wonder if the re-entry well is already cased? That makes things easier.

Perforate and extensive flow test to get good take on formation water characteristics.

Wonder if it has associated H2S?

Side note - drove through Luling (Tx) last night / the H2S rotten egg odor pervasive through the entire town and surrounding area around the old shallow oil field (which produces with about a 99% water cut)

I point this out since this is a concern of mine for any water "mining" operations in this area

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