The Atlantis Field
The Group's Atlantis Field is located between two of the most significant biogenic gas fields in North America, which have so far produced a total of 6.5 Tcf, valued at over US$50 billion at current prices. Since its incorporation the Group has steadily acquired over c.290,000 acre land position in northern Montana, on which a major aquifer containing natural gas has been discovered in the Eagle and Virgelle formations, sedimentary formations of Cretaceous age lying at depths of 1,000 to 1,500 ft below the surface. This unconventional, shallow natural gas resource can only be produced in conjunction with large volumes of formation water, and consequently the industry has previously struggled to commercialise gas discoveries in the area. The formation water is an unusual sodium chloride brine with high concentrations of iodide but relatively low levels of dissolved salts (approximately 6,500 mg/L), and has no contaminants or hydrocarbons other than methane, thereby reducing processing costs. Iofina intends to produce gas along with water, but to also extract the high levels of iodine which the formation water contains.
The Group has acquired lease rights to produce both iodine, co-produced water and natural gas at the Atlantis Field. To date the Group has acquired approximately c.290,000 acres. In addition, the Group owns a thirty four miles of pipelines and has 34 wells. The pipeline is already ultimately linked to the TransCanada pipeline system, offering Iofina access to national gas markets.
The Atlantis Field target region is located between two of the most significant biogenic gas fields in North America; Medicine Hat field to the north, has already produced 5 Tcf of gas while Tiger Ridge field to the southeast has produced 1.5 Tcf. The Company estimates that as much as 1.8 Tcf OGIP of natural gas exists in the Atlantis Field, within Cretaceous age sandstones of the Eagle and Virgelle Formations.
In the Medicine Hat gas field, the gas lies down-dip from a regional, non-gaseous aquifer (the opposite to most conventional gas pools), and is trapped by down-dip water flow through the poor quality reservoir rock. In the Atlantis Field, the reservoir quality is significantly better, but as a result, the gas saturations are lower.