Buffalo Potash Completes Second Horizontal Well and Spuds Third at Disley Initial Production Module

Buffalo Potash Corporation (BUFF) announced the completion of the second horizontal well, designated as Producer Well 2, and the spudding of the third horizontal well, the Injector Well, as part of the second phase of development at its Disley Initial Production Module (IPM). The company successfully installed an 11-stage packer system on Producer Well 2 to facilitate KCl-rich brine collection and confirmed approximately 95% contact with the target clay seam, validating the well placement.

The drilling of the 4D15-10 Well, known as Producer Well 2, involved a 565-meter lateral well. An 11-stage packer system was installed along the well to act as collection points for KCl-rich brine. The operation achieved approximately 95% contact with the target basal Belle Plaine clay seam, confirming accurate placement within the target production horizon. This marks the second successive horizontal well to achieve 95% contact with the target clay seam.

Concurrently, the company spudded the 1D15-10 Well, known as the Injector Well. This is the third and final horizontal well of the Phase 2 Horizontal Line-Drive drilling program and is intended to inject NaCl-rich brine from the surface into the mining plane.

The IPM buildout is broken into five phases: Source/disposal wells (complete), Horizontal Line-Drive drilling (ongoing), Brine circulation, Site development, and Surface processing. First production from the IPM is targeted for Q1 2027. The IPM is the first of three planned solution mining facilities; full build-out, including Disley East and Disley West, is expected to produce up to 1,125,000 tonnes per annum of potash. The IPM is designed to produce 125,000 tonnes per annum of soluble-grade potash.

A preliminary economic assessment (PEA) estimates a 12-month payback period for the IPM from the start of production. The PEA estimates an after-tax net present value (NPV) of US$1.1 billion at an 8% discount rate and an internal rate of return (IRR) of 30% for the full project. No mineral reserves have been established; the production decision is not based on a feasibility study, carrying higher risks of economic and technical failure.

Technical information was reviewed by Douglas F. Hambley, PhD, PE, P.Eng., PG, and Jared Galenzoski, P.Geo, FIMMM.

Quinton Hardage, P.Eng., PMP, President and Chief Operating Officer, stated: "Successfully laying each of the horizontal production wells for our mining plane along the identified basal Belle Plaine clay seam is key to being able to establish efficient fluid connection between wells. To now have both producer wells come in ahead of schedule and under budget, while making contact with 95% of the target clay seam is a fantastic outcome and gives our team a lot of confidence as we begin drilling our third and final horizontal leg - the horizontal injection well."