Buffalo Potash Completes First Horizontal Well and Spuds Second at Disley Initial Production Module
Buffalo Potash’s first horizontal IPM well achieved 95% clay-seam contact while a second well has been spudded.
Buffalo Potash Corporation (BUFF) released an operations update on August 26, 2026, confirming the completion of the first of three planned horizontal wells at the Disley Initial Production Module. The company completed Producer Well 1, designated as the 5D15-10 well, which features a 565-metre lateral. During drilling, the operation achieved approximately 95% contact with the target clay seam along the well path. An 11-stage packer system was installed on Producer Well 1 to collect KCl-rich brine.
The company has also spudded Producer Well 2, the 4D15-10 well. The third planned horizontal well, the 1D15-10 Injector Well, is scheduled to follow. According to the release, the Initial Production Module (IPM) has a design capacity of 125,000 tonnes per annum of soluble-grade potash, with a target for first production in Q1 2027 and a full-buildout potential of up to 1,125,000 tonnes per annum.
The update restates Preliminary Economic Assessment (PEA) figures, including an after-tax net present value (NPV) of US$1.1 billion at an 8% discount rate, an internal rate of return (IRR) of 30%, and an IPM standalone payback period of approximately 12 months from the start of production. Buffalo Potash disclosed that the production decision is not based on a feasibility study with mineral reserves, noting that no mineral reserves have been established and that the Horizontal Leaching Drilling (HLD) method has not been operated at commercial scale.
The company’s Chief Operating Officer stated that this marks the third consecutive well delivered ahead of schedule and under budget, emphasizing that the 95% contact with the clay seam is a key element for establishing the mining plane.
Buffalo Potash Corporation (BUFF) issued an operational update on August 18, 2026, confirming that the first horizontal well was drilled, packers were installed, and the second well was spudded. This announcement serves as an execution update within a program already announced and underway, confirming that the horizontal drilling phase had begun. The release does not contain a new resource estimate, new economic study, new financing, or a change to the Q1 2027 production target.
The company reported that 95% clay-seam contact was achieved, a detail management described as technically encouraging and supportive of horizontal well placement. Management also stated the project is "ahead of schedule and under budget," marking the third such statement, though no budget dollar amount, schedule days, or cost variance was quantified. The installation of packers is a required step toward brine circulation, but it does not yet demonstrate KCl-rich brine flow or production.
The project remains pre-revenue, with no established reserves and an unproven commercial-scale mining method. The most recent news is consistent with prior disclosures and does not exceed prior expectations.
Buffalo Potash Corporation (BUFF) is a pre-revenue Saskatchewan-based potash developer pursuing selective solution mining through its patented Horizontal Line-Drive technology. The company’s flagship Disley Project is located approximately 50 kilometres northwest of Regina, Saskatchewan, covering 10,610 hectares of Crown and Freehold mineral rights. Situated east of the K+S Bethune potash solution mine and north of the Mosaic Belle Plaine solution mine, the Disley Project is the current focus, though the company also holds the Odessa and Edenwold properties.
Development is structured in modular phases. The Initial Production Module (IPM) targets 125,000 TPA of soluble-grade potash, while Disley West and Disley East are each planned at 500,000 TPA, with a full buildout target of up to 1,125,000 TPA.
A Preliminary Economic Assessment (PEA), prepared by Micon International and dated May 21, 2026, effective April 15, 2026, reports the following financial metrics:
- After-tax NPV of US$1.1B at an 8% discount rate.
- After-tax IRR of 30%.
- Full-project initial capex estimate of US$639 million.
- FOB mine opex estimate of US$55/t MOP.
- Granular MOP price assumption of US$394/t and soluble grade US$374/t.
The PEA is preliminary and includes inferred mineral resources; no mineral reserves have been established. The release states the property is 100% owned, with no royalty, stream, or back-in rights disclosed in the provided materials.