Ur-Energy Successfully Completes Phase 1 Field Tests of Patented Well Installation Technology - Seite 2

Next Steps
Several additional steps will be taken by the Company prior to implementing our new technology on a commercial scale. First, to finalize permitting, we will submit a report to LQD detailing the results of initial testing. Because LQD Staff previously reviewed the engineering and witnessed the installation of wells utilizing the technology, we expect final approval will be efficiently processed.

Phase 2 field testing will focus on well development methods with the goal of maintaining flow rates consistent with conventional methods and verifying required rig time as utilized in Phase 1 installations. We will continue testing all aspects of the new technology, including well integrity and flow rates, by installing and operating several of the new injection wells in an operational setting. If the wells perform as expected, the technology will be implemented across Company operations.

Given the potential significant cost savings presented by our technology, we will initiate a hydrologic modeling exercise to determine what well pattern geometry and spacing is most cost effective. We believe the five-spot well pattern geometry currently used throughout the industry may be improved by utilizing our new technology in a seven-spot geometry as illustrated below. This seven-spot geometry is expected to increase the sweep efficiency, improve the percentage of uranium recovered, and shorten the time required for mining and groundwater restoration. The modeling exercise will balance the well geometry and spacing against economics to determine the most cost-effective way to utilize the new technology.

Foto: Accesswire

Future Application and Value to Ur-Energy
The new well installation technology is expected to be applicable across the in-situ recovery industry including in recovery of copper, lithium, soda ash, potash and other soluble minerals. The technology can also be applied in the groundwater restoration industry when treated water is re-injected into the host aquifer. The technology may also provide cost benefits when micro-purging of groundwater monitor wells is desirable. The Company plans to monetize the patented technology by licensing it to these and potentially other industries.