Buffalo Potash Completes First Horizontal Well and Spuds Second at Disley Initial Production Module
Rhea-AI Summary
Buffalo Potash (OTCQB: BLPTF) reported that it has begun Phase 2 Horizontal Line-Drive drilling at the Disley Initial Production Module in Saskatchewan, completing the first of three planned horizontal wells (Producer Well 1), installing an 11-stage packer system and achieving contact with approximately 95% of the target clay seam.
The company has also spudded the second horizontal well (Producer Well 2), which will be followed by an injector well to establish the solution mining plane. The IPM is designed to produce 125,000 TPA of soluble-grade potash starting as targeted in Q1 2027 and is the first of three planned facilities. According to Buffalo, the broader Disley Project, as outlined in its May 2026 PEA, contemplates up to 1,125,000 TPA of potash, with a standalone IPM payback period estimated at about 12 months from production and an after-tax NPV of US$1.1 billion and IRR of 30%, while noting that no mineral reserves have been established and there is no guarantee production will be achieved.
Positive
- First horizontal producer well completed with ~95% target clay seam contact, supporting mining plane establishment
- 11-stage packer system installed on Producer Well 1 to collect KCl-rich brine across the mining plane
- Second horizontal well spudded as part of three-well Phase 2 drilling campaign
- IPM designed capacity of 125,000 TPA potash with targeted first production in Q1 2027
- Full Disley Project plan contemplates up to 1,125,000 TPA potash across three facilities
- PEA economics indicate after-tax NPV of US$1.1B and IRR of 30% at full build-out
Negative
- IPM production decision not based on a feasibility study, with no mineral reserves established at Disley
- PEA is preliminary and includes inferred resources without demonstrated economic viability
- Company warns of higher risk of economic and technical failure versus projects with feasibility studies
- Performance of unproven Horizontal Line-Drive method at commercial scale identified as a key risk
- Risk that recoveries, production rates, or costs differ materially from PEA assumptions
- Potential that IPM production may not become sustainable or profitable, impacting revenue and cash flow
AI-generated analysis. How Rhea-AI works. Not financial advice.
Highlights
- Completed first of three horizontal wells as part of the second phase (Horizontal Line-Drive drilling);
- Successfully installed packers for KCl-rich brine collection along the horizontal production well;
- Successfully made contact with approximately
95% of the target clay seam, confirming successful placement of the well; and - Spudded second horizontal well as part of the second phase.
Saskatoon, Saskatchewan--(Newsfile Corp. - August 26, 2026) - Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (FSE: VU5) (the "Company" or "Buffalo") is pleased to announce that it has commenced the second phase (Horizontal Line-Drive drilling) of the buildout of the Initial Production Module ("IPM") located at the Company's flagship Disley property in Saskatchewan (the "Disley Project"). During this second phase, the Company has completed the first of three planned horizontal wells (the "5D15-10 Well" or "Producer Well 1"), installed packers along that well for KCl-rich brine collection, made contact with approximately
Mr. Quinton Hardage, P.Eng., PMP, President and Chief Operating Officer of the Company, commented: "We are extremely pleased to have completed our first horizontal well ahead of schedule and under budget – now the third consecutive well we've delivered on that basis - all while making contact with approximately
Phase 2: Horizontal Line-Drive Drilling
The second phase of the IPM buildout involves drilling three horizontal wells that form the downhole infrastructure used to establish a solution mining plane in connection with Buffalo's patented Horizontal Line-Drive mining method at the IPM. Two of the three wells are designed to be producer wells that bring KCl-rich brine to surface after crossing the mining plane from the center injector well, which introduces NaCl brine sourced from the previously drilled 15-10 source well into the mining plane (see Figure 1).
Completed drilling of first horizontal (5D15-10; Producer Well 1) – Further to the Company's August 18, 2026 news release (see release), drilling was completed at the 5D15-10 Well (Producer Well 1), a 565-m lateral well and the first of the three horizontal legs of the underground IPM design. This well successfully made contact with approximately
Packer installation on first horizontal well (5D15-10; Producer Well 1) – The Company has successfully installed an 11-stage packer system along Producer Well 1. The packers are designed to act as collection points that produce KCl-rich brine to surface once it has crossed the mining plane from the center Injector Well. Packer installation is a vital function of Buffalo's downhole infrastructure, operating as the mechanism for controlling the flow of brine across the mining plane (see Figure 1).
Commencement of second horizontal well (4D15-10; Producer Well 2) – The Company has spudded the 4D15-10 Well (Producer Well 2), the second of the three horizontal wells, which is intended to serve as the second producer well in the IPM that collects KCl-rich brine from the mining plane. This well will be followed by the 1D15-10 Injector Well that will facilitate the injection points through which brine enters the mining plane on the way to the producer wells (see Figure 1).
Figure 1: Disley Initial Production Module Design
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Disley Project Development Plan
The IPM is designed to produce 125,000 tonnes per annum ("TPA") of soluble-grade potash and is the first of three planned solution mining facilities at the Disley Project. The IPM has a lower initial CAPEX requirement compared to the full Disley Project build-out and is targeted to reach first production in Q1 2027. At full build-out comprising the IPM and two 500,000 TPA mines ("Disley East" and "Disley West"), the Disley Project would be expected to produce up to 1,125,000 TPA of potash, as contemplated in Buffalo's preliminary economic assessment titled "NI 43-101 Preliminary Economic Assessment Technical Report on the Disley Potash Project, Saskatchewan, Canada" dated May 21, 2026, and effective April 15, 2026 (the "PEA"), a copy of which is available on the Company's SEDAR+ profile at www.sedarplus.ca. On a standalone basis, the PEA estimates a payback period for the IPM of approximately 12 months from the start of production.(2) However, there is no guarantee that the Company will be able to achieve production.
The Company's production decision for the IPM is not based on a feasibility study with mineral reserves demonstrating economic and technical viability, and such production decisions are historically associated with a higher risk of economic and technical failure (see "Note 3 – Production Decision Cautionary Statement").
The IPM is intended to establish initial cash-flow from production at a lower upfront capital cost, while building the operational and technical foundation for full-scale development. Development of the IPM is anticipated to be broken down into five phases:
- Source and disposal wells (complete);
- Horizontal Line-Drive ("HLD") drilling (ongoing);
- Brine circulation;
- Site development; and
- Surface processing.
Disley Project - General Overview
The Disley Project is located approximately 50 kilometers northwest of Regina and covers 10,610 hectares (Crown and Freehold mineral rights). The property is situated immediately to the east of the K+S Bethune potash solution mine and north of the Mosaic Belle Plaine potash solution mine – both of which are among the largest producing potash solution mines in the world. In the opinion of management, the Disley Project is in one of the most favorable areas of Saskatchewan for potash solution mining (see Figure 2) as evidenced by the success of these neighboring operations.(1)
On May 22, 2026, Buffalo released the results of its maiden NI 43-101 Mineral Resource Estimate and PEA for the Disley Project, prepared by Micon International Co Limited. The PEA outlined a phased, modular development plan contemplating full-scale production of up to 1,125,000 TPA of potash across three solution mining facilities, with an estimated after-tax net present value (NPV) of US
Figure 2: The Disley Property Situated Amongst Major Potash Solution Mines(1)
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About Buffalo Potash
Buffalo Potash is an emerging Saskatchewan-based potash developer pursuing a modular approach to selective solution mining through its patented Horizontal Line-Drive (HLD) technology. Buffalo is advancing the Disley Project – located adjacent to two of the most prominent currently producing potash solution mines in the world – with the objective of establishing capital-efficient, lower-impact potash production in one of the world's leading potash jurisdictions.
Qualified Person
The technical information in this news release has been reviewed and approved by Douglas F. Hambley, PhD, PE, P.Eng., PG, an independent consultant to the Company, who is a Qualified Person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. This news release does not contain new technical disclosure beyond information previously disclosed in the NI 43-101 technical report for the Disley Project filed under the Company's profile on SEDAR+ at www.sedarplus.ca. Readers are referred to that technical report, prepared by Micon International Co Limited, for complete details of the Mineral Resource Estimate and Preliminary Economic Assessment, including all data verification, methodology, assumptions, and qualifications.
All related and pertinent information has also been reviewed for this news release by Jared Galenzoski, P.Geo, FIMMM as an independent consultant to the Company who is a Qualified Person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Galenzoski is an expert in several potash-related fields including the drilling of potash horizontal wells and solution mining operations.
Contact
Steve Halabura | Chief Executive Officer & Director
Email: steve@buffalopotash.ca | Phone: 1-306-220-7715
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notes
(1) The K+S Bethune potash solution mine and the Mosaic Belle Plaine potash solution mine (together, the "Adjacent Properties") may each be considered an "adjacent property" (within the meaning of NI 43-101) to the Company's Disley Project. The Company has no interest in either of the Adjacent Properties. The Company believes this context is useful in illustrating the proven endowment of the district, while noting that mineralization on adjacent or nearby properties is not indicative of mineralization on the Company's Disley Project. There is no guarantee that the Disley Project will yield comparable results to either of these mines.
(2) The PEA was prepared by Micon International Co Limited in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is preliminary in nature. The PEA includes inferred mineral resources, which are considered too speculative geologically to have the modifying factors and economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the results of the PEA will be realized. Readers are encouraged to read the technical report filed under the Company's profile on SEDAR+ at www.sedarplus.ca in its entirety, including all qualifications, assumptions, and exclusions that relate to the PEA.
(3) Production Decision Cautionary Statement: The Company's decision to proceed with development of the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. No mineral reserves have been established at the Disley Project, and the PEA is preliminary in nature (see Note 2). Historically, mineral projects advanced to production without first establishing mineral reserves supported by a feasibility study have a higher risk of economic and technical failure. Specific risks associated with the Company's production decision include, but are not limited to: 1) grade, continuity, or thickness of mineralization that differs from the Mineral Resource Estimate; 2) performance of the Company's Horizontal Line-Drive mining method, which has not been operated at commercial scale, that is not as anticipated; 3) recoveries, production rates, or capital and operating costs that differ materially from the PEA; and 4) production during the IPM that does not become sustainable or profitable, which would materially and adversely affect the Company's ability to generate revenue and cash flow.
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. Forward-looking information is generally identifiable by the use of words such as "believes," "may," "plans," "will," "anticipates," "intends," "could," "estimates," "expects," "forecasts," "projects," or similar expressions, and the negative of such expressions.
Forward-looking information in this news release includes, but is not limited to, statements regarding: the timing, sequencing, and completion of the IPM development plan, including the drilling of the source, disposal, and horizontal wells, the development of the mining plane, site development, and the installation and commissioning of processing equipment; the Company's intention to inject NaCl brine from the Injector Well to clean out the clay along the target clay seam and connect brine flow to the producer wells, thereby creating surface area for the dissolution of KCl in the adjacent rock; the anticipated drilling and completion of the remaining horizontal wells, including the 1D15-10 Injector Well, and the completion of the three-well Horizontal Line-Drive drilling campaign; the intended function of the installed packers to serve as collection points that produce KCl-rich brine to surface after it crosses the mining plane; the establishment of a solution mining plane at the IPM using Buffalo's patented Horizontal Line-Drive mining method; the IPM's designed production capacity of 125,000 TPA of soluble-grade potash and the anticipated payback period for the IPM; the anticipated timing of first production from the IPM; the anticipated timing and phasing of construction and commercial production for the IPM, Disley East, and Disley West; the preparation, timing, and expected benefits of a concurrent feasibility study for the full build-out of the Disley Project; the results, assumptions, and projections contained in or derived from the Mineral Resource Estimate and PEA for the Disley Project, including projected production rates and timing of production; expectations regarding the Disley Project's potential for solution mining; the Company's broader development plans and strategy for the Disley Project; and the fact that the Company's production decision for the IPM is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, and the associated increased risk of economic and technical failure.
Forward-looking information is based on management's reasonable assumptions, estimates, analysis, and opinions made in light of its experience, perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are relevant and reasonable in the circumstances as of the date such statements are made. These assumptions include, but are not limited to, assumptions regarding geological continuity, potash grade and thickness, the applicability of historical data, the performance of solution mining methods, costs of production, the availability of services and equipment, the receipt of required permits and approvals, and the availability of financing on acceptable terms.
Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: the inherent uncertainty of PEA-level studies and the possibility that actual capital costs, operating costs, and production rates differ materially from estimates; risks related to exploration and development activities; risks related to the timing and completion of lease construction, rig mobilization, and drilling operations, including the availability and performance of drilling contractors, equipment, and services; uncertainty in geological interpretation; risks related to the development, commissioning, and operation of novel mining technology; risks inherent to solution mining operations and new or emerging technologies; regulatory approvals and permitting timelines; commodity price volatility; availability of capital; and general economic, market, and business conditions.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events may differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this news release, and the Company disclaims any obligation to update or revise such information, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311563