Global Helium Corp. acquires production-ready U.S. helium property
by CM Staff
Using existing cash on hand, the recently drilled well can be immediately recompleted and a production facility can be purchased “off the shelf” according to the company.
CALGARY — Global Helium Corp., a helium exploration and development company, announces it has acquired over 15 contiguous sections of a previously tested and proven helium property in the Rudyard area of Montana. This second US acquisition is a helium-proven structure, which has previously produced and tested 1.3% helium at significant flow rates.
Through an option agreement, the Company can elect to increase its landholdings by over 60% to over 24 sections. The option agreement has been signed with a private company and can be exercised at the Company’s election, if results meet expectations.
There are two pre-existing wells on the property, both of which tested extremely favorably for both helium content and overall flow rates. The first well, drilled by Texaco in 1960, flowed at 4.3 mmcf/day with 1.3% of that gas stream being helium, which calculates to over 55 mcf/day of helium.
Using existing cash on hand, the recently drilled well can be immediately recompleted and a production facility can be purchased “off the shelf” given that there was no material CO2 or methane in the gas streams, meaning extraction and purification would be technically simple and low cost. To this end, the Company reports that it has already engaged global industrial gas suppliers and off-takers, specifically to commence production at Rudyard.
Jesse Griffith, President of Global Helium, commented, “The Rudyard acquisition is a monumental step forward for our shareholders, as it provides an immediate pathway to thrust Global into a helium producing, cash-flowing company. The acquisition also brings an additional core area into the Global portfolio that has been substantially de-risked and is already set for expansion through the option agreement. We now have multiple assets with proven helium production and, when we combine those with the scale and potential of our Saskatchewan land base, the future cash flow and massive expandability continues to excite our team and shareholders.” Griffith added, “I am very happy to see the Global team continuing to meet or exceed the corporate development plans that were communicated previously. Communicating our plans, setting expectations and exceeding those expectations is a core focus for the Global team and is something we will continue to do going forward.”
High purity helium is used for manufacturing of semiconductor chips, chromatography and semiconductor processing, lab research, MRIs, a shielding gas in welding, a cooling gas for fiber optics, gas chromatography, and mass spectrometry.
Demand for helium continues to increase, driven by semi-conductor manufacturing and MRI growth, while security of supply is increasingly under pressure.