Global Helium Adds New Land Position in Alberta
CALGARY, Alberta, Jan. 10, 2023 (GLOBE NEWSWIRE) -- Global Helium Corp. (CSE: HECO) (OTC: HECOF) (the “Company” or “Global”), one of North America’s largest helium exploration and development companies, is pleased to announce that on January 6, 2023 the Company entered into an agreement with one of Canada’s largest mineral landowners (the “Agreement”) to establish a significant land position in a proven helium producing region of Southeast Alberta along the Manyberries Helium trend.
The Agreement provides the Company with an option to lease up to 32 sections (20,480 acres) of contiguous land on a known helium trend, immediately offsetting – and surrounding – a proven helium well. Public data shows the offsetting well was tested for helium in 2018 and showed a concentration of 1.2% (a helium content of 0.3% or more is considered necessary for commercial helium extraction).
The Company has already identified a drilling location and the permitting process for Global’s initial test well is under way. The Company expects to commence drilling sometime in late Q2 or early Q3, 2023, due to the high activity level and rig availability in the area.
Jesse Griffith, President of Global Helium stated, “We are very excited to expand our land base into this well-known helium producing region of Southeastern Alberta. Technically, we are in an excellent, proven helium trend and our team has identified this very specific area of that trend as being clearly high potential. The team is very eager to expand our position in this area and, importantly, to executing on our corporate objective of drilling and testing helium prospects in early 2023.”
Analysis of public data (AER Public Data) shows the Manyberries helium trend is one of North America’s most prolific helium producing regions, with multiple high-rate producing wells containing helium concentrations over 1.5%. Thor Resources Inc., a private helium exploration and production company, has produced 52,890 mcf of helium from two wells brought on production in late 2020 and has recently drilled, cased, and begun testing an additional helium well in the region. Avanti Helium Inc. also licensed a new well in the area in October 2022.
A recent BNN Bloomberg article notes that current spot prices for helium are greater than US$1,000 per mcf and the growing helium market is expected to remain undersupplied for the foreseeable future.
The Manyberries helium trend is a mature natural gas field, which allows Global Helium to leverage existing wellbores and infrastructure, which management further expects to reduce risk, capital costs, field wait times and ultimately increase returns.
According to the Agreement, the Company will have the option to drill one helium test well in 2023 to earn a lease on the spacing unit of the test well and will have the option to enter new helium leases on 20,480 acres of land offsetting the test, subject to a 7% lessor royalty and $50/acre bonus consideration. There are no royalties payable to the Crown.
ON BEHALF OF THE BOARD OF GLOBAL HELIUM CORPORATION
For more information, contact:
Walter Spagnuolo, Investor Relations
Tel: +1 (877) 816 8163
mcf = thousand cubic feet
mmcf = million cubic feet
bcf = billion cubic feet
About Global Helium (CSE: HECO) (OTC: HECOF)
Global Helium one of Canada’s largest helium exploration and development companies, focused on the exploration, acquisition, development, and production of helium to meet the needs of increasing helium demand and shrinking helium supply in North America and around the world. The Company has a seasoned team of industry professionals and technical experts and has established connections with North American and international helium buyers. Together, the team has captured 100%-owned permits encompassing over 1.5 million acres prospective for helium in Saskatchewan’s well-established helium fairway and has recently acquired a significant, proven asset in the State of Montana.
Find out more at: https://globalhelium.com/.
No securities regulatory authority has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release.
This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this internal announcement are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the failure to satisfy the conditions of the relevant securities exchange(s) and other risks detailed from time to time in the filings made by the Company with securities regulators. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this internal announcement are expressly qualified by this cautionary statement. The forward-looking statements contained in this internal announcement are made as of the date of this internal announcement and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.