TOH:CC - Helium Company Enters Joint Venture In Major Arizonan Natural Gas Field While Markets Are Still Suffering A Shortage
(NewsDirect)
By David Willey, Benzinga
Helium company TotalHelium Ltd. (OTCQB: TTLHF) has announced a joint venture withcompanies Butler Minerals I and Mid America Exploration for heliumexploration and production in a major Arizonan field site.
The helium market is worth $4.4 billion globally, and there is a sustained demand as the marketis expected to grow at over 12% annually between 2022 and 2023.However, the global market is currently experiencing a shortage of helium, which is a non-renewable natural gas. Historically, theUnited States government has been a majorcontributor to global helium supplies, however, these supplieshave been depleted in recent years. By mining helium fields in theU.S., private companies can potentially solve supply chain problemsand provide America with a greater degree of heliumindependence.
Theuses of helium go far beyond its well-known role in the balloonindustry. Helium finds many uses, including in welding, cryogenics, nuclear reactors, medical devices,semiconductor manufacturing, national defense systems and evenrockets.
The current state of thehelium market is one reason the company Total Helium is excited aboutits new joint venture in Arizona. Total Helium is a company thatspecializes in the exploration, production and storage of helium. Thecompany believes this project will boost helium production volume andsales price for the company, and that it includes future opportunitiesfor expansion.
Total Helium Acquisition And Opportunities ToExpand
The dealgives Total Helium a 50% interest in the Pinta South project, alongwith the acquisition of several existing wells. By the second quarterof 2023, Total Helium plans on having 20 operational wells in the27,000-acre project, located in Holbrook Basin, Arizona. The projectalso has opportunities to expand to over 150 potential drill sites.
Pinta South is ahelium-rich site, with gas concentrations at 5-8%, significantlyhigher than the average field’s helium concentration of up to 3%. The shallow target in thefields allows the company to keep drill operations to approximately$220,000. Total Helium plans to continue well development in 2023, andit is in the process of raising $15 million in capital through thesale of new shares to fund this project.
“Total Helium is thrilled to announce thisjoint venture. This JV is a great complement to Total Helium’sstrategy of acquiring already producing assets as we build upon ourexisting relationship with our industrial gas partner. I have theutmost respect for our joint venture partners, Butler Minerals and MidAmerica Exploration, who are proven helium finders and producers. Itis my belief that this joint venture will create significant value forour shareholders for many years to come,” commented Total HeliumCEO, Robert B. Price.
Other companies in the helium industry include DesertMountain Energy Corp. (OTCQX: DMEHF) and Air Products &Chemicals Inc (NYSE: APD).
Want to learn more about Total Helium? Visit itswebsite .
This article wasoriginally published on Benzinga here .
TotalHelium is a helium exploration, production and storage company focusedon bringing a reliable domestic supply of helium to the US market. Thecompany’s current footprint includes the Holbrook Basin in Arizonaand the Hugoton Gas Field in Kansas. In addition to its heliumproduction activities, Total Helium is establishing an undergroundhelium storage facility with its industrial gas partner to ensure thatthe United States has a stable supply of helium at all times into theforeseeable future.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.Statements included in thisannouncement, including statements concerning our plans, intentionsand expectations, which are not historical in nature are intended tobe, and are hereby identified as, “forward-looking statements”.Forward-looking statements may be identified by words including“anticipates”, “believes”, “intends”, “estimates”,“expects” and similar expressions. The Company cautions readersthat forward-looking statements, including without limitation thoserelating to the Company's future operations and businessprospects, are subject to certain risks and uncertainties that couldcause actual results to differ materially from those indicated in theforward-looking statements.
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