**Helium Evolution - $HEVI.V imminent breakout expected**
Helium evolution - $HEVI.V just found helium in their 3rd consecutive well.
1st well drilled in November completed confirmation testing with 0.95% helium and steady flow rates.
2nd well was drilled in the same formation, 6km North of the first well. It encountered helium as well with completion testing results anticipated mid February.
3rd well drilled into the same formation as well just encountered helium. Completion testing results should be known mid/late March.
**No less than 5 more news releases are coming in the next couple months!**
Yesterday - Helium confirmed in well #3
Mid February - completion testing results on the second well
Late February - Q4 financials. HEVI has lots of cash($7million as of Q3) with minimal debt.
Late March - completion testing results on the 3rd well
April? - Estimated time for production
Somewhere in there will be a 2024 guidance update!
**A bit about HEVI.V**
The company has the mineral rights to 9million acres of land and is drilling in Southern Saskatchewan.
They have a top partner in the helium industry with North American helium, which currently has 7 helium production facilities(3 of which came online in 2023) and 17 producing wells supplying 5%? Of the North American market.
$HEVI land claims are located right between $RHC Climax and Omega wells. This is important because RHC CEO has quoted this as the “Nazare Zone”
$RHC CEO - “It is certainly noteworthy that we encountered what appears to be the Nazare zone, first discovered by Royal at Climax more than 250 km southwest of Ogema. The implications on the potential lateral extent of our helium bearing lands are significant and far exceeds our expectations.”
HEVI.V gameplan is to pretty straight forward. Their deal with North American helium was to drill 7 wells with North American helium picking up 80% of the costs of the well drills and bringing any helium wells to production. HEVI keeps the other 20%. This agreement has been extended somewhat to include any subsequent drilling in the current formation as per the last press release. Now HEVI.V is free to drill any other wells on their land, keeping 100% of revenues from any discovered helium wells.
What this has allowed HEVI.V to do is secure free cash flow in order to keep drilling and exploring the property. It is too early to give a definite $amount until after completion testing is finalized, but helium prices have tripled in the last few years… up from $250/MCF back in 2020)
To recap, HEVI.V has hit helium in their last 3 helium wells. They have $7million of cash in the bank, minimal debt and operating expenses as well as the largest helium producing partner in Canada with North American helium. Until completion testing is done(which will be mid February on the second well and mid/late March on the 3rd well) it is not possible to give an accurate estimate on the revenue this will generate for HEVI once these wells are put into production. With North American helium building the processing facility, there are no up front costs to HEVI.V that I am aware of. Helium is also on the Canadian critical minerals list, and as of March 2023 was out on the Alberta critical minerals list, which opens the door to possible government funding.
Risks at this point is that the completion testing for well #2 and/or well #3 show poor results. Considering well #1 was tested and completion testing results were 0.95% helium and steady flow rates, I have reasonable expectations these next two wells will show similar, if not better results.
Current share price is 22c - roughly 100million shares and a $22million market cap.
**Other information about the “Nazare Zone” and a link to HEVI.V land map with a description of how massive this zone is.**
**HEVI.V/NA helium land map.** If you look at the map in the link below, the pinkish/purplish at the US border directly under Swift current is RHC land claims. The far bottom one is RHC Val-Marie. The one above that, where you see the circles is RHC climax wells. The pink/purple Way to east where a blue dot is touching it. That is the RHC Omega wells.
All the yellow in between, that is the “Nazare zone” and yellow is Helium evolution - HEVI.V (FYI - Blue is $HECO)
https://images.app.goo.gl/KAexjxVqvnQsDVes6
HEVI.V owns most of the mineral rights between the RHC Climax and Omega wells, just North of Val-Marie. This is why these news releases are important to describe the significance of what is under HEVI.V land claims.
https://www.akapenergy.com/post/royal-discovers-a-new-field-with-0-76-helium-at-omega-1
https://pipelineonline.ca/royal-helium-develops-plan-for-maximizing-helium-extraction-from-nazare/
**More information about North American Helium**
https://ca.finance.yahoo.com/news/north-american-helium-successfully-brings-112500026.html