Total Helium Ltd V.TOH

Producing Amid Global Helium Shortage

[MarketMakerss]

In the midst of the ongoing global helium shortage, various industry associations and organizations are advocating for a halt to the impending sale of the Federal Helium Reserve (FHR).

This sale carries substantial risks of disrupting the US helium supply chain, thereby jeopardizing critical sectors such as healthcare, semiconductors, defence and aerospace. The FHR currently serves as a cornerstone of the helium supply, accounting for 21-30% of the nation's helium inventory. (Source: https://www.gasworld.com/story/cga-and-other-industry-associations-call-on-the-white-house-to-halt-sale-of-the-federal-helium-reserve-system/2129180.article/)

Amid this critical scenario, Total Helium (TOH.v TTLHF), has emerged as a rapidly scaling helium producer, boasting remarkable helium concentrations at its Pinta South Project in Arizona's helium-rich Holbrook Basin.

Covering an expansive 27,000 acres, Pinta South boasts helium concentrations ranging from 5% to 8%, a significant improvement compared to the 3% concentrations seen among other producers.

Leveraging these high concentrations, TOH formed a strategic partnership with Linde, the world's largest industrial gas company, to sell its helium at a rate of USD$500 per MCF. This partnership has secured the economic viability of Pinta South with a rapid payback period ranging from a few weeks to a maximum of three months.

Latest Operational Update

To date, 19 wells have been drilled with 9 connected to a newly constructed 6-mile pipeline that transports gas to Ranger Development, a third-party processing facility. The production is then being sold to a large industrial gas company via an offtake agreement.

Notably, two of the 9 connected wells have consistently produced 232 Mcf/d with high helium concentrations between 7.58% and 7.83%. During the initial testing phase of three additional wells, total production rose to 450 Mcf/d in line with expectations.

An additional 10 wells are in various stages of completion and pipeline connections.

Furthermore, Numerous high-grade drilling locations have additionally been identified and TOH has filed for an additional 28 drilling permits, expected to be approved within the next 30-60 days.

On track to have 30 wells operational by year-end, TOH is making significant progress at Pinta South ahead of its final trajectory to expand operations to encompass over 300 wells.

For more information, check out TOH CEO Robert B. Price's latest interview with Stocks To Watch discussing their current production capacity, low-cost and low-risk strategies and expansion plans with Stocks to Watch: https://www.youtube.com/watch?v=6GOdPX_U1jU&ab_channel=StocksToWatch

Posted on behalf of Total Helium Ltd.