TSXV:TOH - Post Discussion
Post by
MarketMakerss on May 10, 2023 4:44pm
TOH's potential for significant growth
Supply disruptions have forced a 'helium shortage 4.0', resulting in a helium supply crisis that is squeezing helium prices higher. On top of that, helium’s broad and growing range of applications from healthcare to semiconductors to space exploration continues to expand making this a bigger and more imminent issue than many realize.
Worth $4.4B globally, the helium market sustains significant demand despite the current shortage and dwindling supplies of the non-renewable natural gas.
Given this, the helium industry is ripe for growth and Total Helium (TOH.v TTLHF) is one company that is positioned for significant growth with its strategy of acquiring already producing assets, eliminating a significant amount of risk.
TOH recently completed the acquisition of a JV interest in the Pinta South Helium Project in Arizona with Bulter Minerals and Mid-America exploration.
Located in a major Arizonan field side, the Holbrook Basin, Pinta South is a helium-rich site with two producing wells and 8 additional wells that are being connected to a helium processing plant. Notably, the gas concentrations are at 5-8% which is significantly higher than the average helium concentration of up to 3%.
By the second half of 2023, TOH plans to have 20 operational wells in the 27,000-acre project with the opportunity to expand to over 150 potential drill sites.
Partnered with the largest industrial gas company in the world, Linde ($LIN, $170+B market cap), who has committed to fund the pipeline expansion for the project and pay $500/Mcf for the first 10 wells, TOH is strongly positioned to support the rapid growth of America’s high tech industries that depend on helium.
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