TSXV:TOH - Post Discussion
Post by
MarketMakerss on Oct 24, 2023 4:33pm
9 Wells Consistently Producing 232 Mcf/d with High Helium
Rapidly scaling helium producer, Total Helium (TOH.v TTLHF), has emerged as a high potential opportunity due to its remarkable helium concentrations found 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 over the 3% concentrations seen among other producers.
Capitalizing on these 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.
As the monsoon season in Arizona caused several flash flooding events, completion and production efforts were hindered resulting in an initial delay in bringing increased production online, however, TOH has developed long-term solutions to mitigate weather-related delays in the future.
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.
Posted on behalf of Total Helium Ltd
Be the first to comment on this post