TSXV:TOH - Post Discussion
Post by
MarketMakerss on Oct 26, 2023 4:44pm
Producing Amid Global Helium Shortage
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).
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.
Posted on behalf of Total Helium Ltd.
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