Helium's supply shortage & TOH's opportunity Worth $4.4B globally, the helium market is sustaining significant demand despite the current supply shortage and dwindling supplies of the non-renewable natural gas, resulting in a helium supply crisis that is squeezing helium prices higher.
With no substitutes for helium, its broad and growing range of applications from healthcare to semiconductors to space exploration is continuing to expand, making this a bigger and more imminent issue than many realize.
Given this, the helium industry is ripe for growth and Total Helium (TOH.v TTLHF) is one company that is positioned for significant growth.
Following its strategy of acquiring already producing assets, eliminating a significant amount of risk, TOH recently completed the acquisition of a JV interest in the Pinta South Helium Project in Arizona with Bulter Minerals and Mid America exploration.
Pinta South is a helium-rich site located in the Holbrook Basin ,a major Arizonan field side, with two producing wells and 8 additional wells that are being connected to a helium processing plant.
Notably, the gas concentrations at Pinata South are 5-8% which is significantly higher than the average helium concentration of up to 3%.
Partnered with the largest industrial gas company in the world, Linde ($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, making the economics very robust for this project.
For example, the two wells have already produced 50,000mcf of helium at 8% which amounts to over $9M of helium in three years just from the Linde partnership.
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.
Strongly positioned to support the rapid growth of America’s high tech industries that depend on helium, TOH provides a compelling investment opportunity to capitalize on a high growth industry.
For more information, check out this interview with TOH's CEO and Director, Robert Price, from the Deep Dive: https://thedeepdive.ca/total-helium-tackling-the-helium-shortage-with-robert-price/
Posted on behalf of Total Helium Ltd