Royal Helium's high margin production activities and corresponding operating cash flow will be supportive of the Company's plans to add several additional purification facilities in the upcoming calendar year.
This will be difficult but wonderful if they can pull it off. They have to test Val Marie and Ogema, drill and test a well on new Alberta acreage. Drill and test a Cadillac well. Then they have to see if they can somehow move ahead with a horizontal well to further prove up all the work they have done on the Nazare formation, bigger and badder in terms of total resource and production potential. Maybe this can happen and they can stabilize the finances and head off on a growth path. They will have more than a million a month coming in. They are paid when the truck leaves the plant. The trucking costs are paid for. The liquification costs in Colorado are paid for. I am hoping the next step is in Saskatchewan so they can be an important supplier there. But the Alberta opportunity on the new acres may prove best short term move depending on helium concentration.