Global Helium Enters US Market with Acquisition Global Helium Enters US Market with Acquisition of Proven Helium Production
Global Helium Corporation
CALGARY, Alberta, May 18, 2022 (GLOBE NEWSWIRE) -- Global Helium Corp. (CSE: HECO) (OTC: HECOF) (the “Company” or “Global”), one of Canada’s largest helium exploration and development companies, is pleased to announce that, after months of intense technical and commercial evaluation, the Company has acquired a very large position in a known, helium-proven geological structure in Montana, known as “Pale Rider.” The acquisition, and subsequent tactical land leasing program, collectively include seventeen highly prospective, contiguous square miles on a known helium prospect, which has previously produced and tested 1.2% helium.
This strategic acquisition is expected to be the first of several in the United States, as the Company pursues its goal of becoming one of the largest helium producers in North America, intending to provide high-quality helium gas and liquid to pre-existing downstream partners.
Global’s team had previously acquired and studied all existing seismic and technical data prior to making the Pale Rider acquisition. Given the existence of a previously drilled well that produced non-combustible gas with a significant helium concentration, the Company is confirming several target locations and is working to procure a surface lease with the intention of mobilizing a drill program thereafter.
Highlights of Pale Rider:
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The pre-existing well, drilled by Texaco in 1948 and located on Global’s lands, tested over 1.3 mmcf/d of non-combustible gas with 1.2% helium and a very high percentage of nitrogen. Only trace amounts of methane and CO2 were present. An offset well drilled in 1958 also confirmed potential reservoir in deeper formations that are expected to be prospective for helium.
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Using extensive seismic coverage, the Company has mapped an 18 square mile (11,500 acre) helium pool, with greater than 90% of the pool covered by the land recently acquired by Global. The Company sees strong potential for significant helium volumes, as the structure is a very large anticline related to a simple basement-involved thrust along the northern edge, which is well defined by seismic.
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The first of several drilling locations has already been identified and the Company has commenced operations to ready the location for drilling.
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Infrastructure in the area is plentiful, in part, thanks to extensive historical oil and gas development nearby. Roads, pipelines (if required), welcoming landowners, readily available services and other general infrastructure are all easily accessible in the area.
Wes Siemens, President of Global Helium, states, “We are beyond excited about our initial entry into the United States and the multitude of opportunities that our team is evaluating to continue our aggressive expansion in North America. Months of technical work and negotiations have finally resulted in our first step into the United States on a structure with proven helium production. We have concurrently advanced our Saskatchewan areas to the drill ready stage, which is a testament to the strength and depth of both our asset base and the Global team.”
Corporate Development Plans:
In addition to the strategic acquisition above, the Company will focus on achieving the following milestones in both Canada and the United States in the short term:
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Aggressive pursuit of acquisitions of proven, helium-rich lands with either known helium, previous helium production, or both.
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Expanding the Company’s already massive 1,500,000-acre position in Saskatchewan, Canada, where total royalties are less than 5%, leaving the Company with better than 95% net revenue interest.
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Finalization of our extensive seismic acquisition program.
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Preparation of surface leases and access to multiple drilling sites.
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Drilling and testing of multiple prospects identified on the Company’s lands.
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Undertaking of surface engineering and preparation work subsequent to ordering, securing and installing helium processing equipment.
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Achieving helium production and executing helium offtake agreements with existing and new downstream partners.
Additionally, the Company has granted 1,300,000 stock options to certain directors, officers, employees and consultants, issued pursuant to the Company’s stock option plan. The options vest over a 12-month period, are exercisable at a price of $0.41 per share and expire in May 2027. The shares issuable upon exercise of the options may not be traded for 4 months and one day from the date of grant.
ON BEHALF OF THE BOARD OF GLOBAL HELIUM CORPORATION
“Wes Siemens”
Wes Siemens, P.Eng.
President
For more information:
Walter Spagnuolo, Investor Relations
Tel: +1 (877) 816 8163
relations@globalhelium.com
..........Bluetick