As a critical component in various applications such as MRI machines, semiconductor manufacturing, and fiber optics, the demand for helium is constantly on the rise, with its growing range of applications continuing to expand.
Worth $4.4B globally, the helium market is facing a current supply shortage due to dwindling supply, resulting in a helium supply crisis that is squeezing helium prices higher.
With this, the limited supply of this non-renewable gas results in helium extraction and production yielding significant returns as prices increase in the coming years.
However, this is a bigger and more imminent issue than many realize as helium has no substitutes.
Total Helium (TOH.v TTLHF) is one company that is positioned for significant growth with a strategy of acquiring already producing assets, eliminating a significant amount of risk.
Today, TOH provided an operational update from its recently acquired JV for the Pinta South Project in located in Arizona's Holbrook Basin, a major and helium-rich field site.
An additional 3 holes have been drilled and are awaiting completion following TOH's acquisition of the project which initially consisted of 10 total wells, two producing wells and 8 additional wells to be connected to a helium processing plant.
Plus, an initial soil gas survey has been completed with a follow up study underway to optimize drilling locations.
It's notable too that the gas concentrations at Pinata South are 5-8% which is significantly higher than the average helium concentration of up to 3%.
TOH Director and CEO, Robert B. Price, commented: "The fact that we hit the ground running on our joint venture in Arizona is a sign of things to come as we enter a new chapter in Total Helium's evolution. We appreciate the efforts of our joint venture partners as we work together to drill new wells, install pipeline, and bring helium to a market that desperately needs it,"
Partnered with the largest industrial gas company in the world, Linde ($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/
Pinta South Operational Update: https://www.totalhelium.com/cool_timeline/total-helium-provides-operational-update-on-pinta-south-project/
Posted on behalf of Total Helium Ltd