Despite being the second most abundant element, helium can only be economically extracted from subsurface gas reservoirs. Due to its significant economic value and non-renewable nature, the storage of helium plays a crucial role. However, the emergence of the hydrogen economy and the federal government's decision to withdraw from the sole operational underground helium storage facility in Amarillo, Texas, present new challenges for global industrial markets.
Total Helium (Ticker: TOH.v or TTLHF for US investors) aims to address these challenges by leading the development and operation of underground storage solutions for helium and hydrogen. Through a partnership with a multinational industrial gas company, TOH plans to establish an underground helium storage facility that will rival the U.S. Federal Helium Reserve's successor. TOH will have a 50% ownership stake in the facility and will operate it.
TOH also recently acquired a stake in the Pinta South project, a natural gas field rich in helium. Through a joint venture agreement, TOH now holds a 20% interest in two producing wells and a 50% interest in eight additional existing wells.
The Pinta South project boasts helium concentrations ranging from 5% to 8%, making it a valuable asset. Furthermore, the shallow-producing formation of the project offers favorable conditions for cost-effective drilling and completion processes.
Yesterday, TOH provided an operational update on its Pinta South Project. Pipeline construction on the project is currently underway and five wells are already connected to the processing facility. Additionally, three new wells have been drilled and await completion.
TOH is also conducting a soil gas survey to optimize drilling locations and enhance production rates. The survey will run from mid-May to early June 2023.
For more on TOH's progress at Pinta South click here: https://www.totalhelium.com/cool_timeline/total-helium-provides-operational-update-on-pinta-south-project/ Posted on behalf of Total Helium Ltd.