With an extensive portfolio encompassing over 1 million acres of helium prospective lands across southern Saskatchewan and southeastern Alberta, Royal Helium Ltd. (RHC.v or RHCCF for US investors) has solidified its position as a frontrunner in the exploration, production, and infrastructure realms of this critical and non-renewable resource.
Canada's Trailblazer in Helium Production on the Public Market
As the first publicly traded helium producer in Canada, RHC has made significant strides in bringing the wealth-creation potential of helium to the public. The Steveville project, nestled in Southeast Alberta and wholly owned by RHC's subsidiary, Imperial Helium Ltd, marks the genesis of commercial production for the company.
The state-of-the-art Steveville Purification Facility, commissioned in 2023 and operational since November of the same year, epitomizes RHC's commitment to excellence. With a focus on recovering 99.999% helium and adhering to stringent environmental standards, this facility underscores RHC's dedication to sustainability and efficiency in helium extraction.
Near-term Projects and Development Schedule
With projects such as Climax, Val Marie, Ogema, and 40 Mile on the horizon, RHC's development schedule paints a picture of steady progress and expansion. By bringing on a total of 39 wells through 2030, RHC aims to solidify its position as a key player in North America's helium landscape while continually advancing reserves and exploring new geographic domains.
News for the 40 Mile Project
Historical flow and composition tests at the 7,000-acre 40 mile project showed excellent flow and grade, notably, more than 2X that of Steveville. The original show-well's outcomes rival some of the most significant Cambrian helium discoveries in Alberta, Saskatchewan, and Montana. Despite this, the company operating 40 Mile at the time was focused on natural gas, so the well was shut in. RHC wants to retest it and is optimistic about its helium potential.
Today, RHC confirmed that it has begun licensing and permitting process for Forty Mile's 'Forty Mile #1' exploratory helium well. Following comprehensive seismic assessments, Royal has identified multiple drill targets spanning Devonian and Cambrian horizons, with plans to delve into the Precambrian crystalline basement. With a strategic focus on targeting multiple zones, Royal aims to unlock the full potential of the Forty Mile project, setting the stage for further development and growth.
Moreover, yesterday RHC disclosed the successful closing of its $6 million bought-deal public offering. The net proceeds from this offering will be allocated towards the planned high-impact drilling initiatives at Forty Mile, signaling the company's commitment to leveraging its resources for continued exploration and advancement in the helium sector.
Full news here:
1.https://royalheliumltd.com/2024/05/royal-helium-licensing-high-impact-helium-well-at-forty-mile-southern-alberta/
2. https://ca.finance.yahoo.com/news/royal-helium-announces-closing-6-141300253.html
Transitioning to an Industrial Gas Powerhouse
Beyond helium exploration, RHC is on the cusp of transitioning into a junior industrial gas player, which would allow for multiple cash flow streams with minimal additional capital expenditure requirements. The company's commitment to emissions efficiency is exemplified by the Steveville Helium Plant, which is projected to earn $3-6M per year in carbon credits.
A Strategic Approach to Asset Advancement
With a market capitalization of $57.4M and an enterprise value of $84.9M, RHC stands as a beacon of opportunity for investors seeking exposure to the helium market. Boasting 1,000,000 acres of helium rights, 30+ seismic drill targets, and 16 distinct project areas, RHC is poised for exponential growth in the coming years.
RHC's approach to advancing helium assets is both methodical and pragmatic. From subsurface analysis to the initiation of off-take agreements and the construction of purification facilities, the company's roadmap for success is straightforward, effective, and repeatable.
Royal Helium Ltd.'s journey from exploration to production represents a triumph of innovation, perseverance, and forward-thinking. As the company continues to chart new territories and redefine industry standards, it stands poised to leave an indelible mark on Canada's helium sector while shaping the future of global energy production.
Company deck: https://royalheliumltd.com/presentation/
Posted on behalf of Royah Helium Ltd.