Today, Royal Helium (RHC.v RHCCF) provided an update on its operations at the Steveville Helium Facility, reporting that it has now shipped the 10th and 11th purified helium trailers from the purification facility.
Experiencing both growth in throughput rate and more consistency in run time, the Steveville facility continues to ramp up capacity and the production zones of the reservoir are flowing as projected, with helium concentrations meeting or exceeding original expectations.
Over the past three weeks, RHC has achieved stable production at 50% of nameplate capacity with periodic increases up to 75% of capacity.
Stable production at 50% of nameplate amounts to approximate sales of four trailers per month, representing a 100% increase from prior levels.
Once at capacity, the plant is expected to produce between seven and eight trailers of purified helium per month.
Andrew Davidson, CEO, commented:
"We are pleased with the progress being made at Steveville by the teams of engineers, electrical and instrumentation technicians, and programmers we have working at site. With the number of adjustments lessening as we approach run rate, we look forward to achieving the full economic potential of the facility."
Market-Changing Role
As the first Canadian public company to produce and sell helium (directly to a large end user at a contracted fixed price) from its innovative plant, RHC is playing a market-changing role in the field of helium production as it controls over one million acres of prospective helium permits and leases across Saskatchewan and Alberta.
The plant produces 22 million cubic feet of helium, 20 million pounds of food-grade CO2 and 2,920 barrels of condensate per year. Plus, an off-take agreement was signed with a major customer from the aerospace and defense industry for all of the helium produced in the plant.
In addition to Steveville, RHC has entered into a letter of intent for a $25M joint venture with Sparrow Hawk to develop the Val Marie project in Saskatchewan. If ratified, this will provide a big leap as the cash investment into one of RHC's six near-term projects exceeds the entire market cap of RHC (including the already producing/selling of helium from Steveville).
With plans to significantly enhance its existing fields and initiate new projects, RHC's key activities in 2024 include completing and testing wells in the Val Marie, Ogema and Steveville properties alongside commencing new drilling operations at the 40 Mile Project which has shown promising preliminary results with high-helium concentrations.
For more information, check out this video with RHC's CEO, Andrew Davidson discussing the company's position to be a leading North American producer of this increasingly high value commodity: https://www.youtube.com/watch?v=AYwFI6lbm2w
Full News Release: https://royalheliumltd.com/2024/05/royal-helium-provides-update-on-operations-at-steveville-helium-facility/
Posted on Behalf of Royal Helium Ltd.