Helium Evolution Incorporated (TSXV:HEVI)
("
HEVI" or the "
Company"), a
Canadian-based helium exploration and production company focused on
developing assets in southern Saskatchewan, today announced the
filing of our unaudited financial results for the three-and
six-month periods ended June 30, 2022, along with a corporate
update that includes a change in management and posting of an
updated corporate presentation on HEVI’s website.
For complete details of the consolidated
financial statements and the associated management’s discussion and
analysis (“MD&A”), please refer to the
Company’s filing on SEDAR (www.sedar.com).
HEVI Q2 & First Half 2022
Highlights:
|
Three months ended June 30, |
Six months ended June 30, |
Tabular amounts in thousands of Canadian Dollars, except share and
per share amounts |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Financial |
|
|
|
|
Net loss |
$ |
1,342 |
|
$ |
65 |
|
$ |
2,996 |
|
$ |
785 |
|
Net loss per share, basic and diluted |
|
0.02 |
|
|
0.00 |
|
|
0.05 |
|
|
0.04 |
|
Cash |
|
14,216 |
|
|
332 |
|
|
14,216 |
|
|
332 |
|
Working capital |
|
14,803 |
|
|
320 |
|
|
14,803 |
|
|
320 |
|
Total assets |
|
17,674 |
|
|
341 |
|
|
17,674 |
|
|
341 |
|
Total liabilities |
$ |
976 |
|
$ |
21 |
|
$ |
976 |
|
$ |
21 |
|
Weighted average shares outstanding |
|
|
|
|
Basic and diluted1 |
|
79,118,595 |
|
|
20,274,129 |
|
|
60,467,902 |
|
|
17,910,925 |
|
1The weighted average number of common shares
outstanding is not increased for outstanding stock options and
warrants when the effect is anti-dilutive.
The second quarter of 2022 was HEVI’s first full
quarter as a publicly traded company, cementing HEVI’s position as
the largest holder of helium exploration rights in North America
among publicly-traded helium companies. The most significant
highlight during the quarter was our announcement of HEVI’s farmout
agreement (the “Farmout Agreement“) with North
American Helium Inc. (“NAH”) and associated
non–brokered, brokered and strategic investor private placements
that raised aggregate gross proceeds of $6.9 million. The NAH
farmout agreement validates and differentiates HEVI’s strategy,
while aligning the Company with one of the helium industry’s
leading operators. The related financings enhanced HEVI’s financial
flexibility to fund the farmout arrangement and execution of our
overall strategy, while also contributing to a cash balance of
approximately $14.0 million exiting Q2/22.
HEVI’s internal exploration and development
program is supplemented by our farmout with NAH which provides
additional opportunities and further capital to prove up the
Company’s asset base and continue driving towards
commercialization. Under the farmout, NAH will drill a total of
five wells while incurring 100% of the drilling expenditures on
three predetermined land blocks in Saskatchewan, representing
approximately 2.3 million acres located west of the third meridian
(the “Blocks”), excluding our current drilling
focus at McCord. For each well drilled, NAH will earn an 80%
operated interest in the section on which the well was drilled plus
nine contiguous sections of land adjoining to the well, up to a
maximum of 32,000 acres. HEVI will retain a 20% working interest in
the earned lands and each successful well drilled by NAH (the
“HEVI Working Interest“).
Capital expenditures during the second quarter
totaled $1.06 million, largely directed to licensing and
environmental work, the commencement of drilling the Company’s
first helium exploration well, along with the pre-purchase of
casing to mitigate against ongoing supply chain issues. Drilling of
both wells concluded during the third quarter, and although both
indicated the presence of helium, the targeted geological traps did
not contain sufficient quantities of helium to support production
testing at this time. HEVI is committed to continued capital
discipline and is in the process of conducting further analysis on
logs and other information obtained through the drilling process to
date. We intend to secure additional 2D seismic at McCord to
facilitate and enhance visibility into the play, and may also elect
to re-enter these wells in the future. We believe the NAH drilling
program will also provide valuable data to support the
identification of future high-quality drilling targets.
Currently, HEVI has approximately $10 million in
cash and stringent cost reduction initiatives in place to optimize
funds for asset development. In addition, we benefit from a
valuable farmout agreement that can complement our ongoing
exploration and development efforts. The HEVI team maintains full
confidence in the prospectivity of our sizeable land package and
due to the long tenure of helium permits granted by the Government
of Saskatchewan, retain considerable flexibility in managing our
capital.
Management Change and Updated Corporate
Presentation
HEVI also announced today that Chief Financial
Officer, Ryan Tomlinson, has resigned his position effective August
24, 2022 having accepted a new role within a different industry.
HEVI is currently searching for a replacement to fulfill the duties
previously discharged by Mr. Tomlinson. HEVI wishes Mr. Tomlinson
the best in his future endeavours.
Shareholders and other parties interested in
learning more about the Helium Evolution opportunity are encouraged
to visit the Company’s website, which includes an updated corporate
presentation, and are invited to follow the Company on LinkedIn and
Twitter for ongoing corporate updates and helium industry
information. Helium Evolution also provides an extensive,
commissioned ‘deep-dive’ research report prepared by a third party
whose background includes serving as a research analyst for several
bank-owned and independent investment dealers. In addition to
recent media articles, HEVI maintains a profile on the Investing
News Network platform, where further information, editorial pieces
and industry reviews are available.
About Helium Evolution
Incorporated
Helium Evolution is a Canadian-based helium
exploration and production company holding the largest helium land
rights position in North America among publicly-traded companies,
focused on developing assets in southern Saskatchewan. The Company
has over five million acres of land under permit near proven
discoveries of economic helium concentrations which will support
scaling the exploration and development efforts across its land
base. HEVI’s management and board are executing a differentiated
strategy to become a leading supplier of sustainably-produced
helium for the growing global helium market, offering a compelling
opportunity for investors.
For further information, please
contact:
Greg Robb, President & CEO |
Phone: 1-587-330-2459 Email: info@heliumevolution.caWeb:
https://www.heliumevolution.ca/ |
|
|
Cindy Gray, Investor
Relations |
info@5qir.com | 403-705-5076 |
Statement Regarding Forward-Looking
Information
This news release contains statements that
constitute "forward-looking statements." Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements,
or developments in the industry to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document
include statements regarding the Company's expectations regarding
the Company's exploration program, including the purchase of 3D
seismic and activities related to the Farmout Agreement, increasing
shareholder value, the retention of a new chief financial officer
and other statements that are not historical facts. By their
nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors and risks include, among others: the
Company may choose to defer, accelerate or abandon its drilling
plans; new laws or regulations and/or unforeseen events could
adversely affect the Company’s business and results of operations;
stock markets have experienced volatility that often has been
unrelated to the performance of companies and such volatility may
adversely affect the price of the Company's securities regardless
of its operating performance risks generally associated with the
exploration for and production of resources; the uncertainty of
estimates and projections relating to expenses; constraint in the
availability of services; commodity price and exchange rate
fluctuations; the current COVID-19 pandemic; adverse weather or
break-up conditions; and uncertainties resulting from potential
delays or changes in plans with respect to exploration or
development projects or capital expenditures.
When relying on forward-looking statements and
information to make decisions, investors and others should
carefully consider the foregoing factors and risks and other
uncertainties and potential events. The Company has assumed that
the material factors referred to in the previous paragraphs will
not cause such forward-looking statements and information to differ
materially from actual results or events. However, the list of
these factors is not exhaustive and is subject to change and there
can be no assurance that such assumptions will reflect the actual
outcome of such items or factors. The reader is cautioned not to
place undue reliance on any forward-looking information. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated. Forward-looking
statements contained in this press release are expressly qualified
by this cautionary statement. The forward-looking statements
contained in this press release are made as of the date of this
press release. The Company does not intend, and expressly disclaims
any intention or obligation to, update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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