Helium Evolution Provides Update on First Farmout Well Drilled by North American Helium
21 November 2022 - 11:00PM
Helium Evolution Incorporated (TSXV:HEVI)
("
HEVI" or the "
Company"), a
Canadian-based helium exploration and production company focused on
finding, developing and commercializing assets in southern
Saskatchewan, today provides an update on the first of two wells
that will be drilled by year end 2022 (the “
First Test
Well”), NAH Grasslands 13-30-2-8W3, on farmout lands
within Block 1 at Mankota in Saskatchewan.
The First Test Well was drilled and fully funded
by HEVI’s farmout partner, North American Helium
(“NAH”), pursuant to a previously announced
farmout arrangement (see press releases dated October 21, 2022, and
June 28, 2022). After reaching total depth over the weekend, NAH
has informed HEVI that the open hole portion of the First Test Well
will be abandoned, but that NAH is electing to suspend the cased
hole portion of the well to afford optionality and the ability to
re-enter it at a later date, potentially to drill a sidetrack to
another target. NAH is expected to spud its second licenced
location on HEVI lands at NAH 1-1-6-10W3 (the “Second Test
Well”) in mid-December.
With approximately $10 million in cash and
liquid assets, HEVI is well positioned to maintain financial
flexibility given the Company benefits from five, to up to eight,
wells that NAH will drill and fully fund, leaving HEVI with
significant optionality to pursue other targets across the
Company’s 5.5 million acres of helium rights. The Company can also
leverage NAH’s extensive expertise, current data as well as future
seismic data to help expand understanding of the play and further
build out its existing technical work to support the selection of
HEVI’s future 100% operated drilling targets.
“The data provided from this First Test Well
affords both NAH and HEVI with valuable insights and additional
understanding of what is effectively still a ‘wild-cat’ play,” said
Greg Robb, President & CEO of HEVI. “NAH’s Second Test Well
will be drilled before year end 2022, providing HEVI with potential
near-term upside, while maintaining the ability to conserve HEVI’s
capital. We look forward to continued collaboration with the NAH
team to prove up the prospectivity of our large land base,
particularly in light of recent indications that helium prices have
further expanded, rendering our forecast economics incredibly
attractive.”
The Company has provided updated forecast
economics within its November corporate presentation, available on
the HEVI website.
About Helium Evolution Incorporated
HEVI 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 &
CEOKristi Kunec, CFO |
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 plans, arrangements with NAH pursuant to
the farmout agreement, expectations regarding helium pricing 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 exploration
plans, including the proposed seismic purchase; the Company and NAH
may determine to amend the farmout agreement; 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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