Multiple Potential Targets in Mankota/McCord, Saskatchewan Area Identified; Drilling to Commence in Six Weeks
Calgary, Alberta, April 21, 2022 – Helium Evolution Incorporated (TSXV: HEVI) (“HEVI”, “Helium Evolution” or the “Company”), a Canadian-based helium exploration and production company focused on developing assets in southern Saskatchewan, is pleased to provide a corporate update for shareholders regarding the achievement of key milestones towards our goal of generating long-term cash flow and shareholder returns. One such milestone in this journey was providing liquidity for our shareholders, which was realized on March 30, 2022 with our listing on the TSX-V. In addition to having approximately $10 million in cash, our listing supports ongoing efforts to start generating revenue from the production and sale of helium, which is targeted to commence in the first quarter of 2023.
Since founding the Company in 2021, management and the board of directors have shared the overall vision of becoming a leading North American helium exploration and production company focused in the Saskatchewan helium fairway. HEVI recognized early on that amassing a sizeable land position in the province would be instrumental and have successfully acquired 5.48 million acres of helium exploration permits in Saskatchewan. This positions HEVI as the largest holder of helium exploration rights in North America among publicly listed helium companies. On that land, we have now purchased and shot over 750 km of 2D seismic which has been fundamental to identifying numerous drilling targets in the Mankota/McCord area of south-central Saskatchewan.
Mankota/McCord the Initial Focus
Based on advanced geological and seismic analysis, HEVI sees multiple potential helium anomalies at the Mankota/McCord area. A large private helium producer recently made a discovery of helium in the Mankota area adjacent to HEVI’s land, drilling five wells into the new pool and licencing one additional well. Based on our technical analysis and seismic mapping, this discovery appears to extend onto HEVI’s adjacent Mankota lands.
Helium’s scarcity has recently caused it to be classified as a critical mineral to many leading countries1, leading to escalating prices. Although helium lacks a transparent trading market that can provide visibility on pricing, recent transactions by industry peers indicate wholesale helium pricing in the US$600 per mcf range and retail prices in the US$2000 per mcf range2, levels which support HEVI’s robust economic and financial modeling.
The Mankota pool has demonstrated helium concentrations of 1.08%3, and a nitrogen-rich reserve. The production of nitrogen is significant as nitrogen is an environmentally friendly carrier gas that is beneficial to the environment, making helium extraction a greener energy source than conventional natural gas. HEVI has also identified a strategy for modular-based processing, production and offtake once production comes on stream.
HEVI’s first three drilling locations at Mankota/McCord have been surveyed and we are now in the process of acquiring surface leases and drilling licenses. With a rig supplied by Savannah Drilling, the Company’s drilling program will commence with the spudding of our first exploration well in early June, once surface conditions are suitable. We have contracted a drilling rig for up to four wells and secured the required production casing, which helps mitigate risk due to supply chain issues. Three additional drilling targets are in the surveying stage, which HEVI can elect to drill immediately following the first three, based on success.
As part of our longer-term program, HEVI’s technical team is evaluating several other large prospect areas across our extensive land base, with the Company planning on shooting new 2D seismic and purchasing additional seismic trade data throughout the year. To further advance our prospects and prepare for additional drilling in late 2022 and into 2023, HEVI plans to establish a continuous cycle of shooting seismic, drilling and producing. This practice of acquiring seismic during the coldest months of the year, and drilling during the milder seasons is more cost effective and designed to position HEVI with steady production while protecting the safety and integrity of our operational crews and equipment.
“We are extremely proud of the progress HEVI has made in the short time since our inception, particularly having secured such a significant land base, assembled a top-notch technical team, and formulated a robust strategy designed to enable HEVI to meet or exceed expectations,” said Greg Robb, President & CEO. “With the Saskatchewan government’s public vision to secure 10% of the global helium market share by 2030 through its Helium Action Plan, Helium Evolution is operating in a supportive, regulatory-friendly jurisdiction that helps set us up for long-term growth.”
Strong Corporate Governance and Market Engagement
The HEVI management team and board of directors is comprised of a seasoned group of individuals who each bring unique and valued experience to the organization. Our well-rounded management team brings proven acumen in engineering, geology, land acquisition and shareholder value creation with a commitment to conservative execution and contingency planning. President and CEO Greg Robb, is joined by John Kanderka, VP Land and Corporate Development; Pat Mills, COO; and Ryan Tomlinson, CFO. The Company’s board of directors includes James Baker, Chair; Brad Wall, Independent Director; Mike Graham, Independent Director; Philip Hughes, Independent Director; Jeff Barber, Director and recently-appointed Heather Isidoro, Independent Director.
Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to read an extensive, ‘deep-dive’ research report commissioned by Helium Evolution and prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers. In addition, HEVI is profiled on the Investing News Network platform, where further information, editorial pieces and industry reviews are available and has been featured in recent news media articles. Additional information is available on the Company’s website, including a current corporate presentation, and we encourage you to follow the Company on LinkedIn and Twitter for ongoing corporate updates and helium industry information.
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:
|For further information, please contact:|
|Greg Robb, President & CEO||Phone: 1-587-330-2459|
|Ryan Tomlinson, CFO||Email: firstname.lastname@example.org|
|Cindy Gray, Investor Relationsemail@example.com | 403-705-5076|
1 Critical Minerals; Government of Canada; March 2021.
3 Helium in Southwestern Saskatchewan Accumulation and Geological Setting, Melinda M. Yukowski; 2016.
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 commencement of drilling by the Company, timing of production and cash flows, market pricing for helium, increasing shareholder value 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, including the ability of the Company to construct the necessary facilities to move its products to markets; 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.
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