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GLV Secures Giant 4,858km2 Highly Prospective Oil And Gas Block Off Peru
Global Oil & Gas Limited (ASX: GLV) (Global or Company) is pleased to announce that it has executed a Technical Evaluation Agreement LXXXVI (TEA) with the Peruvian National Agency of Hydrocarbons, Perupetro, for a 4,858km2 oil and gas exploration block offshore Peru. The Company now holds 80% of the TEA with project partner, US based oil and gas exploration company Jaguar Exploration, Inc. (Jaguar), holding the remaining 20%. Pursuant to the agreement, GLV shares as detailed in the ASX announcement dated 7 June 2023, and approved at the Shareholders meeting on 15 August 2023, will be issued today.
Highlights
- Global has executed a contract with Peruvian national agency of hydrocarbons Perupetro for a 4,858km2 oil and gas block in proven hydrocarbon bearing basins offshore Peru, including the prolific (+1.6 billion barrels produced) Talara basin
- Block surrounds the excised 27.8 Million barrel Corvina oil field
- Located immediately south of the block is the Alto-Pena Negra oil field, one of Peru’s most productive fields, with total historical production of more than 143 million barrels of oil
- Data from 7 historical 2D seismic campaigns and more than 3,800km2 of 3D seismic has been secured
- A detailed work program is now underway which includes reprocessing 1,000 km2 of 3D seismic data, AVO studies, geological and geophysical studies and developing a portfolio of leads & prospects with a view to potentially generating Prospective Resources
- Manageable two year work program commitment with opportunity to extend for one extra year
Figure 1: Onshore and offshore oil and gas wells in the Southern Talara Basin, Peru
Managing Director Patric Glovac commented:
“The acquisition of this highly significant 4,858km2 (over 1.1 million acres) offshore oil and gas opportunity in Peru is transformational for the Company.
The nearby oil discoveries and petroleum refinery close to the offshore block make this an enviable address for global oil and gas players. Seven 2D seismic surveys and more than 3,800km2 of 3D seismic has been received and is now being processed to identify leads, prospects and, potentially, certified Prospective Resources.
The Company is in the process of creating a comprehensive data room to facilitate the process of marketing this opportunity to prospective project investors and/or joint venture partners.
This world-class asset is an incredible opportunity for the Company to comprehensively collate all existing information, potentially generating certified Prospective Resources and compelling drill targets”.
Figure 2: Global Oil’s TEA block offshore Peru
The oil and gas block is located in the Tumbes-Progreso basin, in water depths that range from 100m to 1,500m. Immediately to the south is the Talara Basin which is one of the most productive basins in Peru having already produced more than 1.6 billion barrels.
The block is surrounded by, and incorporates, multiple historic and currently producing oil and gas fields. The southeast of the block borders the Alto-Pena Negra oil field which is one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day (bopd) with total historical production of more than 143 million barrels of oil.
In the northeast, the block incorporates the excised 27.8 million barrel Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day (28.45⁰ API).
The southern border of the TEA is also only 70km from the Talara crude oil refinery which received production from the Corvina field.
Click here for the full ASX Release
This article includes content from Global Oil and Gas Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
A Global Helium Shortage: Why This Investment Opportunity is Heating Up
Helium is experiencing an increasing level of demand for its applications in the medical, research, aerospace and technology industries. This rare and finite element is used in MRI machine technology, fiber optics, semiconductors, space exploration and more. Helium is also valuable for scientific research, medical use and in other specialized industries.
So, what is helium? Helium is a colorless, odorless, tasteless, inert and non-toxic gas that sits first in the group of noble gases on the periodic table of elements. Since it has so many important uses in the modern world, helium stocks are being reduced at a steady rate and at current rates of consumption the world could see its supply potentially dry up in the not too distant future.
While the US was once the dominant global supplier of helium, Canada and other countries around the world are emerging as potential new supply sources having large reserves of this noble gas, which could help with the looming helium shortage.
Emerging helium applications
Helium is a critical component in many aspects of life. It’s a strategic natural resource essential in space exploration, medical technology and nuclear power industries.
In an interview with INN, First Helium (TSXV:HELI,OTCQB:FHELF) CEO Ed Bereznicki said the biggest growth area for helium will continue to be in high-tech projects, such as artificial intelligence, quantum computing areas and other sectors.
“Anytime we launch a satellite into space for communications and other uses, helium comes into play. And then, when we talk about the transitional energy future, where are we heading in that space? Small modular reactors in terms of their ongoing design. The more efficient ones will use helium as a cooling medium for more efficient power generation. We (also) need more technology for electric vehicles and other electronic equipment to aid in the green transition,” said Bereznicki.
Is there really a helium shortage?
Unlike base and precious metals, which are found in numerous countries around the world, the world’s supply of helium is less understood and is believed to mainly be located in only a handful of countries, including Qatar, the US, Algeria and Russia. Helium’s unique chemical properties and inert behavior make it a finite commodity in high demand.
The element does not readily combine with other elements, which means as it reaches the surface of the Earth, it can easily escape the planet’s gravitational pull.
As the demand for helium grows, analysts expect the global demand for helium to nearly double by 2035. However, meeting forecasted demand based on current supply chains may not be possible.The world’s top locations for helium gas exploration
Much of the world’s helium resources exist in a handful of jurisdictions, including the US, Canada, Algeria and Qatar. With only a few countries producing helium, the world’s production can be described with a single word: fragile.
For over 100 years, the US government managed the global supply of helium. Although 75 percent of all the world’s helium production has traditionally come from three locations in the US, the Federal Helium Reserve, operated by the Bureau of Land Management in Amarillo, Texas, was sold to Messer in 2024.
Helium has been deemed a critical mineral by the Canadian government, aligning it with the likes of highly sought-after minerals like copper, uranium, zinc and others. The country now has the fifth largest helium reserves in the world.
Companies looking to leverage North American helium resources include Avanti Helium (TSXV:AVN,OTC Pink:ARGYF) which focuses on the exploration, development and production of helium in Canada and the US.
First Helium is another player in the helium space, positioned to become a leading North American producer that is employing a de-risked, low-cost strategy to achieve near-term cashflow. Its flagship Worsley project strategically sits atop a helium-rich area of the Western Canadian Sedimentary Basin, north of Grande Prairie, Alberta.
As an emerging leader in helium exploration and resource development, First Helium plans to start drilling into newly identified exploration targets at the Leduc formation that could potentially lead to a production level of up to 5,000 barrels of oil equivalent per day at 0.8 percent helium. Successful drilling will also allow the company to create a second operating hub with a multi-well facility.
With the end of the Federal Helium System, a large opportunity exists for companies like First Helium to supply helium via industrial gas aggregators in the US to North America, and potentially globally as an increasingly finite and valuable commodity.
Many areas of Alberta and southern Saskatchewan naturally contain large amounts of helium. As an indication of the growing importance of helium development in Canada, the country’s largest processing facility opened near Battle Creek, Saskatchewan in April of 2021.
Commissioned by North American Helium, the C$32 million plant is expected to produce more than 50 million cubic feet of purified helium for commercial sale.
Takeaway
Helium is a rare and finite resource that is experiencing an increasing level of demand for its applications in the medical, research, aerospace and technology industries. Due to the paradigm shift in the helium supply chain, driven by the US government ending the Federal Helium System, many companies in countries like Canada are beginning to capitalize on the substantial investment opportunity that exists to participate in this space and replenish the depleting global stockpiles of this valuable noble gas. As an early mover in the nascent Canadian helium sector, First Helium is well positioned to establish itself as a leading, emerging helium supplier.
This INNSpired article is sponsored by First Helium (TSXV:HELI,OTCQB:FHELF,FWB:2MC). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by First Heliumin order to help investors learn more about the company. First Helium is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with First Helium and seek advice from a qualified investment advisor.
Coelacanth Energy
Investment Insight
Coelacanth presents a compelling investment opportunity with its ownership of approximately 150 net sections in the Montney Formation in the Two Rivers oil and liquids rich natural gas region, boasting $64.4 million in working capital and a strategic position near major producers.
Overview
Coelacanth Energy (TSXV:CEI) is a junior oil and natural gas exploration and development company, focusing primarily on the prolific Montney region in northeastern British Columbia, Canada. With a substantial landholding of approximately 150 net sections in the Two Rivers area of Montney, Coelacanth is strategically positioned to harness the potential of one of the most resource-rich natural gas basins in North America. This company sets itself apart with its well-structured growth strategy, financial stability, and commitment to sustainability, making it one of the promising junior players in the region.
Coelacanth Energy has established a strong foundation to deliver on its future production targets by ensuring it is fully permitted and funded to embark on its infrastructure developments. The company is in the process of deploying $ 80 million to facilitate the smooth transition from exploration to production. Coelacanth’s financial health is further evidenced by its $64.4 million in working capital as of Q2 2024. This financial cushion not only supports ongoing infrastructure projects but also provides the company with the flexibility to expand its operations.
Capital deployed for project development will be allocated towards constructing processing facilities, pipelines, and necessary gathering lines, which are all crucial components for transporting and processing oil and gas. With processing contracts secured for up to 60 million cubic feet per day (mmcf/d) and long-term gas takeaway agreements for 100 mmcf/d, Coelacanth is well-positioned to scale its production quickly and efficiently. The company aims to have its infrastructure fully operational by mid April 2025, ramping up cashflow, marking a significant milestone in its transition to a full-scale production company.
The Montney Formation is recognized as one of the most significant natural gas reserves in North America, covering large portions of British Columbia and Alberta. Known for its high levels of natural gas and natural gas liquids (NGLs), Montney has attracted numerous large oil and gas producers, including companies like Canadian Natural Resources (CNQ), Shell, ARC Resources (ARX), Tourmaline Oil Corp (TOU), and ConocoPhillips (COP). The presence of such large players highlights the importance of this region in contributing to both the Canadian and global energy markets.
Coelacanth’s landholdings are strategically located in the Two Rivers area of Montney, giving it access to a highly productive portion of the basin. Unlike many junior exploration companies, Coelacanth is drill-ready, positioning it favorably among its peers. By securing significant infrastructure and landholdings, Coelacanth ensures its ability to tap into the natural gas and oil resources that lie beneath its properties, a key advantage in the competitive Montney region.
Two-Pronged Strategy
Coelacanth Energy Inc. has adopted a well-defined two-pronged strategy for growth, which focuses on both immediate production goals and long-term resource development. This approach provides a balanced focus on infrastructure development and resource delineation.
Coelacanth is focused on delineating its land base resources alongside infrastructure development. This involves drilling wells to explore and prove the extent of hydrocarbon deposits across multiple zones within the Montney Formation. By continuing to delineate its resources, the company aims to demonstrate the productivity and economic viability of its assets, which is critical for long-term growth. The delineation process also helps Coelacanth de-risk its projects, ensuring that future drilling activities are economically sound.
Company Highlights
- The company holds approximately 150 net sections of land in the Two Rivers area, a prolific oil and liquids rich natural gas region.
- Coelacanth is fully permitted and financially secure, with $64.4 million in working capital as of Q2 2024 and a $52 million credit facility with its main lender.
- The company is spending approximately $80 million to construct pipeline and facility infrastructure to bring production on in April 2025.
- The company’s strategic location in Montney places it near major producers like ARC Resources, Tourmaline Oil Corp, Shell, and ConocoPhillips.
- Two Rivers East, its primary project, boasts 1,532 (thousand barrels of oil equivalent) mboe per well in proved and probable reserves.
Key Projects
Two Rivers East and Two Rivers West
Compelling test results and initial reserves bookings
The Two Rivers East project is Coelacanth’s primary development focus. This area has shown significant potential for oil and gas production, with initial tests yielding compelling results. The proved and probable reserves (P+P) for Two Rivers East are estimated at 1,532 mboe per well, with approximately 30 percent of the reserves comprising oil and NGLs. Initial production tests from wells in the Lower Montney zone have confirmed the commerciality of this resource, with one well producing 1,345 barrels of oil equivalent per day at (boepd) at 61 percent oil, and three others producing an average of approximately 1,300 boepd at averaging 38 percent oil. These results underscore the viability of Two Rivers East as a key asset for Coelacanth’s future growth.
The Two Rivers West project also holds considerable proved and probable reserves of approximately 1,148 mboe, 34 percent of which consist of oil and NGLs. Similar to Two Rivers East, initial production tests have demonstrated strong deliverability. For example, the Upper Montney well in this region produced an average of 1,284 boepd during its test phase. These tests indicate that the Two Rivers West project will contribute significantly to Coelacanth’s production capabilities as it continues to expand its operations.
Coelacanth’s strategic location in the Montney, coupled with large contiguous landholdings and established infrastructure, positions the company for long-term growth. The company’s land position in the light oil window of Montney further enhances its value, as light oil typically commands a premium over heavier oil grades. Coelacanth is the number one landholder in this lucrative area, providing it with a significant competitive edge.
Moreover, Coelacanth’s management team has a proven track record, having successfully built and sold six oil and gas companies prior to founding Coelacanth. This experience adds credibility to the company’s long-term growth strategy, instilling confidence that Coelacanth can replicate its past successes in the Montney region.
Board and Management
Rob Zakresky – President and CEO
Rob Zakresky has a significant background in the oil and gas sector, previously serving as the president and CEO of Leucrotta Exploration as well as five additional predecessor companies. He has been with Coelacanth Energy since its inception and is recognized for his strategic leadership and focus on enhancing shareholder value. His expertise in financial management and operations is reflected in his approach to driving the company's growth.
Bret Kimpton – Vice President of Operations and COO
Bret Kimpton joined Coelacanth Energy in 2022, bringing a wealth of experience from his previous role as vice president of production at Storm Resources, where he contributed to significant production growth. He has a strong background in construction and operations, especially in the Montney region of British Columbia, managing various fields. His role at Coelacanth focuses on overseeing operational efficiency and implementing the company's growth strategies.
Nolan Chicoine – Vice President of Finance and CFO
Nolan Chicoine has also been with Coelacanth Energy since its inception. His responsibilities encompass financial oversight, including financial planning, reporting, and analysis. He plays a crucial role in aligning the financial strategies with the company's operational goals. His background includes significant experience in financial management as CFO for Leucrotta Exploration, Crocotta Energy, and Chamaelo Energy.
New Resource Booking
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on a new resource booking for its 100% owned ATP 2077, located in the Taroom Trough in Queensland, Australia.
HIGHLIGHTS
- Prospective resources of 712 billion cubic feet (2U) booked in Sub-Block B of ATP 2077
- Farmout campaign for the Diona Block (Sub-Block C of ATP 2077) well under way
- Updated contingent resources for ATP 2044 expected before year end
Although one licence, ATP 2077 is broken into 3 geographically separate sub blocks (see map below). Sub-Block A is located immediately proximate to ATP 2044 and contains similar Taroom Trough geology. A contingent resource booking was announced when the block was awarded (see ASX announcement of 19 August 2024). Sub-Block B also overlies the Taroom Trough, however given the further distance from Project Grandis the resource here is considered prospective in nature - at this stage. Sub-Block C lies outside the Taroom Trough, is immediately adjacent to existing gas infrastructure and is prospective for shallower conventional oil and/or gas drilling targets.
Location map of ATP 2077 showing Sub-Blocks A, B and C
Based on recent internal technical work undertaken, Elixir has booked a prospective resource estimate for ATP 2077 Sub-Block B – see table below.
Notes to Prospective Report Table:
1. These are un-risked prospective resources that have not been risked for geological success or the chance of development. The chance of success for tight sands and deep coal was estimated at 65% and 27% respectively. Both targets are considered trapped in an unconventional setting. The chance of commercial development is estimated at 50% for each.
2. Each reservoir target was evaluated probabilistically and the totals added arithmetically.
3. Prospective Resources have been assessed on the basis that they are unconventional in nature.
4. ATP is an Authority To Prospect, which allows a company to explore for hydrocarbons in Queensland.
5. Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) related to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further explorations appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. These Prospective Resource estimates are for the tight sandstones and deep Permian coals within Block B only. The estimates assume the same Basin Centered Gas (BCG) play is present, and similar reservoir parameters to ATP 2044 have been used. The block is mature for drilling, and exploration drilling may occur in the years to come.
6. Elixir’s technical team analyzed seismic, drilling, logging and test data to make these estimates. Specific analysis undertaken included seismic interpretation, geological correlations, core analysis, wireline petrophysics, chromatographic gas analysis and production test analysis.
7. Further detailed notes on the background to the preparation of the Prospective Resource Report are set out in Appendix 1.
In ATP-2077 Sub-Block C (also known as the Diona Block), Elixir is currently conducting farmout negotiations under which it is seeking an incoming party to fund the cost of an exploration well. The Company will provide an update on these in due course.
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
5 Top Canadian Oil and Gas Dividend Stocks in 2024
Canadian oil and gas stocks have faced a rollercoaster ride over the past few years.
However, analysts remain optimistic about the sector, and there are signs that oil and gas companies in Canada may be in a multi-year bull market. The top oil and gas stocks on the TSX and TSXV have been posting gains despite volatile market conditions, and many companies offer strong payouts for dividend investors.
Canadian energy stocks that pay dividends — a portion of corporate profits shared on a specific timeline — are attractive to those who prefer a long-term approach to wealth creation. Dividend investing allows for a steady flow of income and the opportunity to increase equity holdings.
Investors should look for stocks with high dividend yields, which is based on annual dividend income per share divided by price per share. For example, if a dividend stock has a share price of C$10.00 and pays a C$0.25 dividend every quarter, it has a dividend yield of 10 percent. Of course, as share prices fluctuate, so too will dividend yields, so investors should perform due diligence when choosing which company to invest in.
The ability to offer a dividend payment points to the financial health of a company, making it a point of pride for companies in the oil and gas industry.
The Investing News Network has compiled a list of the five top Canadian oil and gas dividend stocks using TradingView’s stock screener. Data was current as of October 23, 2024, and at that time the companies on this list had dividend yields of greater than 7 percent, as well as debt-to-equity ratios (total equity divided by total liabilities) of 0.5 or less. This ratio reflects the strength of each company’s balance sheet.
1. Cardinal Energy (TSX:CJ)
Dividend yield: 11.03 percent
Debt-to-equity ratio: 0.09
Market cap: C$1.04 billion
Cardinal Energy is an oil-focused company with operations centered on low-decline light, medium and heavy oil in Western Canada. The company reported that its Q2 production increased by 3 percent over the previous quarter to 22,376 barrels of oil equivalent per day (boe/d) "as volumes from the company's strong first quarter drilling program positively impacted the quarter."
Cardinal Energy pays a monthly dividend of C$0.06 per share. Its October dividend will be paid on November 15 to shareholders of record as of October 31.
2. Gear Energy (TSX:GXE)
Dividend yield: 10 percent
Debt-to-equity ratio: 0.06
Market cap: C$158.16 million
Next on this list of top Canadian oil and gas dividend stocks is Calgary-headquartered Gear Energy, an oil company focused on operations in three core areas: Lloydminster heavy oil, Central Alberta light-medium oil and Southeast Saskatchewan light oil.
The company reported Q2 production of 5,621 boe/d, a 2 percent decrease over the first quarter of 2024 "due to the shut-in of some of the Company's gas wells as well as some unexpected downtime." Gear Energy pays a monthly dividend of C$0.005 per share, with its next payment coming out October 31 to shareholders of record as of October 15.
3. Birchcliff Energy (TSX:BIR)
Dividend yield: 9.17 percent
Debt-to-equity ratio: 0.22
Market cap: C$148.45 million
Birchcliff Energy is an intermediate oil and natural gas firm with operations focused on the Montney/Doig resource play in the Peace River Arch area of Alberta, Canada.
“We continued with the successful execution of our capital program in the second quarter, bringing 11 wells on production. These wells are exceeding our internal projections, with strong initial production rates that contributed to our solid quarterly average production of 78,358 boe/d,” said Birchcliff CEO Chris Carlsen in a recent press release.
Birchcliff has declared a quarterly cash dividend of C$0.10 per common share for the quarter ending on September 30.
4. Peyto Exploration & Development (TSX:PEY)
Dividend yield: 8.63 percent
Debt-to-equity ratio: 0.50
Market cap: C$265.65 million
Peyto Exploration & Development conducts unconventional natural gas exploration, development and production in the Deep Basin in Alberta. The company reported that its Q2 2024 production volumes averaged 122,299 boe/d, up 24 percent year-over-year, which it attributed mainly to the Repsol Canada Energy Partnership acquisition that closed in Q4 2023.
Currently, Peyto pays its shareholders a monthly dividend of C$0.11 per common share, and plans to make a dividend payout on November 15 to shareholders of record as of October 31.
5. Surge Energy (TSX:SGY)
Dividend yield: 7.99 percent
Debt-to-equity ratio: 0.29
Market cap: C$621.74 million
Last on this list of top Canadian oil and gas dividend stocks is Surge Energy, an oil-focused exploration and production company with assets in two of Canada's premiere conventional oil growth plays: Sparky and SE Saskatchewan.
In its financial and operating results for the period ending June 30, 2024, the company reported that in the first six months of the year, oil production reached 20,124 barrels per day.
Surge Energy pays a monthly cash dividend, which has come in at C$0.043 per share since June 2024, up from C$0.04 previously. On November 15, the company will make its next dividend payout to shareholders of record as of October 31.
This is an updated version of an article first published by the Investing News Network in 2021.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Charbone Hydrogen
Investor Insight
Charbone Hydrogen (TSXV:CH) offers a compelling investment opportunity in the US$89 billion green hydrogen market, leveraging a decentralized approach for scalable plant deployment and focusing on environmentally friendly production to reduce carbon footprints.
Overview
Charbone Hydrogen (TSXV:CH,OTCQB:CHHYF,FWB:K47) is the only publicly listed green hydrogen firm in Canada looking to expand across North America (US and Canada) with a pipeline of new projects. This is an opportune time for Charbone as the world races to find effective solutions to meet its net-zero ambitions by 2050. Green hydrogen could be a perfect fit as a potentially low-emitting fuel source. There is an increasing realization of the potential of hydrogen in serving as a low-emissions substitute for fossil fuels in residential as well as industrial use cases.
The Government of Canada has laid out its hydrogen policy, aiming to meet nearly 30 percent of its energy requirement in 2050 by hydrogen, as well as become one of the top three clean hydrogen producers globally. The presence of abundant hydroelectric power, favorable government policies, and a progressive tax regime should boost hydrogen production in the country. The 2023 federal budget includes more than $17 billion in tax credits over the next five years to help fund clean energy projects, including hydrogen.
Green hydrogen: key element to decarbonize the world
The US Department of Energy expects to produce 10 million metric tons (MMT) of hydrogen annually by 2030 and eventually reach 50 MMT by 2050. According to US Deputy Secretary of Energy David Turk, 50 MMT of hydrogen could power every bus, train, plane and ship in the US.
Charbone stands to benefit from rapid adoption of hydrogen as an alternative to fossil fuels. Moreover, Charbone’s focus solely on “green hydrogen” should further its position among investors looking for opportunities to invest in sustainable energy solutions. Green hydrogen is produced when the energy used to power electrolysis comes from renewable sources like wind, water, solar or nuclear. Charbone has clearly stated its intentions to leverage hydropower and nuclear energy to produce hydrogen.
Project Pipeline and Key Partnerships
Carbone forged strong partnerships to execute its business model.
The company plans to construct 16 hydrogen projects across North America (six in Canada and 10 in the US) over the next four years. The first of which is under construction at Sorel-Tracy in Quebec. The Sorel-Tracy facility is located on a 40,000-square-meter land parcel along Quebec Highway 30, known as the “Steel Highway” because of the numerous steel mills and process plants operating along the highway.
The construction of Phase 1 of its Sorel-Tracy facility is being done in partnership with EBC, one of the largest construction companies in Quebec. EBC has a proven track record of designing and building facilities in Canada and the US. The partnership agreement gives EBC the right of first refusal to construct additional Sorel-Tracy phases, as well as one or all of Charbone’s facilities within the North American market.
In addition, Charbone has entered into several other strategic partnerships all aimed to expand its footprint in North America. The company entered into a special consultancy agreement with Enki GéoSolutions for potential partnership proposals as a co-operator and distributor of an emerging form of clean and renewable hydrogen, known as white or natural hydrogen.
In June 2024, Carbone executed a supply agreement for a complete containerized electrolyzer system ready for shipment to its flagship green hydrogen site in the City of Sorel-Tracy, Quebec. The electrolyzer has a higher capacity than originally planned and will significantly enhance initial operational capacity estimates. The company also acquired its first tube trailer for the transport and bulk delivery of compressed green hydrogen produced from the City of Sorel-Tracy, Quebec flagship project to local and domestic customers.
Superior Plus
This partnership allows Charbone to sell hydrogen produced at the Sorel-Tracy facility to Superior Propane, a subsidiary of Superior Plus. Such supply agreements ensure that Charbone can generate cash flow immediately following the commencement of production.
Carbone Hydrogen entered into an off-take partnership with Superior Plus on the supply and
distribution of green hydrogen.
NEK Community Broadband
Another such supply agreement was signed in November 2023 with NEK Community Broadband, which ensures the supply of green hydrogen in the Northeast Kingdom of the state of Vermont (USA). NEK Broadband is building a high-speed broadband infrastructure and plans to install a hydrogen fuel cell backup system for a reliable power supply.
Oakland County Economic Development Department, Michigan
Further advancing its goal of US expansion, Charbone signed a memorandum of understanding in December 2023 with Michigan’s Oakland County Economic Development Department to set up Charbone’s first green hydrogen facility in the United States. Oakland County is home to major automakers, and a green hydrogen facility in their proximity will support the effort of producing environmentally friendly mobility options.
Being the only publicly listed green hydrogen player in Canada, Charbone offers investors a unique opportunity to participate in the rise of green hydrogen as a potential low-emitting alternative to fossil fuels.
Management Team
Dave Gagnon – Chairman and CEO
Dave Gagnon has been chairman and chief executive officer of Charbone Hydrogen Corporation since April 21, 2022. He has been a climate tech entrepreneur for the last 25 years, and was the first entrepreneur in Canada to start a wind turbine company and offer a new alternative energy solution in North America. Gagnon also worked with an institutional investor that manages several public pension plans, Caisse de depot et placement du Quebec, where he gained deep knowledge of the financial markets.
Benoit Veilleux – Chief Financial Officer
Benoit Veilleux was appointed as the CFO of Charbone on August 15, 2022. Veilleux has over 15 years of experience in corporate accounting and finance. He began his professional career at KPMG in 2003, where he managed and coordinated audit teams for public companies until 2010. Since then, he has worked with a number of companies including Air Liquide Canada and the Hypertec Group.
Daniell Charette – Chief Operating Officer
Daniell Charette has been the chief operating officer of Charbone since February 2019. He brings over 25 years of experience in running and managing renewable energy companies. He has worked in senior leadership roles with several renewable companies including NEG Micon A/S, Vestas and Brookfield Power. He has served on various association boards and councils, including the Canadian Wind Energy Association, Association Québécoise des Producteurs d’Énergie Renouvelable, and Latin Wind Energy Association.
Francois Vitez – Director
Francois Vitez is a hydropower and energy storage expert with more than 24 years of experience in the development, engineering and construction management as well as operations and maintenance of hydropower and energy storage projects in North America and internationally. He is a board member and chair of the Value of Hydropower committee at Waterpower Canada, vice-chair of the Energy Storage Association of Canada, board member of the California Energy Storage Association, and member of the International Hydropower Association.
Patrick Cuddihy - Hydrogen Operations Team
Patrick Cuddihy is a seasoned operations leader with over 20 years of experience at Air Liquide Canada, to its hydrogen operations team. Patrick brings a wealth of expertise in managing industrial gas production and distribution, having held senior roles including network sales director for Quebec Region, general manager for Pacific Region, director of procurement services, and director of logistics and assets for the Eastern Region.
Quarterly Activities Report for the Period Ended 30 September 2024
HIGHLIGHTS
- Daydream-2 well successfully stimulated and flow tested
- Gas flowed from multiple stimulated zones, including deep coals for the first time
- ATP 2077 formally awarded and 173 Bcf additional contingent resources booked
- Elixir’s fiscal position remains strong - $10M at quarter end
MANGAGING DIRECTOR’S REPORT TO SHAREHOLDERS FOR THE QUARTER
The Daydream-2 appraisal well was again the key focus for Elixir during the quarter. The considerable successes of this program (albeit with some ebbs and flows typical of an early stage appraisal program) has provided the Company with a very strong platform to continue to de-risk the Grandis Project.
North America’s considerable experience in large unconventional plays over the last two decades indicates that having multiple operators try different approaches to “cracking the code” to most effectively liberate gas presents by far the optimal approach to really open up such plays.
In this context Elixir is very pleased to be currently accompanied by other active explorers in Queensland’s Taroom Trough. Collectively, considerable sums are being invested, contingent resources booked, knowledge transferred and service sector capabilities continuously improved.
During the last quarter Elixir’s contributions to these collective efforts were material and multiple. These included flowing gas from five out of six stimulated zones, including from deep coals for the first time in this region.
Elixir expects the various current – and likely new – Taroom Operators to expand their efforts in the years to come - to ultimately deliver a lot of gas into the nearby infrastructure that can readily take it to desperately short domestic and international markets.
In the current early stage of such a large play, the teething issues that typically arise include rationing of the required equipment, service sector companies requiring different approaches, etc. Elixir has experienced some of these – but we are convinced that we can see these already being ironed out. For instance, the collective efforts in the region are already leading to interest from the likes of new service sector and infrastructure companies, with highly relevant international expertise and equipment.
During the quarter Elixir was formally granted ATP 2077 – which immediately added 175 Bcf of new contingent resources. The timeline from being notified as preferred tenderer to formal award was very rapid – reflecting the strong Queensland regulatory environment generally and the well established oil and gas presence in the immediate region specifically.
Post the end of the quarter, Elixir was pleased to execute a Memorandum of Understanding with Australian Gas Infrastructure Group (AGIG) to provide a framework under which to better investigate the development of the required infrastructure to take Taroom sourced gas to the nearby market interfaces. Elixir sees this is also an area of potential fruitful cooperation.
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