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Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, is pleased to announce a joint initiative with its partner and the operator, North American Helium Inc. (" NAH "), to embark on an ambitious drilling program in the Mankota area of Saskatchewan.
HEVI and NAH are planning to drill up to nine joint development wells (the " New Wells ") which are expected to spud between Q3 2024 and Q2 2025, subject to surface and environmental restrictions. With HEVI's 20% working interest in the New Wells, the Company is positioned to capitalize on this strategic expansion, building upon three existing helium discoveries at Mankota, including the commercially viable 2-31 Well, as defined herein and as outlined in the Company's press release on February 26, 2024 . The Company intends to work with NAH over the coming months to determine specific well locations and timelines.
"NAH's decision to pursue drilling of an incremental six to nine wells demonstrates confidence in our ongoing partnership, builds on our existing three helium discoveries at Mankota, and highlights the opportunity to unlock value from HEVI's 5.6 million acres of prospective land in Saskatchewan," said Greg Robb, CEO of the Company. "HEVI is truly unique among our peer group, offering investors access to a very active, growth-oriented company with indirect exposure to the industry's leading Canadian helium producer in privately-held NAH. Further, we are the only public helium company with three helium discoveries, an additional six to nine new wells targeted to commence drilling within the next year, and a healthy balance sheet with positive working capital."
The additional drilling and development of the New Wells provides HEVI multiple catalysts and potential news events from now until the Company achieves first helium sales, expected in 2025. The Company is also pleased to confirm that HEVI has acquired an additional four sections of land (" 4 Crown Sections ") that was previously unleased and is adjacent to existing HEVI and NAH development in the Mankota area, effectively filling in an area near the heart of existing helium activity.
HEVI Upcoming Milestones and Catalysts - 2024 / 2025
The accompanying map provides a visual overview of the Mankota area, showing existing wells and the location of the proposed 12-30 helium processing facility.
2-31 Well
- HEVI's first helium discovery well at 2-31-2-8W3 (" 2-31 Well ") was successfully stimulated and tested at economic rates with a helium concentration of 0.95%, more than three times the 0.3% level deemed commercially viable.
- Negligible volumes of water were produced at the 2-31 Well, a positive indication for helium recovery and processing.
9-18 Well
- After initial testing, HEVI's discovery well at 9-18-3-8W3 (" 9-18 Well ") had a preliminary helium concentration of 0.78% and no water.
- The 9-18 Well is awaiting stimulation, with timing subject to surface conditions.
9-35 Well
- HEVI's discovery well at 9-35-3-9W3 (" 9-35 Well ") has been shut-in for the requisite 21-day period to collect reservoir pressure data for interpretation. The Company and NAH are currently evaluating the results to determine next steps.
14-20 Location
- HEVI and NAH intend to drill an offset location to the 2-31 Well (the " 14-20 Location ") designed to further delineate the helium pool. Due to environmental restrictions, the 14-20 Location will not be drilled until after September 15, 2024.
New Well drilling program
- HEVI and NAH intend to drill six to nine New Wells, inclusive of the 14-20 Location, on the joint lands noted in the accompanying map, placing the New Wells in proximity to NAH's producing Mankota pool and as a continuation of the trend being developed at Mankota.
12-30 Facility
- NAH has received approval for a facility license at 12-30-2-8W3 (the " 12-30 Facility "), approximately 1,500 metres from the 2-31 Well.
- A final investment decision (" FID ") on the 12-30 Facility is expected subsequent to further delineation of the adjacent helium pool, followed by construction and commissioning, with the goal of supporting first helium sales in 2025.
HEVI intends to continue updating the market on significant events and developments as information becomes available.
Stay Connected to Helium Evolution
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 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.
For further information, please contact:
| Greg Robb, President & CEO Kristi Kunec, CFO | Phone: 1-587-330-2459 Email: info@heliumevolution.ca Web: https://www.heliumevolution.ca/ |
| Cindy Gray, Investor Relations | heviinfo@5qir.com | 1-403-705-5076 |
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 future production from the 2-31 Well, the 9-35 Well and the 9-18 Well, the Company's expectations regarding scalable helium production and unlocking value from its land generally, the Company and/or NAH's plans with respect to shutting in the 9-35 Well for a 21-day period and the interpretation of results, the Company and/or NAH's plans with respect to the drilling of the New Wells inclusive of the 14-20 Location including the timing, the Company and/or NAH's plans with respect to stimulation operations on the 9-18 Well including the timing, timing of the FID, the Company and/or NAH's plans with respect to drilling an offset location and constructing a facility, the Company's intention to provide further updates regarding catalysts and significant updates and developments, the Company becoming a leading supplier of sustainably-produced helium, timeline of future updates, the Company's beliefs regarding growth of the global helium market 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:  NAH  may  be unsuccessful  in  drilling  commercially  productive wells; the Company and/or NAH may abandon or defer plans for continuing the completion, testing and evaluation of the 9-35 Well and/or the 2-31 Well and/or the 9-18 Well; the Company and/or NAH may choose to defer, accelerate or abandon its exploration and development plans, including the drilling of the New Wells and the 14-20 Location; the Company and/or NAH may determine not to bring the 9-35 Well, the 9-18 Well or the 2-31 Well onto production; the Company and/or NAH may decide not to construct the 12-30 Facility; 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 and the Company's working capital position; constraint in the availability of services; commodity price and exchange rate fluctuations; 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 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  news  release  are  expressly  qualified  by  this  cautionary  statement.  The  forward-looking  statements contained  in  this  news  release  are  made  as  of  the  date  of  this  news  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.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a212f8b8-89cc-4ec9-9400-2717ccf7e768
https://www.globenewswire.com/NewsRoom/AttachmentNg/9c598ca8-ab26-4b31-b2e5-f5def0a86adf
