Helium Evolution Expands and Accelerates Drilling Program Through Enhanced Farmout With North American Helium

Helium Evolution Expands and Accelerates Drilling Program Through Enhanced Farmout With North American Helium

  • First two test wells to be drilled on HEVI lands in Q4/22 by North American Helium (NAH) with third test well to be drilled in first half 2023; costs funded 100% by NAH and HEVI retains a 20% working interest
  • Based on success of the three test wells, NAH commits to expeditiously drill development wells on the earned farmout blocks
  • New seismic option and seismic review option agreements with NAH could expand number of wells to be drilled by ~60%, from five to up to eight
  • At no cost, HEVI to receive NAH's proprietary seismic recently used to drill three successful NAH wells

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration and production company focused on developing assets in southern Saskatchewan, is pleased to announce enhancements and amendments to the existing farmout agreement with North American Helium (" NAH "), through the execution of an Amended and Restated Farmout Agreement dated October 20 th 2022 (the " Amended Farmout "). The Amended Farmout offers HEVI near-term drilling catalysts that can accelerate cash flow generation without incurring up-front capital costs and allows the Company to retain 99% of its land base. At no cost, HEVI will also receive NAH's proprietary seismic that was recently used to drill three successful and producing NAH wells in the Mankota area, giving HEVI greater insight and valuable data that can be used in identifying future targets.

Partnering with an industry leader such as NAH, who is the most active driller of helium wells globally by a wide margin, offers a significant advantage for HEVI. As a result of being aligned with NAH and executing this Amended Farmout, HEVI is ideally positioned to benefit from the continued exploration and development of its asset base by NAH, and to leverage their extensive data, learnings and expertise, without spending capital in the near term. NAH's farm-in allows HEVI to conserve its approximately $10 million in cash and liquid assets while maintaining financial flexibility and future optionality to pursue other targets across the Company's 5.5 million acres of helium rights.

As part of the Amended Farmout, HEVI and NAH also entered into a new seismic option agreement (the " Seismic Option Agreement ") and seismic option review agreement (the " Seismic Option Review Agreement ") (and together with the Seismic Option Agreement, the " Seismic Agreements "), which could expand the number of wells to be drilled by NAH by 60%, from the original five to up to eight. The Amended Farmout supersedes the original farmout entered into with NAH on June 28, 2022 (the " Original Farmout ") and maintains all earning terms and after-earning operations from the Original Farmout.

"This Amended Farmout truly sets HEVI apart from other helium-focused peers, as we are afforded multiple near-term drilling catalysts, including two exploration wells by year-end 2022 and a third drill in the first half of 2023, without spending our own capital and while retaining 99% of our land base," said Greg Robb, President & CEO of HEVI. "In addition, NAH could increase the number of drills from five, contemplated under our Original Farmout, up to potentially eight wells as a result of the Seismic Agreements, an approximately 60% increase. The Amended Farmout allows HEVI to maintain optionality to continue exploration and development of internally-generated targets on our extensive land base, while providing visibility to bring production on stream without subjecting shareholders to dilutive equity financing."

Strategic Benefits of the Amended Farmout & Seismic Agreements

  • Drilling Timelines Accelerated: NAH will accelerate the timeline to drill its first two test wells at Mankota, as defined herein, into Q4/22 and commits to drill a third well in the first half of 2023. If any of these three initial test wells is commercially productive, NAH has committed to expeditiously drill development wells on the related earned farmout blocks, which management expects could be timed to coincide with a potential new NAH processing facility.
  • Receipt of Proprietary Seismic: Under the Amended Farmout, NAH will furnish to HEVI two proprietary seismic lines comprised of 35km of data in the Mankota area, previously used by NAH to target drilling locations, of which three are currently producing helium. Mankota is situated in the first of three predetermined blocks of land in Saskatchewan as outlined in the Original Farmout. NAH will select a fourth and fifth test well location on each of the other two blocks by June 30, 2023, with both wells to be spud by Q1/24.
  • Seismic Agreements Expands Drilling : NAH and HEVI have entered into a new Seismic Option Agreement and Seismic Option Review Agreement, covering two seismic option areas (the " Seismic Option Areas ") and one seismic review area (the " Seismic Review Option Area ") at Mankota. Details of the Seismic Agreements are provided below.

    • Seismic Option Areas: Pursuant to the Seismic Option Agreement, NAH will shoot new seismic, incurring 100% of the cost, in both Seismic Option Areas, the data from which will be provided to HEVI, and earn NAH the right to drill an option well (the " Option Well ") in each of the two Seismic Option Areas prior to August 31, 2023, thereby earning an 80% operated interest in the section on which the Option Well was drilled plus nine contiguous sections of land. Following the drilling of each Option Well, NAH retains an 80% and HEVI a 20% working interest in the operations and lands. If NAH does not spud an Option Well by August 31, 2023, their ability to earn a working interest terminates.
    • Seismic Review Option Area: Pursuant to the Seismic Option Review Agreement, NAH is able to review HEVI's proprietary seismic data covering the identified Seismic Review Option Area, along with data from HEVI's 06-02-06-06W3M well for a 30-day period. Following this review, NAH can elect to drill a well in the Seismic Review Option Area (the " Seismic Review Option Well ") on or before the end of Q2/23, release the option altogether, or shoot new seismic data over the Seismic Review Option Area. If the latter option is elected, NAH would provide the data to HEVI, and have the option to spud a Seismic Review Option Well before October 31, 2023, on the same terms as Option Wells outlined above.

Executing this Amended Farmout provides numerous strategic advantages for HEVI. With NAH committing to drill two wells in Q4/22 and a third well in the first half of 2023, HEVI offers shareholders exposure to near-term drilling catalysts that can accelerate cash flow generation. In addition, HEVI will receive proprietary seismic that NAH used to successfully bring three new helium wells on production, giving HEVI greater insight and valuable data that can be used in identifying future targets. Finally, the execution of the Seismic Agreements will give HEVI access to greater seismic coverage on its land without the associated costs, and provides opportunity to participate in wells drilled by NAH across the Seismic Option Areas and Seismic Review Option Area. All of these enhancements are expected to drive meaningful value creation and strengthen HEVI's longer-term outlook.

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: 587-330-2459
Email: info@heliumevolution.ca
Web: https://www.heliumevolution.ca/
Cindy Gray, Investor Relations HEVIinfo@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 and NAH's exploration and drilling plans, management's expectations regarding startup of a new NAH processing facility, the Company's ability to identify future exploration and drilling targets, the Company's ability to preserve capital, the ability of the Company to bring production of helium on stream, the ability of the Company to delay or avoid dilutive financings, the ability of the Company to generate cash flow, NAH's drilling of development wells, 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, NAH may determine not to startup new processing facilities; the Company may choose to defer, accelerate or abandon its exploration plans; the Company may require additional financing which may be dilutive to shareholders; 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 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.


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

HEVI:CA
The Conversation (0)
Helium Evolution Announces Filing of Q2 2024 Financial Results and Provides Operations Update

Helium Evolution Announces Filing of Q2 2024 Financial Results and Provides Operations Update

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, announces the filing of the Company's interim condensed financial statements and associated management's discussion and analysis for the three and six months ended June 30, 2024 (the " Q2 Report ").

Complete details of the Q2 Report are available on SEDAR+ at www.sedarplus.ca , and on HEVI's website .

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Helium Evolution Provides Operations Update and Announces Amendment of Stock Options

Helium Evolution Provides Operations Update and Announces Amendment of Stock Options

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 provide an update regarding its Mankota helium discoveries.

The 9-18-3-8W3 well (" 9-18 Well ") stimulation is now anticipated to take place later in June or in July 2024. The delay is due to higher than normal rainfall in the Mankota area, which has impacted the surface conditions and postponed the start of the 9-18 Well stimulation.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Helium Evolution Announces Voting Results From Annual General & Special Meeting of Shareholders

Helium Evolution Announces Voting Results From Annual General & Special Meeting of Shareholders

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 report that all matters presented for approval at its annual general and special meeting of shareholders held on May 22, 2024 (the " Meeting ") were approved. A total of 29,481,254 common shares representing 30.7% of the Company's issued and outstanding common shares were voted in person or represented by proxy at the Meeting.

The shareholders voted in favour of all matters set out in the Company's Management Information Circular dated April 22, 2024 (the " Circular "), including the election of all seven director nominees of HEVI for the ensuing year or until his or her successor is elected or appointed. Each nominee received greater than 96% of votes in favour.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Helium Evolution Announces Filing of Q1-2024 Financial Results

Helium Evolution Announces Filing of Q1-2024 Financial Results

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, today announced the filing of the Company's interim condensed financial statements and associated management's discussion and analysis for the three months ended March 31, 2024 (the " Q1 Report ").

Complete details of the Q1 Report are available on SEDAR+ at www.sedarplus.ca, and on HEVI's website.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Helium Evolution Announces Filing of Annual 2023 Financial Results and Provides Operations Update

Helium Evolution Announces Filing of Annual 2023 Financial Results and Provides Operations Update

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, today announced the filing of the Company's annual financial statements and associated management's discussion and analysis for the year ended December 31, 2023 (the " Annual Report ").

Complete details of the Annual Report are available on SEDAR+ at www.sedarplus.ca, and on HEVI's website .

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Aclara Secures Funding from Corfo's Innovation High-Tech Program for Artificial Intelligence Project

Aclara Secures Funding from Corfo's Innovation High-Tech Program for Artificial Intelligence Project

Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that its Chilean subsidiary, REE Uno, has been awarded a research, development and innovation grant of US$ 730,000 from the Innovation Management Division of the Chilean Economic Development Agency ("CORFO") to implement and further develop a new exploration technology using artificial intelligence ("AI") models. Combined with Aclara's own investment, the initiative will have total funding of approximately US$ 1.0 million

This initiative harnesses advanced multi-variable machine learning models to analyze and interpret complex data, revolutionizing rare earth element ("REE") exploration, particularly associated with ionic clay deposits. The algorithms are designed to process large volumes of geological and geospatial data generated both internally as well as acquired from third parties, all of which is stored and organized within a centralized database developed by Aclara.

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
First Helium Reviewing Potential Follow Up Targets to Leduc Anomaly Drill

First Helium Reviewing Potential Follow Up Targets to Leduc Anomaly Drill

First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it is reviewing its extensive drilling inventory for follow up operations to its planned Leduc anomaly drill ("7-15") targeting light oil. This program may include drilling its proven undeveloped 1, 3 location ("7-30"), a follow up well on the Leduc anomaly, or another one of 12 primary Leduc prospects identified on its proprietary 3D seismic at Worsley. Other operations include completion and testing of the existing 5-27 horizontal well, along with the re-entry and completion of an existing vertical well bore at east Worsley, both targeting helium-enriched natural gas in the Blue Ridge formation to establish a regional, repeatable play.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Small Canadian flag on compass pointing to the word "invest."

Ontario Pledges C$13 Million to Junior Miners for Critical Minerals Exploration

The Ontario government has announced C$13 million in funding through its Ontario Junior Exploration Program (OJEP) to support early stage exploration efforts by 84 junior mining companies across the province.

The funding forms part of Ontario’s broader strategy to enhance mineral exploration as the province aims to identify new mineral deposits and foster economic growth in its northern and Indigenous communities.

Launched in 2021, OJEP offers grants covering up to 50 percent of eligible costs for junior mining companies undertaking exploration projects, up to a maximum of C$200,000 per project.

Keep reading...Show less
West High Yield  Resources Ltd. Announces Final Closings of Oversubscribed Private Placement and Shares-for-Debt Transactions

West High Yield Resources Ltd. Announces Final Closings of Oversubscribed Private Placement and Shares-for-Debt Transactions

West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (the "Company" or "West High Yield") announces that, further to its news releases dated August 29, 2024, September 26, 2024, October 9, 2024 and October 11, 2024, it is closing the final tranche (the "Closing") of its previously announced private placement offering (the "Offering") of units (the "Units"). The Company also announces that, further to its news release dated October 9, 2024, it has completed its previously announced shares-for-debt transactions (the "Shares for Debt Transactions") to settle CAD$320,000 in outstanding debt (collectively, the "Debt") owed to with three (3) non-arm's length lenders (the "NAL Creditors") and one (1) arm's length lender of the Company (collectively, the "Creditors").

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
First Helium Initiates Process to License & Drill the Leduc Anomaly

First Helium Initiates Process to License & Drill the Leduc Anomaly

First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it has completed its field survey activities and selected the surface location for its Leduc anomaly test well planned for drilling this winter. The survey will be used to prepare necessary regulatory applications for drilling approval. The well location has been selected based on a thorough evaluation of recently acquired proprietary 3D seismic data where the Company has identified a significant anomaly in the Leduc Formation which it believes to be prospective for oil. To date, the Company has drilled two successful Leduc oil wells at Worsley, including the 1-30 and 4-29 Leduc oil pool discoveries, respectively, which together have produced more than 113,000 barrels of light oil, generating in excess of $13 million in revenue and $8 million in cash flow.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Aclara Receives Support from the U.S. Department of Commerce

Aclara Receives Support from the U.S. Department of Commerce

Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that it is working with the U.S. Department of Commerce's International Trade Administration, through its SelectUSA program, to conduct a study aimed at identifying the optimal site for Aclara's planned separation facility in the United States (the "Location Study

The SelectUSA program fosters business investment that supports economic development and job creation in the United States. To date, SelectUSA has facilitated over $250 billion in investments, creating or retaining more than 230,000 jobs across the country.

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×