VVC Exploration Corporation (" VVC " or the " Company ") (TSX-V:VVC) announces the addition of a new gas property in its wholly owned subsidiary, Plateau Helium Corporation ("PHC"), a Wyoming corporation. The transaction bolsters VVC's helium portfolio and its ability to capitalize on the growing demand for helium, driven by increased global usage.
The property, known as the Syracuse Extension 1, was purchased at a nominal cost and a commitment to commence production, with the seller retaining a 2% royalty in the property. In addition to the 2% royalty, standard industry royalties of 12.5% are payable to arm's length land owners from the proceeds of any production. PHC owns a 100% operated working interest in the Syracuse Extension 1 lease subject to the royalties.
Extension 1 is a 320-acre property located in Cheyenne County, Colorado and includes 2 gas wells drilled in 1989-1990 which were never put into production. This property is adjacent to the Tumbleweed Midstream pipeline which is linked to a helium processing plant. Both wells contain methane and helium. At the time of drilling, one well had tested over 2,000 mcf per day and the other, over 3,000 mcf per day, of helium rich gas. These historical results have not been verified by PHC or any other independent party.
Jim Culver, VVC's CEO stated that "This lease acquisition adds to the more than 15,000 acres of Syracuse and Monarch leases in the PHC portfolio. It represents the Company's opportunistic strategy of acquiring selective potential helium properties which we believe can be brought into production quickly and inexpensively and can be managed by the local team managing the Syracuse field. This property will be included in our Syracuse field development plans, with the current expectation of gas production to begin from Syracuse Extension 1 in Q4 of 2021."
VVC is a publicly traded Canadian exploration and mining company listed on the TSX Venture Exchange (TSX-V:VVC). VVC's portfolio includes the Gloria Copper Project in Northern Mexico, precious metals properties also in Mexico and the Helium Projects owned by its wholly owned subsidiary, Plateau Helium Corporation ("PHC"). VVC is currently focused on the development of Gloria Copper Project, as well as the Helium Projects owned by PHC. Visit our website at: https://vvcexpl.com .
On behalf of the Board of Directors
Michel J. Lafrance, Secretary-Treasurer
|For further information, please contact:|
|Patrick Fernet - (514) 631-2727||or||Trevor Burbank - (214) 641-1041|
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FORWARD LOOKING STATEMENTS:
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others: commitment to commence production; which we believe can be brought into production quickly and inexpensively; will be included in our Syracuse field development plans; current expectation of gas production to begin in Q4 of 2021; etc.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding acquisitions, production of helium and other gases, future development and growth, plans for and completion of projects by Company's third-party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third-party relationships, risks related to Covid-19, risks affecting the ability to develop projects, risks in legislative changes in the applicable jurisdictions, risks in decrease of price of helium. No assurances can be given that the efforts by Company will be successful.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements, except as required by law.
Investors are cautioned that notwithstanding the expectations described herein, there can be no assurance that the plans described herein will be completed as proposed. Trading in the securities of VVC should be considered highly speculative. All forward-looking statements contained in this press release are expressly qualified in their entirety by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com ).