VVC Exploration Corporation (" VVC " or the " Company ") (TSX-V:VVC) announces the addition of a new helium property in its recently acquired, wholly owned subsidiary, Plateau Helium Corporation ("PHC"), a Wyoming corporation. The transaction bolsters VVC's ability to capitalize on the growing demand for helium, driven by increased global usage.
The property, known as the Monarch Lease, was purchased from Monarch Petroleum ("MP") at a nominal cost and a commitment to recommence production, with MP retaining a 3% royalty in the shallow well rights from surface to 3100 feet (the "Shallow Rights") and a 50% non-operated working interest in the deep oil and gas rights below 3100 feet (the "Deep Rights"). In addition to the 3% royalty, standard industry royalties of 12.5% are payable to arm's length land owners from the proceed of any production.
The Monarch Lease is a 1,720-acre property that is located in the Byerly Field in Greely County, Kansas and includes six formerly producing gas wells that are still connected to the Tumbleweed Midstream pipeline. All wells produced both methane and helium. PHC believes that production on these wells can be restarted with only minor re-work. Re-work on the Byerly field will commence immediately with the current expectation that the existing wells can be fully operational within 60 days.
"This Monarch Lease acquisition is a tremendous success for the PHC as it represents the second phase of its expanding helium and gas portfolio" said Bill Kerrigan, President of PHC. "Combined with the Syracuse Helium Project, PHC's properties now cover almost 15,000 acres, which is sufficient to address the short-term goal of bringing existing wells into production."
The Byerly Field is near PHC's 13,000-acre flagship Syracuse Helium Project, known as the Syracuse Field (see News Release of January 27, 2021) . Currently, PHC is reworking existing wells on the Syracuse Field and plans to drill new wells in Q2 of 2021.
PHC owns a 100% operated working interest in the Shallow Rights of Monarch Lease and a 50% operated working interest in Deep Rights, subject of course to the royalties. In the deep zone, MP will be required to contribute 50% of any expenses toward developing those areas.
About VVC Exploration Corporation
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: http://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 | |
| pfernet@vvcexploration.com | trevor@vvcexpl.com | ||
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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: PHC believes that production on these wells can be restarted with only minor re-work; Re-work on the Byerly field will commence immediately with the current expectation that the existing wells can be fully operational within 60 days; Combined with the Syracuse Helium Project, PHC's properties now cover almost 15,000 acres, which is sufficient to address the short-term goal of bringing existing wells into production; and plans to drill additional wells; 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, 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 ).
