By David Willey, Benzinga
Helium company Total Helium Ltd. (OTCQB: TTLHF) has announced a joint venture with companies Butler Minerals I and Mid America Exploration for helium exploration and production in a major Arizonan field site.
The helium market is worth $4.4 billion globally, and there is a sustained demand as the market is expected to grow at over 12% annually between 2022 and 2023. However, the global market is currently experiencing a shortage of helium, which is a non-renewable natural gas. Historically, the United States government has been a major contributor to global helium supplies, however, these supplies have been depleted in recent years. By mining helium fields in the U.S., private companies can potentially solve supply chain problems and provide America with a greater degree of helium independence.
The uses of helium go far beyond its well-known role in the balloon industry. Helium finds many uses, including in welding, cryogenics, nuclear reactors, medical devices, semiconductor manufacturing, national defense systems and even rockets.
The current state of the helium market is one reason the company Total Helium is excited about its new joint venture in Arizona. Total Helium is a company that specializes in the exploration, production and storage of helium. The company believes this project will boost helium production volume and sales price for the company, and that it includes future opportunities for expansion.
Total Helium Acquisition And Opportunities To Expand
The deal gives Total Helium a 50% interest in the Pinta South project, along with the acquisition of several existing wells. By the second quarter of 2023, Total Helium plans on having 20 operational wells in the 27,000-acre project, located in Holbrook Basin, Arizona. The project also has opportunities to expand to over 150 potential drill sites.
Pinta South is a helium-rich site, with gas concentrations at 5-8%, significantly higher than the average field’s helium concentration of up to 3%. The shallow target in the fields allows the company to keep drill operations to approximately $220,000. Total Helium plans to continue well development in 2023, and it is in the process of raising $15 million in capital through the sale of new shares to fund this project.
“Total Helium is thrilled to announce this joint venture. This JV is a great complement to Total Helium’s strategy of acquiring already producing assets as we build upon our existing relationship with our industrial gas partner. I have the utmost respect for our joint venture partners, Butler Minerals and Mid America Exploration, who are proven helium finders and producers. It is my belief that this joint venture will create significant value for our shareholders for many years to come,” commented Total Helium CEO, Robert B. Price.
Other companies in the helium industry include Desert Mountain Energy Corp. (OTCQX: DMEHF) and Air Products & Chemicals Inc (NYSE: APD).
Want to learn more about Total Helium? Visit its website.
This article was originally published on Benzinga here.
Total Helium is a helium exploration, production and storage company focused on bringing a reliable domestic supply of helium to the US market. The company’s current footprint includes the Holbrook Basin in Arizona and the Hugoton Gas Field in Kansas. In addition to its helium production activities, Total Helium is establishing an underground helium storage facility with its industrial gas partner to ensure that the United States has a stable supply of helium at all times into the foreseeable future.
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.Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
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