Global Helium Corporation drills first helium well in Alberta

Sept 21, 2023 Via Gasworld

Global Helium Corporation has drilled, logged, and cased its first potential helium well, located on the farm-in land block of Perpetual Energy within the Manyberries, Alberta helium trend.

With the drilling of the initial well, Global Helium has completed the first step in earning on the farm-in block of eight sections. Perpetual will retain a 25% working interest in the project and collect a 7% lessor royalty on the company’s 75% share.

The helium exploration and development company has the option to drill a second well to earn the additional nine sections, under the same terms as the initial well.

Earlier this year, Global Helium increased its landholdings in Southern Alberta by 10,880 acres to a total of 31,360 acres, all in the Manyberries helium trend.

Global Helium has partnered with Perpetual Energy and anticipates drilling at least two helium wells by the end of 2023 to earn the land.

The two companies will share seismic, geological expertise and industry knowledge while working together within the 576-section area of mutual interest.

Royal Helium gears up for production at Steveville helium processing facility

August 22, 2023 Via Gasworld

Royal Helium is one step closer to starting up its Steveville helium processing facility, having confirmed that all the component modules are now on site and both the 12-12 and 10-22 helium wells are tied in.

The mechanical, electrical and instrumentation contractors have been on site since mid-June installing and tying in components as they arrived. With the final two components arriving last week, Royal Helium is entering the final assembly phase and preliminary commissioning.

It was in June (2023) that Royal Helium said that it had started shipping the initial modules of its Steveville helium processing facility to the site as it prepares for first production in the coming months.

Once operational, The Steveville plant will process 15,000,000 cubic feet/day of raw gas fed by the two 100% owned helium wells at Steveville, Alberta and produce 22,000 mcf of 99.999% helium per year.

Andrew Davidson, President and CEO of Royal Helium, said he is pleased with the process that brings the company one step closer to being the first Canadian public helium producer.

He continued, “Having the full facility onsite is a major milestone and is a definitive message to all stakeholders and shareholders that this new industry in the Brooks region is now here and is only the beginning of Alberta’s helium future.”

“Plant operations personnel and services have been organised as we complete the final installation over the coming weeks, concurrent with commissioning, to be followed by full-scale production.”

The engineered life of the plant is 25 years, while both wells are expected to remain on stream for a minimum of nine years. The plant will also produce enough fuel gas to power the plant and up to 22,000,000 pounds of commercial CO2.

Royal Helium has selected Vise Energy Services as the lead mechanical contractor and Medallion Energy Services as lead electrical and instrumentation contractor.

Avanti Helium signs midstream agreement with IACX

July 27, 2023 Via Gasworld

Avanti Helium has signed a binding midstream agreement with IACX Resources Montana, a subsidiary of IAXC Energy, to build, finance, and operate a helium recovery plant to process raw gas from Avanti’s Sweetgrass helium pool.

The helium exploration, development, and production company today (27th July) said it hopes that initial components for the plant will be delivered to the site in Q4 2023, with initial production expected in Q1 2024.

Once operational, the plant is expected to initially process 10 million cubic feet of raw gas a day, with an option to increase production to 15 million cubic feet a day.

Chris Bakker, CEO of Avanti Helium, said that having IACX construct and operate the plant de-risks execution for Avanti.

He added, “We are also pleased to have arrived at fee terms that drastically reduce our need for capital. I would like to thank the entire Avanti team for the huge amount of work done to bring the Company to this tremendously positive turning point.”

Developing the helium recovery plant independently posed a major capex and expertise requirement for Avanti, but through the IACX transaction, and the liquification tolling agreement, the company will have access to the required infrastructure to achieve cashflow in an attractive commercial environment.

Under the terms of the agreement, Avanti will pay a scheduled monthly fee for seven years, with an option to renew annually for the life of the pools.

IACX will build, finance, install, and operate the helium recovery plant on site near the Sweetgrass helium pool. Avanti Helium will be required to complete minor associated infrastructure work to commence production of the plant.

Just last month (June 2023), IACX signed a similar agreement with Blue Star Helium, to supply and operate the company’s recovery plants at its maiden helium development, Voyager.

First Helium signs helium supply deal with industrial gas major

May 25, 2023 Via Gasworld

Helium development and exploration company First Helium has agreed to sell 80% of its produced helium volumes from its Worsley Property in Alberta, Canada, to a major industrial gas supplier.

The long-term helium supply agreement signed by the two companies is worth up to $100m in potential revenue to First Helium over the first five years, depending on the pace of production.

First Helium will receive firm specified pricing for its helium volumes throughout the first five years, after which the agreement provides for price re-determination windows as triggered by either First Helium or the purchaser. A total term of 10 years has been agreed.

The purchaser will be obligated to take, or pay for, all helium volumes delivered, or made available for delivery by First Helium during the term of the agreement, subject to maximum monthly and annual volume quantities.

Ed Bereznicki, President and CEO of First Helium, said, “The take-or-pay and term nature of our sales arrangement, combined with the flexibility to sell up to 20% of our production on a potentially more lucrative ‘spot’ sales basis, will enable us to maximise the value of our helium asset for our investors.”

Bereznicki also notes that the finalisation of the deal will allow the company to proceed with the next steps in bringing its 15-25 helium well into production.

The deal is subject to maximum monthly and annual volume quantities, in accordance with a specified per unit volume pricing schedule.

In addition to announcing its signed helium supply deal, First Helium has also completed the necessary front end engineering design (FEED) study for its Worsley helium gas processing facility.

The company will now work to finalise production details and proceed with the equipment procurement process. First Helium is currently targeting late Q1 2024 for initial helium production and delivery at the Worsley plant.