First Helium (TSXV: HELI) this morning announced that it has acquired certain infrastructure pieces for the ongoing development of its helium assets in western Canada. The firm has acquired certain pipeline assets in addition to further land.
The acquisition has seen the company acquire 40 kilometres of “natural gas gathering pipeline assets.” Acquired for just $25,000 in cash and abandonment and reclamation liabilities of up to $200,000 in the future, the deal reportedly saves the company $6 million to $8 million in capital costs.
The pipeline runs across the firms land base along the Worsley trend, and will be connected to the firms processing facility that is currently in the planning stage. Surplus natural gas produced from its wells are expected to be transported to market via the new pipeline assets.
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Also included in the acquisition is a further 1,920 acres of land and two previously operating wells that are now suspended. The wells are being re-evaluated for production, with one well containing a historical 0.83% helium content, and the other having a figure close to 1.0% while being tied into the pipeline network.
First Helium last traded at $0.25 on the TSX Venture.
Information for this briefing was found via Sedar and First Helium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
