FULL DISCLOSURE: This is sponsored content for Total Helium.
Total Helium (TSXV: TOH) is wasting no time in the development of its recently acquired 27,000 acre Pinta South Project, which it holds a 50% working interest in. The company this morning indicated that just weeks after closing on the purchase of its stake in the helium asset, it has begun heavily developing the property.
When Total Helium acquired the working interest in Pinta South, the property had two producing wells (which the company has 20% working interest in), as well as eight additional wells that needed to be connected to the helium processing facility that is on site. Following its purchase, the company has constructed a six mile pipeline, with five of the eight wells now connected to processing infrastructure.
At the time of closing the arrangement, five of the eight wells were said to be drilled and completed, while three wells were said to be awaiting completion.
Notably, industry heavyweight Linde, whom is the largest industrial gas company globally, had previously committed to fund the pipeline expansion. That funding is being used to connect all eight completed wells to the process facility, with Linde also agreeing to pay $500 per Mcf for the helium in those first ten wells as well.
Total Helium has also managed to drill three wells in the last two weeks, and are waiting to be completed. The company has previously indicated that it has an estimated per well drilling and completion cost of $220,000, while the Pinta South property has over 150 potential well locations.
“The fact that we hit the ground running on our joint venture in Arizona is a sign of things to come as we enter a new chapter in Total Helium’s evolution. We appreciate the efforts of our joint venture partners as we work together to drill new wells, install pipeline, and bring helium to a market that desperately needs it,” commented CEO Robert B. Price.
WATCH: Total Helium: Tackling The Helium Shortage – With Robert Price
Lastly, the company is currently in the process of optimizing future drilling locations by conducting a helium soil sample survey. The survey aims to find “sand channel” wells that enhance production rates, as demonstrated by its first two wells which have over 8% helium concentrations. The survey is said to be underway, and is expected to run through to early June.
Total Helium last traded at $0.485 on the TSX Venture.
FULL DISCLOSURE: Total Helium is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Total Helium on The Deep Dive. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
