Oleblue
2 weeks ago
Developments Enter Into a $25 Million Economic Partnership and LOI for Resource Development and New Facility Construction in Saskatchewan
CNW Group
Tue, Apr 16, 2024, 9:46 AM EDT
SASKATOON, SK, April 16, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") and Sparrow Hawk Developments Ltd. ("Sparrow Hawk") are pleased to announce that they have entered into an Economic Participation Agreement (the "Agreement") and a letter of intent (the "LOI") for a $25,000,000 joint venture investment by Sparrow Hawk in the development of Royal's Val Marie helium project located in southwestern Saskatchewan.
Under the terms of the Agreement and the LOI, Sparrow Hawk will invest $25,000,000 into the drilling and completion of new wells, as well as the construction of the associated helium purification facility. Pursuant to the LOI terms, Sparrow Hawk will have an approximate 57.5% non-operating working interest in the wells and an approximate 46% non-operating interest in the processing facility.
Mr. Andrew Davidson, Chief Executive Officer of Royal Helium states, "This joint venture represents an exciting next step in Royal's mission to advance the development of its extensive helium resources and bring additional facilities online each year. Of equal importance, this partnership highlights Royal's commitment toward further inclusion of First Nations groups in the resource development activities and the economic growth in the province. This historical partnership with Sparrow Hawk to advance the economic development in the Treaty 4 Territory is an important first step toward these objectives. This important Agreement and LOI ensures First Nations participation at the earliest possible stage for resource development in the province with a shared commitment to economic reconciliation and benefit."
Mr. Alex Fallon, CEO of Sparrow Hawk states, "This partnership and our planned ownership in helium production plants and of the helium resource itself, is not only a form of economic reconciliation, but it also sets the path for a multimillion-dollar investment to develop Saskatchewan's helium sector and export helium to customers around the globe."
"This is a historic partnership that will provide Sparrow Hawk with ownership in a major critical minerals project and honours the spirit of Treaty 4 which was to share the resources in this land," Mr. Fallon continued.
About the Val Marie Project
The Val Marie helium project comprises a 32,000-acre, 21 year lease land package representing approximately 3% of Royal's current helium permit and lease lands across Saskatchewan and Alberta. Val Marie is located immediately north of the Saskatchewan-Montana border sitting atop the Bowdoin Dome, a large geological uplift system that has been a prolific natural gas production area with successful helium production wells recently drilled on the Montana side of the structure. The Company drilled its initial well at Val Marie in August of 2022 with some of Royal's highest helium showings to date from drill bit gas detection equipment from multiple stacked zones – the Duperow, Souris River and Deadwood formations.
Sparrow Hawk – Royal Partnership
The partnership agreement will also see Sparrow Hawk support Royal's economic reconciliation strategy:
Sparrow Hawk and Royal will work together to advance economic reconciliation in Treaty 4 territory and seek to create employment opportunities for Peepeekisis Cree Nation and First Nations people in Saskatchewan's growing helium sector.
Sparrow Hawk and Royal commit to partnering on future helium opportunities in Saskatchewan as and when they materialize.
Sparrow Hawk will engage First Nation's training organizations to provide Indigenous culture training and education opportunities to Royal and its subcontractors.
Sparrow Hawk will play a lead role in engaging other First Nation organizations and partners to work together on economic opportunities that may arise as a result of this partnership.
The Agreement and LOI are subject to final financial arrangements, provincial, regulatory and TSX Venture Exchange approvals.
About Sparrow Hawk Developments
Sparrow Hawk Developments Ltd., is the economic development corporation for Peepeekisis First Nation. Located in the Qu'Appelle Valley in Southern Saskatchewan, Peepeekisis First Nation is 3,148 people strong. Chief Canahhachapew (Making Ready the Bow) signed Treaty 4 on September 21, 1874. Peepeekisis, Cree: ??????, pîhpîkisîs, literal meaning: Sparrow Hawk. More information can be found at: www.sparrowhawkdevelopments.com
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company's expansive footprint includes prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas ("GHG") and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither 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 news release.
This news release includes certain statements that may be deemed to be "forward-looking statements". All statements in this news release, other than statements of historical fact, that address events or developments that management of the Company expects, are forward-looking statements, including, the settlement and execution of the definitive agreements, financing arrangements, provincial and regulatory approvals, and the potential participation of the federal and provincial government in the joint venture and investment. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedarplus.com for further information.
Sparrow Hawk Developments Ltd. logo (CNW Group/Royal Helium Ltd.)
SOURCE Royal Helium Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2024/16/c4780.html
https://finance.yahoo.com/news/royal-helium-sparrow-hawk-developments-134600655.html
Oleblue
3 weeks ago
ROYAL HELIUM ENTERS INTO INITIAL OFFTAKE AGREEMENT FOR THE SALE OF FOOD AND BEVERAGE GRADE CO2
CNW Group
Tue, Mar 26, 2024
SASKATOON, SK, March 26, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it has entered into its first offtake agreement (the "Agreement") for the sale of food and beverage grade CO2 from its Steveville Processing and Purification Facility. This initial offtake agreement has a term of three years and will primarily serve markets in the Pacific Northwest Region of the United States.
David Young, President of Royal Helium states, "this agreement marks a significant expansion of the economics of Royal's initial facility, showcasing the Company's commitment to growth and innovation. This agreement not only propels us forward in our mission to sell a diversified set of value-added gases but also serves as a testament to the multifaceted commercial products generated from our facility, which provide multiple economic cash flow streams for shareholders. This first agreement is a testament to our strategic approach to fully monetizing each facility, and we anticipate further opportunities to meet the growing unmet demand for CO2, and purified commercial products, across various underserved markets in the US."
Due to the competitive nature of these negotiations, and the fact that Royal is in continuing negotiations for further contracts, disclosure over volume and price will not be made at this time. Royal Helium will keep the market informed with updates on its CO2 business as they unfold.
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore the plant has a low GHG footprint when compared to plants in other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Andrew Davidson
Chief Executive Officer
Royal Helium Ltd.
https://finance.yahoo.com/news/royal-helium-enters-initial-offtake-093000900.html
Oleblue
1 month ago
Royal Helium unveils plans to have multiple facilities operational in the ‘short-term’
By Molly Burgess, Feb 29, 2024
Royal Helium has unveiled its 2024 development plans, with its CEO saying that the Canadian helium exploration and development company will have multiple facilities operational in the short term.
The company’s plans will be centred on completing and testing existing wells in the Val Marie, Ogema, and Steveville properties and new drilling on a 40-mile project in Alberta, Canada.
Andrew Davidson, CEO of Royal Helium, said that the company is pleased to be focused on determining the site for the next processing facilities.
Steveville
In 2023, Royal Helium is considering a strategy that could extend the operational lifespan of its Steveville project by 33%. The company’s helium purification plant in Steveville has the capacity to produce approximately 22,000 million cubic feet of helium with a purity of 99.9999% per annum.
Originally, the Steveville-1 well was not intended for production following its initial testing. However, a review of geological data since August 2022 has uncovered a previously overlooked section within the well that has the potential for resource production.
With that said, Royal Helium is now planning to conduct tests on this newly identified area to explore its productivity.
Omega
An additional project that Royal Helium is looking to pursue this year is the Omega project, based in Saskatchewan, a Canadian province that has a strong Helium Action Plan in place.
The Ogema project in south-central Saskatchewan is comprised of more than 60,000 acres and is home to the easternmost helium wells drilled in Saskatchewan.
The wells were drilled and partially tested in 2021, but upon receiving legislative permitting changes in 2023, Royal is planning to perforate and test the Ordovician Red River formation within the wellbore with the view of making a production and plant decision.
Saskatchewan’s Red River formation has long been a prolific oil and gas producing formation that boasts helium prospectively with the numerous shows across the province.
The formation has returned the highest concentrations of helium historically, with test results as high as 2.45%.
Val Marie
Another focus for Royal Helium is the Val Marie project in southwest Saskatchewan, a 27,000-acre site that is owned by Royal Helium under a 21-year lease. The site of the most recent well drilled in the portfolio, the Val Marie-1 well is awaiting completion and testing of the zones of interest encountered in the 2022 drill programme.
The Val Marie-1 helium exploration returned the highest background-level helium results that Royal has encountered to date, including the Steveville field. Royal will be completing and flow testing these stacked shows in the Devonian and Cambrian horizons.
Royal Helium’s Val Marie field sits upon the Val Marie Arch on the northern flank of the Bowdoin Dome. One of the earliest projects in the Royal portfolio, Val Marie has long been a high priority field. The Bowdoin Dome is thought to be the dominant structure allowing the migration of helium into southwestern Saskatchewan reservoirs.
Davidson concluded, “This is firmly the goal of all development work that will be completed in 2024. Given the drilling activities completed from 2021-2022, Royal Helium is uniquely positioned to move from one facility to multiple in the short-term.”
https://www.gasworld.com/story/royal-helium-unveils-plans-to-have-multiple-facilities-operational-in-the-short-term/2134897.article/
Still looking for a bottom.
canthelpit
1 month ago
PSRHF I THINK THEY STILL HAVE A LONG WAY TO GO,,, UP AND DOWN ON THE SP AND THEN THERE WILL BE DILUSION FOR FINANCIMG,,, AN ENTRY AT .30-.40 FOR ME,,,, NEED MORE INFO ON THEM AND TIME ,,,GOT COUCHT IN ARGYF THAT SAME WAY,,,,,, GOOD BONES TO THE COMPANY AND BRIGHT FUTURE JUST JUMPED IN TO EARLY ,,,,, THEY HADE THE RIGHT PR'S AND MANY ON ENTRY POINT ARGYF ...NOW NOT SO,,, ROYAL FOR SURE A HOLD AND STACK,,,
canthelpit
4 months ago
NEWS
Royal Helium’s Bank Line Expands as the Company Prepares to Deliver Additional Helium Trailers to Market from its Steveville Helium Processing Plant
January 3, 2024
Saskatoon, SK, January 3, 2024 – Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it’s senior lenders, Business Development Bank of Canada (“BDC”) and Canadian Western Bank (“CWB”), have expanded the Company’s debt facilities (see news release of February 6, 2023), increasing them by a total of CAD $3.6 million. Proceeds from the bank facility will fund final costs relating to the Steveville facility and will have the same terms as the prior facility except for the principal repayment start date being moved out to February 2024.
Andrew Davidson, President & CEO of Royal states, “We are appreciative of the ongoing support and confidence by our senior banking partners Canadian Western Bank and the Business Development Bank of Canada. Both CWB and BDC have been strong and steadfast partners to Royal through the Company’s Steveville Facility development process, and we are proud to continue and expand upon that relationship as this first-of-its-kind purification facility is now fulfilling its mission to deliver purified helium to end-markets with deliveries officially having commenced.”
The Steveville plant is designed to 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. The engineered life of the plant is 25 years while both wells are expected to remain on stream for a minimum of 9 years. The plant will also produce enough fuel gas to power the plant and is capable of producing up to 22,000,000 pounds of commercial CO2.
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.
canthelpit
4 months ago
The big picture for RHC and what investors are missing
DD
In regards to Royal Helium, $RHC.V, I think some of investors are missing the big picture.
So to briefly recap what Royal Helium - RHC.V has accomplished in the last 30months…
From their first helium discoveries at climax back in March of 2021 they went and drilled a bunch of wells. Val-Marie, Omega… They then bought out another company, Imperial helium, and their 3 helium wells. Royal Helium then built a production facility and now helium is being shipped to a liquifaction plant in Colorado (You might want to google liquifaction plant Saskatchewan and read up on their plans) Royal Helium is also a founding member of HeDAC(Helium developers association of Canada), which was formed in September of 2023.
In regards to share dilution, dilution will happen in every Junior mining company. It goes without saying. Without warrants the share count stands at 260million? I believe. Current market cap is $54million @ 20c
Dean is also a salesman. He pisses me off too. I see the comments on various boards. But he still managed to prove RHC land claims by drilling several successful helium wells. RHC even found economical?grades of lithium at its climax location. They also discovered a helium trend line between Climax and Omega wells quoted as being a “Helium kitchen”. They bought out Imperial helium and built a state of the art helium processing facility. ALL within 30months of hitting their first helium wells.(It’s worth saying twice)
Even the premier of Alberta attended the grand opening of this state of the art helium production facility. Granting RHC not only media attention but other, larger oil and gas companies have probably taken notice. Unions, pension funds…uplisting… think of what has been accomplished in the last 30months. Now picture 30months from now.
Where do I think RHC is heading?
It seems pretty obvious to me that Royal Helium went around and proved their land package first.(They never missed a helium drill) They built a processing facility and now that they are generating income, they need to expand at a rapid pace.
Either they secure a large credit facility to move forward with the project
Or
Royal will get the backing of a major oil and gas partner, maybe even North American helium going forward to get more processing facilities online.
Or
they will get bought out by a larger company.
People might think the share price is low, which is it. But find me a pre-production venture market company that didn’t dip 50% or more in the last 18months. The venture market as a whole took a MAJOR beating in the last 18months… 1100ish points down to less then 500.
Simply put the market cap for RHC is way too low considering what they are sitting on. Helium prices are going up. Equilibrium means Russian gas plants coming online… the last one caught fire 1month after starting production back in 2020? 2021? Is that really what you want to rely on to say “helium prices will go down in three years because Russia…” that makes no sense to me.
As the interest rates come down in 2024 I’m sure the share price will improve and reflect the true value of the RHC market cap.
Ignore the FUD. RHC management has done exceptionally well to get to this point.… which is get to first production and prove their land claims in 30months time. That is an accomplishment.
For comparison, look at what NA helium(North American Helium) managed to accomplish between their first production facility coming online in 2020 to today. That should give you an idea of what RHC should be able to accomplish in the next 36months.
canthelpit
4 months ago
Royal Helium Commences Deliveries of Purified Helium to First U.S. End User Customer
Saskatoon, SK, December 20, 2023 – Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (TSXV: RHC.WT.A) ("Royal" or the "Company"). Royal helium is pleased to announce that Royal has officially commenced delivery and sales of purified helium, for its North American aerospace offtake partner. Sales are initiated at Royal’s plant gate from its first helium purification facility located in Princess, Alberta, Canada with the trailers first destined for Colorado to be liquified and with the liquid helium then being transported to the customers site in the US. Royal has ongoing transportation and liquefaction agreements in place with its customer assuming these costs.
Royal’s CEO Andrew Davidson comments, “Today’s delivery is the result of the hard work over the past year by Royal’s team and several top groups and companies involved with the engineering, fabrication, and construction of Royal’s state-of-the-art purification facility. The Steveville plant processes upwards of 15 million cubic feet of raw gas produced by two of Royal’s 100% owned Steveville wells. We are proud to be able to say that the Steveville plant is the first of its kind in the world and has the lowest carbon footprint and emissions amongst any of its peers globally.”
Mr. Davidson continued, “This first delivery occurred just days after the Premier of Alberta, Danielle Smith headlined the inauguration of the Steveville helium purification facility. Though physically located in Newell County, Alberta, the Steveville Purification Facility will connect to Canada and the whole of North America, delivering purified helium to critical industries such as health care, semiconductor manufacturing and small modular reactors (“SMR’s”) for energy. As Royal moves forward to replicate its upstream to downstream capabilities throughout its sizeable geological landholding footprint, Royal can respond to the ever-growing demand for helium both domestically and overseas. Canada has always been a strong trading partner with the U.S. and looks to expand relationships even further to Western European and Asian nations to help reduce their dependency on helium supply from less stable supply regions.”
Royal’s flagship purification facility has entered into offtake agreements relating to 100% of its volumes to a leading North American aerospace and defense firm. The Company is already in discussions with various other parties regarding offtake purchase commitments from Royal’s purification facilities that are planned for the coming year.
Executive Vice President and Head of US Operations David Young states further, “While the global supply of helium is increasingly constrained, global demand continues to grow at record pace driven by equally explosive growth across industries dependent upon purified helium to advance their missions. Key industries reliant on this valuable green gas include healthcare, semi-conductor chip manufacturing, fiber optics, aerospace and defense, and quantum-computing, just to name a few. A great number of these industries are currently headquartered or operating in the U.S., and many of these industry players, such as semiconductor and chip manufacturers, have already announced multi-billion-dollar expansion initiatives in the U.S. As one of the only vertically integrated developers and purifiers in North America, Royal intends to be at the forefront delivering highly purified helium to these markets”.
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.
For more information, please contact the Company.
Spiro Kletas
VP Investor Relations
1 (306) 500-9397
spiro@royalheliumltd.com
Dean Nawata
Business Development
1(306) 500-9420
dean@royalheliumltd.com
canthelpit
4 months ago
Royal Helium Joined by Alberta’s Premier and Local Political Leadership for Inauguration of Royal’s Steveville Helium Purification Plant
Saskatoon, SK, December 18, 2023 – Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (TSXV: RHC.WT.A) ("Royal" or the "Company") is pleased to report that it held the inauguration of Royal’s Steveville Helium Purification Facility on Saturday the 16th of December. Honored speakers at the event were, MLA Brooks-Medicine Hat and Alberta Premier Danielle Smith, John Petrie, the Mayor of Brooks and Arno Doerksen, Reeve, Newell County. Also in attendance were the Federal Member of Parliament Bow River Mr. Martin Shields, Assistant Deputy Minister, Energy and Minerals, Mike Simpson and several council members for the city of Brooks and Newell County.
Highlighting the economic benefits of the facility to the County, Province and Canada, Premier Smith delivered a strong speech commending everyone on the significant accomplishment in building the first of its kind plant in the world here in Alberta.
President and CEO, Andrew Davidson, states, “We thank Premier Smith, and all the local officials, dignitaries and members of the community who joined the Royal Helium team in the inauguration and tour of the one-of-a-kind Steveville Helium Facility. The facility, now in operation, is an impressive piece of engineering and provides the lowest carbon footprint amongst any of its peers globally. Royal, while finalizing trailer fill for its first deliveries, is also in discussions for additional offtake commitments for upcoming projects in 2024.”
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.
canthelpit
4 months ago
How to cash in on the Helium demand RHC.V, AVN.V, DME.V
How to cash in on the Helium demand: RHC.V, AVN.V, DME.V
Vishal Toora
December 13, 2023
Helium was one of the top commodity performers of 2022, and with recent supply imbalances, many investors are looking to cash in on the helium demand.
First off, why helium? (By the way, we are not talking about the Helium (HNT) cryptocurrency).
So what exactly is helium? After hydrogen, helium is the second most abundant element in the universe. It is also the second lightest making it easy to slip out of the Earth’s atmosphere. A lot of it is found deep under the Earth’s crust, and actually, in the same layer where natural gas is found. This is why helium mining occurs near current gas lines.
Extraction can be a challenge:
Helium is mined along with natural gas, using a drill rig to drill wells deep into the earth’s crust. A drill rig must penetrate a layer called the Cap Rock to reach a natural gas reserve. Once located, the natural gas and Helium rise and fill the rig, which are then led through a series of piping systems that transport the natural gas and crude Helium to a refining plant.
Most crude Helium tapped from natural gas reserves is only around 50% pure, so other gases must be separated through a scrubbing process. There is a significant amount of Nitrogen in crude Helium, as well as methane gases that must be removed. Cryogenic separation units compress the crude Helium, cooling the gases at subzero temperatures until they are liquified. Once liquified, the Nitrogen and methane gases are drained.
After this cooling process, heat and Oxygen are added to remove any Hydrogen left over. When Hydrogen and Oxygen molecules meet, they create water. The gases undertake an additional cooling process, in which the Hydrogen and Oxygen are drained from the mixture. Once Helium has gone through each of these steps, tiny particles are added to complete additional purification until the Helium reaches 99.99% purity.
Helium has many important applications. One intriguing thing for investors is the fact that helium cannot be substituted for many of these applications! We are talking about helium being used to cool magnets in MRI machines and in manufacturing semiconductor chips. Industries such as aerospace, fiber optics and welding all need a bit of the helium. Hence, shortages will be a real problem.
Helium supply has tightened and prices have climbed in recent years, owing in part to the gradual depletion of the U.S. strategic helium reserve along with a cascading series of four global helium shortages since 2006.
With the fundamental backdrop of less supply and high demand, helium prices will remain buoyed. Here are the other uses for Helium:
1. Heliox mixtures in respiratory treatments for asthma, bronchitis and other lung deficiencies
2. MRI magnets
3. High speed Internet and Cable TV
4. Mobile phone, computer and tablet chips
5. Computer hard drives
6. Cleaning rocket fuel tanks
7. Microscopes
8. Airbags
9. Detecting leaks, such as in the hull of a ship
10. Shielding in welding
A recent headline regarding helium which turned the heads of investors came from the land down under. The only helium production plant in the southern hemisphere located in Darwin, Australia has shut down after its gas supply was exhausted. BOC had been producing helium as a by-product from the Santos-owned Darwin LNG plant since 2010.
Australia will still get its helium, but it must be imported. This will likely mean it will cost more due to transportation versus being produced domestically.
BOC’s Darwin helium plant produced about 3 percent of the world’s helium supply, far behind the United States and Qatar which dominate the global helium market.
But for us Canadians, there has been a rush of activity in Alberta and Saskatchewan as helium startups on the Prairies hope to keep domestic supplies afloat. And this means an investing opportunity for us.
Canada is a player in this field. As Equity Guru’s Gaalen Engen mentioned in his recent Helium Shortage 4.0 article:
The U.S. Geological Survey has estimated that Canada hosts helium resources of approximately 70 billion cubic meters, making it the fifth largest helium reserve in the world. Most of these reserves are in Saskatchewan, but parts of Alberta, BC and Manitoba have shown good potential for development.
The Government of Saskatchewan launched its Helium Action Plan at the end of 2021 with the aim of being able to supply 10% of the global helium market by 2030. The provincial governing body also expanded the Saskatchewan Petroleum Innovation Incentive program to include helium projects.
To further cement Saskatchewan’s position as helium leader in Canada, North American Helium opened its $30 million CAD Battle Creek Helium Purification Facility, the largest facility of its kind north of the 49th parallel.
That same year, Royal Helium (RHC.V), an explorer based in Saskatchewan, announced a helium discovery at its Climax project, noting it had the potential to be one of the largest helium discoveries in the province’s history.
In October 2023, five helium startup companies came together to form the Helium Developers’ Association of Canada, an industry group representing companies at various stages of exploration and production.
The group believes Canada has the resources and know-how to become a greater player in the global helium market, and says it is particularly well-suited to producing helium for North American consumption. It’s pushing for favourable government policies to ramp up production as soon as possible.
But other nations such as Russia and Qatar are also ramping up production. This means the world could see oversupply later on in this decade. However, Canada would be a stable, friendly, and valuable provider for helium. And factoring in geopolitics, Canada would ensure the supply of Helium to the United States and North America.
Here are three Canadian Helium stocks that investors should keep an eye on in order to make gains from the helium trend.
Royal Helium (RHC.V)
Market Cap ~ $54 million
Royal Helium is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta, making them one of the largest helium leaseholders in Canada.
All of Royals’ lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land near existing helium producing locations.
Royal Helium’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore the plant has a low GHG footprint when compared to plants in other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
TradingView Chart
The stock is clearly in a downtrend with a major gap being formed in November 2023. This came from a private placement.
Recently, the stock closed and broke below a major support zone around $0.205. Now, the stock has pulled back to retest the breakdown zone. In technical terms, one would expect to see sellers pile in here and force another leg lower. The next support target would come in much lower around the $0.10-$0.12 zone.
But the stock could turn things around.
We would want to see a daily candle close back above this $0.205 zone. This would signal a false breakdown, and the bulls taking back control. A close above $0.22 would see us take out the current lower high, the price level which keeps the downtrend going. The final bullish trigger would be a gap fill with the stock closing above $0.27.
Avanti Helium (AVN.V)
Market Cap ~ $33 million
Avanti Helium is focused on the exploration, development, and production of helium across western Canada and the United States. Its exploration and development assets include approximately 78,000 acres within the Greater Knappen area, which covers land in both Southern Alberta and Northwest Montana, US. It also owns approximately 63,000 acres of prospective helium permits within Southwest Saskatchewan.
Avanti’s Sweetgrass pool project in Montana is on track to achieve helium production in the first half of 2024, the company reported in October. Avanti is working on obtaining a finalized offtake agreement for production at Sweetgrass. This means cashflow coming into sight.
TradingView Chart
The stock also gapped down in early November 2023 on financing news.
Now, the stock is within a range with support at $0.36 and resistance at $0.44. Bulls want to see a daily close above $0.44. However, there is a large gap that the stock would need to fill. Gaps tend to be an area of resistance which sees sellers jump in. BUT, if bulls can close and fill the gap, then it is a very bullish sign. This means the stock needs a close above the $0.50 zone in order to fill the gap and see the bulls take control.
Desert Mountain Energy (DME.V)
Market Cap ~ $29 million
Desert Mountain Energy is engaged in the exploration, development and production of helium, hydrogen and noble gas projects in North America. The Company is primarily looking for elements deemed critical to the renewable energy and high technology industries.
It holds interest in the Holbrook Basin helium project covering an area of 74,421 acres located in Eastern Arizona. The project is in Holbrook Basin, which is dubbed the “Saudi Arabia of helium,” which is a reference to its rich supply potential. The region is known for its high purity, which is easily eight to ten times higher than the industry average.
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An interesting technical pattern and perhaps one which could trigger relatively soon. The stock is ranging and basing and is now forming a triangle pattern. A break and close above the trendline would trigger this breakout pattern. The next major resistance would come in around the $0.50 zone.
futrcash
6 months ago
Royal Helium Successfully Completes Facility Commissioning and Announces the Start-Up of the Steveville Helium Purification Facility
October 12, 2023
Saskatoon, SK, October 12th, 2023 – Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) ("Royal" or the "Company") today announces that the Company has completed commissioning of its Steveville helium purification facility and has commenced the start-up of the facility located in southeast Alberta near the town of Brooks.
“This is a pivotal moment for Royal Helium and all its stakeholders,” said Andrew Davidson, President & CEO of Royal. “Only a few short years after we first began drilling our helium wells and 12 months of design, fabrication, and construction of the Steveville plant, we are now pleased to announce start up following the successful completion of the assembly and commissioning phases. Following a successful start-up, Royal will begin ramping up towards full commercial production, making Royal the first publicly listed helium producer operating in Canada."
The Steveville plant is engineered to process 15,000 mcf/day of raw gas fed by two of the 100% owned helium wells at Steveville with an output capacity of approximately 22,000 mcf of 99.999% helium per year. The production capacity of this facility fully delivers on the 3-year purchase commitments from Royal’s two offtake partner agreements in the major North American aerospace and space launch industries at an average price of USD $538 per mcf (thousand cubic feet) helium (CAD $730/mcf). Of economic significance, the facility at Steveville has an ultra-low operating cost due to it being self-powered by fuel gas co-produced from the two helium wells.
About the Steveville Helium Purification Plant
Royal’s 100% owned state-of-the-art purification facility was purpose built to recover 99.999% helium while setting the highest standards for environmental efficiencies and producing an exceptionally low carbon footprint. Substantially all of the gas purified at the facility is inert and can be captured in purified form at the facility, providing additional potential cash flow streams. Until the biproduct gases are captured and sold, they are vented with virtually zero impact to the environment, given the gas’s completely inert nature. The limited ancillary methane gas produced is recycled back into the facility to power its own operations, with the ability to generate excess power which will be distributed back into the electrical grid, providing additional economics to Royal.
The Steveville plant will materially benefit from carbon credits, generated under the Technology Innovation and Emissions Reduction System (“TIER system”) in Alberta. As these carbon credits are monetized it will have the ability to provide Royal shareholders with a material additional cash flow stream.
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.
For more information, please contact the Company.
Spiro Kletas
VP Investor Relations
1 (306) 500-9397
spiro@royalheliumltd.com
Dean Nawata
Business Development
1(306) 500-9420
dean@royalheliumltd.com
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