CALGARY – Global Helium Corp. (CSE: HECO) (OTC: HECOF), one of North America’s largest helium exploration and development companies, announced it has acquired additional acreage in southern Saskatchewan’s “helium fairway,” advancing the Company’s 100%-owned acreage to over 1.5 million acres, making Global one of the largest helium-focused landholders in North America.
Post-acquisition, Global Helium has over $9.5 million in cash and is Canada’s second largest land holder of helium rights. Global enjoys 100% ownership of the entire 1.5 million acres and pays royalties of less than 5%, yielding greater than a 95% Net Revenue Interest.
“We continue to advance our strategic priorities, which include: (i) expanding our Saskatchewan land holdings in Canada, (ii) using geophysical and other technologies to evaluate our land base to advance our prospects to the drill stage, and (iii) identifying and capturing new opportunities in the United States. We are very pleased with our progress in all of these areas,” stated Wes Siemens, Global’s President, “and we look forward to making several announcements on these fronts in the coming months.”
The Company’s current holdings are in Saskatchewan’s famed “helium fairway,” home to most of Canada’s helium reserves and production where helium has been tested and produced in concentrations of over 2% since the 1960’s. Saskatchewan’s original helium discoveries were made pre-1960 as early explorers for oil and natural gas in Saskatchewan found “inert, non-flammable or non-combustible gas,” which turned out to be primarily nitrogen and helium. Helium and nitrogen are both zero carbon, inert, non-combustible gases.
A helium discovery of 2% or more is considered exceptional in North America and compares very favorably to helium that is typically produced concurrently with hydrocarbons, as is the case in Russia and the Middle East, where helium is typically 0.05% to 0.20% of the production stream. When produced in Saskatchewan, helium can be found in substantially higher concentrations and is typically produced without hydrocarbons, making it a highly concentrated, green, zero carbon product that is easier to process and produce.
The additional acreage increases the Company’s total landholdings across all three core areas in Saskatchewan to 621,261 ha (1,535,168 acres) and Global is still actively adding acreage. The Company’s three Canadian core areas provide significant helium prospectivity over a variety of targets and risk profiles.
Core Area One – Swift Current:
Core Area One encompasses over 835,000 acres and is northeast of Swift Current, home to Saskatchewan’s original helium production facility. Large geological structures have been long known to exist in the area and were proposed for helium exploration in 1960. One such formation on Global’s land, the Lawson Structure, shows four-way closure over 17,000 acres and is a potential structural trap for helium. This feature was drilled in 1944 by Imperial Oil and review of the available data shows the well recovered large percentages of nitrogen and “non-combustible gas” – indicating the potential for helium. The Company recently discovered two additional structures, after analysis and interpretation of previous seismic studies.
Core Area Two – Regina:
Core Area Two encompasses 425,000 acres and is in south-central Saskatchewan, approximately 150 km south of Regina, where there are multiple stratigraphic formations and helium targets. Global’s land flanks that of other helium explorers who have previously announced their intentions to pursue several drilling targets adjacent to the Company’s land. In addition, there are a number of adjacent wells that have tested helium with concentrations ranging from 1.4% to 2.45%. Global’s most recent land acquisition now expands deep into the Williston Basin.
Core Area Three – Montana Border:
Core Area Three encompasses 275,000 acres and is on the Canadian side of the Montana and Saskatchewan border. This attractive acreage sits in the middle of two recent helium discoveries at Eastbrook and Climax, Saskatchewan. High percentage helium tests have been recorded in Montana where significant industry activity is also underway, very close to the Canadian border – and the Company’s significant land holdings.
Wes Siemens added, “We continue to aggressively build Global into one of the largest helium-focused companies in North America. In addition to new land updates, I look forward to updating shareholders on our extensive geoscience program over the coming weeks and months. We are excited to be undertaking such a large geophysical assessment of our three core areas. The combination of multiple technologies will give us the best resolution and information upon which to make technical and operational drilling-focused decisions. This program is expected to produce several drill-ready prospects and we intend to act on them as quickly as possible in 2022.”