Helium Evolution Provides Update on First Two Exploration Wells Drilled at McCord
August 02 2022 - 6:00AM
Helium Evolution Incorporated (TSXV:HEVI)
("
HEVI" or the "
Company"), a
Canadian-based helium exploration and production company focused on
finding, developing and commercializing assets in southern
Saskatchewan, today provides an update on the first two exploration
wells drilled at the Company’s 100% owned and operated McCord
property, HEI-1 (HEI 06-12-006-05W3M) and HEI-2 (HEI
06-2-006-06W3M).
Following casing and evaluation of both wells,
initial results did not return sufficient quantities of helium to
warrant production testing. As such, field operations on both wells
have been halted in order to conduct further analysis on the
results and the Company’s planned operations program. HEVI has
released the contracted rig and is currently reviewing all
information gathered during the drilling operations to reassess its
exploration model before undertaking additional drilling.
“Although these initial results are
disappointing, they do not change our positive long-term outlook
for our asset base given the strong indications of helium in the
area based on adjacent operators’ success,” said Greg Robb,
President & CEO of HEVI. “We are analyzing all of the data we
have collected to assist us in planning our operations program as
we move forward, and will pursue the acquisition of additional
seismic to support our efforts. The HEVI team maintains confidence
in the prospectivity of our large land package and will regroup to
determine the optimal path forward to generate maximum value for
our shareholders.”
With approximately $10 million in cash on the
balance sheet, HEVI has sufficient liquidity to pause on its
planned six-well drilling program. The Company intends to direct a
portion of available funds to a seismic program that can facilitate
further evaluation and drilling target identification. In addition
to the Company’s operations in the Mankota/McCord area, HEVI also
has a five-well commitment from North American Helium Inc.
("NAH") following the execution of a farmout
agreement that was finalized on June 28th, 2022. It is anticipated
that the NAH drilling program will provide HEVI with valuable data
to help expand understanding of the play. Should NAH elect to drill
development wells, HEVI expects to allocate a portion of funds
towards those projects and would retain a 20% working interest in
both the lands earned and each successful well drilled by NAH.
About Helium Evolution
Incorporated
Helium Evolution is a Canadian-based helium
exploration and production company holding the largest helium land
rights position in North America among publicly-traded companies,
focused on developing assets in southern Saskatchewan. The Company
has over five million acres of land under permit near proven
discoveries of economic helium concentrations which will support
scaling the exploration and development efforts across its land
base. HEVI’s management and board are executing a differentiated
strategy to become a leading supplier of sustainably-produced
helium for the growing global helium market, offering a compelling
opportunity for investors.
For further information, please
contact:
Greg Robb, President & CEORyan Tomlinson, CFO |
Phone: 1-587-330-2459 Email: info@heliumevolution.caWeb:
https://www.heliumevolution.ca/ |
|
Cindy Gray, Investor Relations |
info@5qir.com | 403-705-5076 |
Statement Regarding Forward-Looking
Information
This news release contains statements that
constitute "forward-looking statements." Such forward looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements,
or developments in the industry to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document
include statements regarding the Company's expectations regarding
the Company's exploration plans, arrangements with NAH pursuant to
the farmout agreement and other statements that are not historical
facts. By their nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
our actual results, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors and risks include, among
others: the Company may choose to defer, accelerate or abandon its
exploration plans, including the proposed seismic purchase; the
Company and NAH may determine to amend the farmout agreement; new
laws or regulations and/or unforeseen events could adversely affect
the Company’s business and results of operations; stock markets
have experienced volatility that often has been unrelated to the
performance of companies and such volatility may adversely affect
the price of the Company's securities regardless of its operating
performance risks generally associated with the exploration for and
production of resources; the uncertainty of estimates and
projections relating to expenses; constraint in the availability of
services; commodity price and exchange rate fluctuations; the
current COVID-19 pandemic; adverse weather or break-up conditions;
and uncertainties resulting from potential delays or changes in
plans with respect to exploration or development projects or
capital expenditures.
When relying on forward-looking statements and
information to make decisions, investors and others should
carefully consider the foregoing factors and risks and other
uncertainties and potential events. The Company has assumed that
the material factors referred to in the previous paragraphs will
not cause such forward-looking statements and information to differ
materially from actual results or events. However, the list of
these factors is not exhaustive and is subject to change and there
can be no assurance that such assumptions will reflect the actual
outcome of such items or factors. The reader is cautioned not to
place undue reliance on any forward-looking information. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated. Forward-looking
statements contained in this press release are expressly qualified
by this cautionary statement. The forward-looking statements
contained in this press release are made as of the date of this
press release. The Company does not intend, and expressly disclaims
any intention or obligation to, update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
Neither the 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 release.
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