VANCOUVER, BC, July 25, 2022 /CNW/ – Total Helium Ltd. (TSXV: TOH) (OTCQB: TTLHF) (“Total Helium” or the “Company”) announces that the largest natural gas producer in the State of Kansas (or the “Producer”) has exercised its option to purchase 25% of Total Helium’s 3,648 acres near the Boltz Well in the Hugoton Gas Field of Kansas.
The Company previously entered into a farmout agreement with the largest natural gas producer in the State of Kansas to drill the Boltz well on the Producer’s oil, gas, and helium leases. The agreement also established an Area of Mutual Interest (AMI) near the Boltz well. Total Helium successfully acquired leases in the AMI. As part of the agreement, the Producer had the right to purchase 25% of Total Helium’s leases within the AMI. At this time, the Producer has exercised their option.
Positive implications for both parties
The Producer’s decision to purchase 25% of Total Helium’s leases within the AMI is a positive indicator for both companies. For Total Helium, the fact that a major private company is taking an interest in its assets is an indicator that Total Helium is on the right track when it comes to helium exploration and production. For the Producer, the purchase of Total Helium’s leases demonstrates that the agreement is yielding valuable assets as part of an overall beneficial partnership. Lastly, this transaction further demonstrates the operational synergies between the Company and the Producer when it comes to bringing helium to a market in desperate need of additional supply.
“At Total Helium, our ability to work with some of the world’s leading oil and gas and industrial gas companies is something that we pride ourselves on. We place a tremendous amount of value on these strategic relationships and today’s announcement reinforces the fact that our partnerships are mutually beneficial,” said Robert B. Price, CEO of Total Helium.
Total Helium is a helium exploration, production and storage company focused on bringing a reliable domestic supply of helium to the US market. The Company’s footprint includes the largest continuous conventional natural gas and helium field in North America, the Hugoton Gas Field. In addition to its helium production activities, Total Helium is establishing an underground helium storage facility with its industrial gas partner to ensure that the United States has a stable supply of helium at all times into the foreseeable future.
On behalf of the Board,
Robert B. Price, Director and CEO
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.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Total Helium Ltd
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