Non-hydrocarbon sourced helium production from new facility contracted on long-term agreement with Air Liquide
CALGARY, Alberta, August 17, 2022--(BUSINESS WIRE)--North American Helium Inc. ("NAH" or the "Company") today announced it has successfully brought its third helium purification facility on production in May with zero operational issues. This facility is located near the Village of Mankota in southwest Saskatchewan.
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NAH Mankota helium production facility in SW Saskatchewan (Photo: Business Wire)
Commenting on this operational milestone, Mr. Marlon McDougall, President and COO stated, "As NAH continues to execute on its operating and development plans, we are now realizing our goal of creating a new global helium production hub in Saskatchewan. We have been diligent in our approach to obtaining a deep understanding of the helium reservoir and trapping systems on our substantial land position and remain firmly on track to double helium production in 2022. North American Helium continues to increase its level of investment in Saskatchewan as we advance exploration and development projects slated for 2023." Mr. McDougall continued:
"This is an exciting year for us, and we plan to add two additional helium production facilities before year-end 2022, while also doubling the capacity of one of our existing production plants. Our company remains committed to being a trusted partner for the supply of reliable, sustainably produced helium in North America."
NON-HYDROCARBON SOURCED HELIUM CONTRACTED ON LONG-TERM AGREEMENT WITH AIR LIQUIDE
Air Liquide is part of the growing Saskatchewan helium story. This is the second successful NAH project in which the Group is a major off-taker, the first being the Battle Creek plant, Canada’s largest helium purification facility. Both projects were completed on time and at projected capacity, providing certainty in the helium supply chain for its customers.
"Air Liquide is continuously looking at ways to increase the availability of helium for its customers and is pleased to be working with NAH again," commented Mr. Rich Brook, President, Air Liquide Helium America.
Commenting on the increased helium production volumes now on long-term contract, Mr. Nicholas Snyder, Chairman and CEO of NAH stated, "We are pleased to once again be working with Air Liquide as the primary off-taker of the helium production from our new Mankota facility. We value having a leader in the industrial gas business as a partner and appreciate the financial stability the long-term off-take agreement brings to support our strategic growth objectives."
GROWING HELIUM PRODUCTION SUPPORTS SASKATCHEWAN’S HELIUM ACTION PLAN
The Honourable Jim Reiter, MLA, Minister of Energy and Resources for Saskatchewan, said, "North American Helium’s announcement is more great news for Saskatchewan and puts us another step closer to achieving our Helium Action Plan goals. The Government of Saskatchewan supports NAH in their efforts to increase production and position Saskatchewan as a leading global producer and supplier of helium."
ABOUT NORTH AMERICAN HELIUM INC.
Founded in 2013, NAH has been the most active helium driller in Saskatchewan with over 40 wells drilled to date. The Company plans to have a continuous capital investment program, which will include acquisition of additional third-party and proprietary seismic data, drilling 15-20 wells per year, and concurrently building additional helium processing facilities as new fields are developed.
Over the past several years, NAH has discovered eight new helium fields and acquired rights to explore for and produce helium on a land base of over 8.5 million contiguous acres, primarily in Saskatchewan, Canada as well as the states of Utah, Arizona and Montana, USA. The Company currently sells helium on long term contracts to several of the largest industrial gas companies. NAH owns and operates multiple helium purification facilities including Canada’s largest facility (Battle Creek), providing reliable, long-term North American supply of this scarce resource to meet growing demand. For more information please visit: https://nahelium.com.
Helium is an inert gas produced by the decay of uranium and thorium that can be trapped in underground reservoirs proximal to the source. Its unique physical properties make it vital for several high technology applications where there is often no substitute. Helium's low boiling point and non-reactive nature make it vital for the pressurization and purging of liquid fuels in rockets for space exploration and satellite infrastructure. Helium is also required for semiconductor manufacturing, MRI machines and certain welding applications due to its high heat capacity. A well-known but minor use is as a lifting gas in balloons and airships.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdictions in which such offer, solicitation or sale would be unlawful. Any offering made will be pursuant to available prospectus exemptions and restricted to persons to whom the securities may be sold in accordance with the laws of such jurisdictions, and by persons permitted to sell the securities in accordance with the laws of such jurisdictions.
Not for dissemination in the United States of America.
Legal Notice Regarding Forward Looking Statements: This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include statements regarding our operating and development plans, our plans for our intended production facilities and production levels, and our plans for the sale of produced helium. Factors that could cause actual results to be materially different include but are not limited to the following: changes to our operating, development, production and sales plans, changes to sales contracts and that the management or board of NAH may use its revenue or other funds for other purposes. Investors are cautioned against placing undue reliance on forward-looking statements. It is not our policy to update forward looking statements.
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FOR INVESTOR AND MEDIA INQUIRIES:
Brad Borggard, VP Business Development & Investor Relations
North American Helium Inc.
Clayton Paradis, Vice President
Incite Capital Markets