DENVER, CO / ACCESSWIRE / July 11, 2023 / Total Helium (OTCQB:TTLHF) is positioning itself to lead North America's transition to independence in helium. This natural, non-renewable gas is essential for a range of industrial, medical and technological products, including fiber optics, MRI machines and semiconductors. Total Helium owns a 50% share of the Pinta South field as part of its joint venture in a major helium field in the Holbrook Basin, Arizona.
Total Helium currently has 15 wells drilled so far in the Pinta South field. The first two operating wells have a helium concentration of 8.11% and 8.22% respectively, significantly higher than the usual concentration of .5%. Five other wells were recently brought into production, while the other eight are in various stages of completion and pipeline connection.
Total Helium has partnered with Pinta South Operating Company (PSOC) to advance the project. PSOC has a team with expert experience in the natural resources industry, including the driller and entrepreneur Brad Butler who has managed multiple helium projects in both Colorado and Arizona. PSOC also owns essential hardware like a drilling rig and cementing and trenching equipment, meaning the project can be handled fully in-house without outsourcing to costly contractors.
Pinta South Project Size
The size of this project, which Total Helium secured for only $12 million, means the company can expand its operations as the drilling advances. It has access to a 27,000-acre field. There is potential for 300 wells at the project, and the drilling and extraction only cost $220,000 per well.
Total Helium has demonstrated that the field's composition makes it highly favorable for helium extraction. Its various formations holding world-class helium reserves, which consist of between 5-8% helium content, are part of easily accessible terrain - making drilling operations cost-effective. The main by-product of the field is nitrogen, which enables efficient and rapid processing, as the nitrogen can be safely vented into the atmosphere with no harm to the environment.
The company is also in partnership with Linde PLC to fund the pipeline extension and to purchase helium from the project's first 10 wells. Linde is a leading chemical company with a market cap of $180 billion as of this writing, involved in both industrial gas as well as chemical manufacturing.
This project is helping Total Helium become established as a pivotal player in the North American helium market. "This acquisition vaults Total Helium to the head of the pack in terms of actual helium production," said Robert Price, CEO of Total Helium.
Disruptions to helium's international supply have already caused shortages of helium in the US, indicating the importance of this project for giving America helium independence. Globally, the market for helium was worth $4.4 billion in 2022. It is predicted to reach $6.4 billion by 2027 growing at a compound annual growth rate (CAGR) of more than 6% from 2022 to 2027.
Companies involved in helium exploration and production include Air Liquide and Air Products & Chemicals Inc.
Learn more about what Total Helium is doing to grow North America's helium sector.
Featured photo by Artyom Korshunov on Unsplash.
Contact:
Dan Lane
dan.lane@totalhelium.com
SOURCE: Total Helium Ltd.
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