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If they can establish some new economical reserves, it will be a game changer
Developments Enter Into a $25 Million Economic Partnership and LOI for Resource Development and New Facility Construction in Saskatchewan
CNW Group
Tue, Apr 16, 2024, 9:46 AM EDT
SASKATOON, SK, April 16, 2024 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") and Sparrow Hawk Developments Ltd. ("Sparrow Hawk") are pleased to announce that they have entered into an Economic Participation Agreement (the "Agreement") and a letter of intent (the "LOI") for a $25,000,000 joint venture investment by Sparrow Hawk in the development of Royal's Val Marie helium project located in southwestern Saskatchewan.
Under the terms of the Agreement and the LOI, Sparrow Hawk will invest $25,000,000 into the drilling and completion of new wells, as well as the construction of the associated helium purification facility. Pursuant to the LOI terms, Sparrow Hawk will have an approximate 57.5% non-operating working interest in the wells and an approximate 46% non-operating interest in the processing facility.
Mr. Andrew Davidson, Chief Executive Officer of Royal Helium states, "This joint venture represents an exciting next step in Royal's mission to advance the development of its extensive helium resources and bring additional facilities online each year. Of equal importance, this partnership highlights Royal's commitment toward further inclusion of First Nations groups in the resource development activities and the economic growth in the province. This historical partnership with Sparrow Hawk to advance the economic development in the Treaty 4 Territory is an important first step toward these objectives. This important Agreement and LOI ensures First Nations participation at the earliest possible stage for resource development in the province with a shared commitment to economic reconciliation and benefit."
Mr. Alex Fallon, CEO of Sparrow Hawk states, "This partnership and our planned ownership in helium production plants and of the helium resource itself, is not only a form of economic reconciliation, but it also sets the path for a multimillion-dollar investment to develop Saskatchewan's helium sector and export helium to customers around the globe."
"This is a historic partnership that will provide Sparrow Hawk with ownership in a major critical minerals project and honours the spirit of Treaty 4 which was to share the resources in this land," Mr. Fallon continued.
About the Val Marie Project
The Val Marie helium project comprises a 32,000-acre, 21 year lease land package representing approximately 3% of Royal's current helium permit and lease lands across Saskatchewan and Alberta. Val Marie is located immediately north of the Saskatchewan-Montana border sitting atop the Bowdoin Dome, a large geological uplift system that has been a prolific natural gas production area with successful helium production wells recently drilled on the Montana side of the structure. The Company drilled its initial well at Val Marie in August of 2022 with some of Royal's highest helium showings to date from drill bit gas detection equipment from multiple stacked zones – the Duperow, Souris River and Deadwood formations.
Sparrow Hawk – Royal Partnership
The partnership agreement will also see Sparrow Hawk support Royal's economic reconciliation strategy:
Sparrow Hawk and Royal will work together to advance economic reconciliation in Treaty 4 territory and seek to create employment opportunities for Peepeekisis Cree Nation and First Nations people in Saskatchewan's growing helium sector.
Sparrow Hawk and Royal commit to partnering on future helium opportunities in Saskatchewan as and when they materialize.
Sparrow Hawk will engage First Nation's training organizations to provide Indigenous culture training and education opportunities to Royal and its subcontractors.
Sparrow Hawk will play a lead role in engaging other First Nation organizations and partners to work together on economic opportunities that may arise as a result of this partnership.
The Agreement and LOI are subject to final financial arrangements, provincial, regulatory and TSX Venture Exchange approvals.
About Sparrow Hawk Developments
Sparrow Hawk Developments Ltd., is the economic development corporation for Peepeekisis First Nation. Located in the Qu'Appelle Valley in Southern Saskatchewan, Peepeekisis First Nation is 3,148 people strong. Chief Canahhachapew (Making Ready the Bow) signed Treaty 4 on September 21, 1874. Peepeekisis, Cree: ??????, pîhpîkisîs, literal meaning: Sparrow Hawk. More information can be found at: www.sparrowhawkdevelopments.com
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company's expansive footprint includes prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas ("GHG") and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither 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 news release.
This news release includes certain statements that may be deemed to be "forward-looking statements". All statements in this news release, other than statements of historical fact, that address events or developments that management of the Company expects, are forward-looking statements, including, the settlement and execution of the definitive agreements, financing arrangements, provincial and regulatory approvals, and the potential participation of the federal and provincial government in the joint venture and investment. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedarplus.com for further information.
Sparrow Hawk Developments Ltd. logo (CNW Group/Royal Helium Ltd.)
SOURCE Royal Helium Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2024/16/c4780.html
https://finance.yahoo.com/news/royal-helium-sparrow-hawk-developments-134600655.html
Royal Helium unveils plans to have multiple facilities operational in the ‘short-term’
By Molly Burgess, Feb 29, 2024
Royal Helium has unveiled its 2024 development plans, with its CEO saying that the Canadian helium exploration and development company will have multiple facilities operational in the short term.
The company’s plans will be centred on completing and testing existing wells in the Val Marie, Ogema, and Steveville properties and new drilling on a 40-mile project in Alberta, Canada.
Andrew Davidson, CEO of Royal Helium, said that the company is pleased to be focused on determining the site for the next processing facilities.
Steveville
In 2023, Royal Helium is considering a strategy that could extend the operational lifespan of its Steveville project by 33%. The company’s helium purification plant in Steveville has the capacity to produce approximately 22,000 million cubic feet of helium with a purity of 99.9999% per annum.
Originally, the Steveville-1 well was not intended for production following its initial testing. However, a review of geological data since August 2022 has uncovered a previously overlooked section within the well that has the potential for resource production.
With that said, Royal Helium is now planning to conduct tests on this newly identified area to explore its productivity.
Omega
An additional project that Royal Helium is looking to pursue this year is the Omega project, based in Saskatchewan, a Canadian province that has a strong Helium Action Plan in place.
The Ogema project in south-central Saskatchewan is comprised of more than 60,000 acres and is home to the easternmost helium wells drilled in Saskatchewan.
The wells were drilled and partially tested in 2021, but upon receiving legislative permitting changes in 2023, Royal is planning to perforate and test the Ordovician Red River formation within the wellbore with the view of making a production and plant decision.
Saskatchewan’s Red River formation has long been a prolific oil and gas producing formation that boasts helium prospectively with the numerous shows across the province.
The formation has returned the highest concentrations of helium historically, with test results as high as 2.45%.
Val Marie
Another focus for Royal Helium is the Val Marie project in southwest Saskatchewan, a 27,000-acre site that is owned by Royal Helium under a 21-year lease. The site of the most recent well drilled in the portfolio, the Val Marie-1 well is awaiting completion and testing of the zones of interest encountered in the 2022 drill programme.
The Val Marie-1 helium exploration returned the highest background-level helium results that Royal has encountered to date, including the Steveville field. Royal will be completing and flow testing these stacked shows in the Devonian and Cambrian horizons.
Royal Helium’s Val Marie field sits upon the Val Marie Arch on the northern flank of the Bowdoin Dome. One of the earliest projects in the Royal portfolio, Val Marie has long been a high priority field. The Bowdoin Dome is thought to be the dominant structure allowing the migration of helium into southwestern Saskatchewan reservoirs.
Davidson concluded, “This is firmly the goal of all development work that will be completed in 2024. Given the drilling activities completed from 2021-2022, Royal Helium is uniquely positioned to move from one facility to multiple in the short-term.”
https://www.gasworld.com/story/royal-helium-unveils-plans-to-have-multiple-facilities-operational-in-the-short-term/2134897.article/
Still looking for a bottom.
Royal Helium's Leap from Exploration to Production: A 2023 Recap and 2024 Outlook
NEWS
Royal Helium’s Bank Line Expands as the Company Prepares to Deliver Additional Helium Trailers to Market from its Steveville Helium Processing Plant
January 3, 2024
Saskatoon, SK, January 3, 2024 – Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it’s senior lenders, Business Development Bank of Canada (“BDC”) and Canadian Western Bank (“CWB”), have expanded the Company’s debt facilities (see news release of February 6, 2023), increasing them by a total of CAD $3.6 million. Proceeds from the bank facility will fund final costs relating to the Steveville facility and will have the same terms as the prior facility except for the principal repayment start date being moved out to February 2024.
Andrew Davidson, President & CEO of Royal states, “We are appreciative of the ongoing support and confidence by our senior banking partners Canadian Western Bank and the Business Development Bank of Canada. Both CWB and BDC have been strong and steadfast partners to Royal through the Company’s Steveville Facility development process, and we are proud to continue and expand upon that relationship as this first-of-its-kind purification facility is now fulfilling its mission to deliver purified helium to end-markets with deliveries officially having commenced.”
The Steveville plant is designed to process 15,000,000 cubic feet/day of raw gas fed by the two 100% owned helium wells at Steveville, Alberta and produce 22,000 mcf of 99.999% helium per year. The engineered life of the plant is 25 years while both wells are expected to remain on stream for a minimum of 9 years. The plant will also produce enough fuel gas to power the plant and is capable of producing up to 22,000,000 pounds of commercial CO2.
About Royal Helium Ltd.
Royal is an exploration, production, and infrastructure company with a primary focus on the development and production of helium and associated gases. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.
Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.
Andrew Davidson
President and Chief Executive Officer
Royal Helium Ltd.
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