US Government to Sell Entire Federal Helium System to the Highest Bidder

US: Helium System managed by the Bureau of Land Management (BLM) is poised for a momentous change as the US federal government prepares to sell it off. The Federal Helium System is a prominent global supplier of Helium and accounts for approximately 15% to 17% of the world's Helium supply.

Helium Stewardship Act of 2013 has mandated the sale of critical assets, comprising federally owned plant equipment, mineral rights, natural gas wells, the Helium pipeline, the Cliffside Gas Plant, and Bush Dome holds both federally and privately owned Helium and is a natural geologic reservoir. The sale is set to commence on July 12, 2023.

US federal government is preparing to sell its entire Federal Helium System, marking a significant shift in the Helium industry. The sale process, which includes the sale of critical assets such as the Cliffside Gas Plant, federally owned plant equipment, mineral rights, and the Helium pipeline, is scheduled to begin on July 12, 2023. In addition, the Bush Dome, a natural geologic reservoir containing both federally- and privately-owned Helium, will also be up for sale. The US General Services Administration is overseeing the sale, with hopes that it will increase the competitiveness of the Helium market.

Alberta, Canada, Helium Inc. is actively pursuing the exploration and development of two high-quality helium projects. The company recently added highly prospective drill targets to its drilling inventory at Worsley, positioning it for further growth in the burgeoning Helium market. A team of senior executives who possess diversified skill sets, including expertise in oil and gas exploration, mining, finance, and capital markets, Helium is strategically positioned to capitalize on the increasing prices of Helium and the privatization initiatives in the United States.

As a pure-play Helium producer, the company has the potential to become a key player in the North American Helium industry.

Strides made by First Helium in its Worsley Property are impressive, with multiple wells drilled successfully. The exceptional well 15-25 boasts a high Helium content of 1.3% and has an estimated contingent resource volume of 323 million cubic feet (mmcf) of Helium. This voluminous discovery is worth over $35 million based on $600 per mcf pricing projections. With an ambitious production timeline set for mid-2024, First Helium is expanding its operations by acquiring rights to new exploration lands covering over 26,000 acres, including coveted territories at East Worsley.

Helium has recently finished its 5,200 acre proprietary 3D seismic program, and the management team is optimistic about the results. The seismic program is expected to generate numerous high-priority drill targets. The new seismic program covers the Company's existing 3D data over its three successful wells at Worsley and extends to the east where deeper drilling opportunities exist. The Company is evaluating these new drilling opportunities that add to its vast drilling inventory at Worsley. The completion of this program is a significant milestone for First Helium as it continues to expand its operations.

Helium has secured a long-term Helium supply agreement with a major global gas enterprise on May 24. The contract specifies that the company will supply 80% of its produced Helium to the buyer, and an additional 20% is negotiable. The agreement operates on a "take or pay" basis and could generate up to US$100 million in revenue for First Helium over the first five years of production, depending on the rate of Helium production escalation at Worsley. This partnership marks a significant milestone for the company as it continues to expand its operations to meet the rising demand for Helium.

The latter half of 2023, the company aims to achieve various crucial milestones. These include wrapping up the engineering design for the Worsley Helium processing facility, choosing construction contractors, and initiating the construction process. The company is also looking forward to commencing new drilling activities in the Worsley region and accelerating exploration and development efforts on its recently procured lands with the help of insights obtained from a recently completed 3D seismic program. Additionally, the company is preparing to drill a high-impact exploration well at its southern Lethbridge property, which stands to have significant implications for the organization and its stakeholders.