CALGARY, Alta., Aug. 02, 2022 (GLOBE NEWSWIRE) — Helium Evolution Incorporated (TSXV: HEVI) (“HEVI“or the”Company“), a Canadian-based helium exploration and production company focused on finding, developing and commercializing assets in southern Saskatchewan, today provided an update on the first two exploration wells drilled on the 100% owned and operated McCord Property, HEI-1 (HEI 06-12-006-05W3M) and HEI-2 (HEI 06-2-006-06W3M).
Following the casing and evaluation of both wells, initial results did not provide sufficient quantities of helium to warrant production testing. As such, field operations on both wells have been halted in order to conduct further analysis of the results and the Company’s planned mining program. HEVI has released the rig under contract and is currently reviewing all information gathered during drilling operations to reassess its exploration model before undertaking additional drilling.
“While these early results are disappointing, they do not change our positive long-term outlook for our asset base given the strong helium indications in the region based on the success of adjacent operators,” said Greg Robb, President and CEO of HEVI. “We are analyzing all the data we have collected to help us plan our mining program as we move forward, and we will continue to acquire additional seismic data to support our efforts. The HEVI team maintains confidence in the prospectivity of our extensive land package and will come together to determine the optimal path forward to generate maximum value for our shareholders.
With approximately $10 million in cash on the balance sheet, HEVI has enough liquidity to halt its planned six-well drilling program. The Company intends to allocate a portion of the available funds to a seismic program which may facilitate further evaluation and identification of drill targets. In addition to the Company’s operations in the Mankota/McCord area, HEVI also has a five-well commitment from North American Helium Inc. (“NAH“) following the signing of a lease agreement finalized on June 28e, 2022. The NAH drill program is expected to provide HEVI with valuable data to help expand understanding of the area. If NAH chooses to drill development wells, HEVI plans to allocate a portion of the funds to these projects and will retain a 20% working interest in the land acquired and in each well drilled successfully by NAH.
About Helium Evolution Incorporated
Helium Evolution is a Canadian-based helium exploration and production company with the largest helium land rights position in North America among publicly traded companies, focused on developing assets in southern Saskatchewan. The Company has more than five million acres of land under license near proven discoveries of economic helium concentrations that will support increased exploration and development efforts in its territory. HEVI’s management and board are executing a differentiated strategy to become a leading supplier of sustainably produced helium to the growing global helium market, providing an attractive opportunity for investors.
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Statement regarding forward-looking information
This press release contains statements that constitute “forward-looking statements”. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from any anticipated results, performance or achievements expressed or implied. -understood by these forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”. , “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “could”, “might” or “should” occur.
Forward-looking statements contained in this document include statements regarding the Company’s expectations regarding the Company’s exploration plans, agreements with NAH pursuant to the Farm-Out Agreement and other statements that are not historical facts. . By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or other future events, to differ materially from the results, performance or future achievements expressed or implied by such forward-looking statements. These factors and risks include, among others: the Company may choose to postpone, accelerate or abandon its exploration plans, including the proposed seismic purchase; the Company and NAH may decide to modify the farm-out contract; new laws or regulations and/or unforeseen events could adversely affect the Company’s business and results of operations; stock markets have experienced volatility that has often been unrelated to business performance and such volatility may adversely affect the price of the Company’s securities, regardless of the operational performance risks generally associated with the resource exploration and production; the uncertainty of expense estimates and projections; constraint in the availability of services; fluctuations in commodity prices and currency exchange rates; the current COVID-19 pandemic; adverse weather or ice break-up conditions; and uncertainties resulting from potential delays or changes in plans for exploration or development projects or capital expenditures.
When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks as well as other uncertainties and potential events. The Company has assumed that the important factors referred to in the preceding paragraphs will not cause such forward-looking statements and information to be materially different from actual results or events. However, the list of such factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. Readers are cautioned not to place undue reliance on forward-looking information. Such information, although considered reasonable by management when prepared, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not intend, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. ‘required.
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