Royal Helium Marks Start of Commercial Sales with First Trailer Loading Underway
SASKATOON, SK, Nov. 7, 2023 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) ("Royal Helium" or the "Company") is pleased to announce that the Company has commenced loading purified helium into specialized ISO trailers at its Steveville helium purification facility, marking the start of commercial sales from its facility located in Southeastern Alberta.
"As we prepare our flagship delivery, the Company is proud to be entering into this new and exciting phase of our business, making Royal Helium one of the leading, active suppliers of purified helium directly to end-users" said President and CEO Andrew Davidson.
Volumes from this first facility commences fulfillment of the Company's offtake agreement with its major North American aerospace customer, which has contracted to purchase Steveville facility volumes over the next several years. These existing offtake agreements, established over the past two years, deliver volumes at an average price that exceeds USD $500 per mcf. Given the increasing demand for purified helium combined with the current geopolitical backdrop further constraining supply of key resources, Royal Helium anticipates a robust pricing environment for the foreseeable future.
Royal Helium's high margin production activities and corresponding operating cash flow will be supportive of the Company's plans to add several additional purification facilities in the upcoming calendar year. The Company is in discussions with numerous parties interested in establishing offtake agreements relating to its forthcoming facilities. Royal Helium looks forward to establishing additional, strong and long-term relationships with key industry players who require helium in support of critical industries, including healthcare, chip manufacturing, aerospace, and others.
Royal Helium's 100% owned state-of-the-art purification facility was purpose built to recover 99.999% helium while setting the highest standards for environmental efficiencies and to produce an exceptionally low carbon footprint. Substantially all of the gas purified at the facility is inert and can be captured in purified form at the facility, providing additional potential cash flow streams. Until the byproduct gases are captured and sold, they are vented with virtually zero impact to the environment, given the gas's completely inert nature. The limited ancillary methane gas produced is recycled back into the facility to power its own operations, with the ability to generate excess power which may be distributed back into the electrical grid, providing additional economics to Royal Helium.
The Steveville plant will benefit from carbon credits generated under the Technology Innovation and Emissions Reduction System ("TIER system") in Alberta. As these carbon credits are monetized, they have the ability to provide Royal Helium with a material additional cash flow stream.
Royal Helium 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 Helium's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore the plant has a low GHG footprint when compared to plants in 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.
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 news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. 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.sedar.com for further information.
SOURCE Royal Helium Ltd.
Please contact the Company: Spiro Kletas VP Investor Relations, 1 (306) 500-9397, [email protected]; Dean Nawata, Business Development, 1(306) 500-9420, [email protected]
Share this article