TOTAL HELIUM ANNOUNCES JOINT VENTURE FOR A HELIUM STORAGE CAVERN WITH WATER RIGHTS SECURED
VANCOUVER, BC, Nov. 11, 2022 /CNW/ - Total Helium Ltd. (TSXV: TOH) (OTCQB: TTLHF) ("Total Helium" or the "Company") announces the significant advancement of a joint venture with its industrial gas partner for establishing a salt cavern helium storage facility near existing North American helium infrastructure.
Historically, the world's only existing viable long-term storage facility for helium has been the Federal Helium Reserve in Amarillo, Texas. The facility continues to be managed by the US government with uncertainty over its future continuing.
Total Helium has been working on establishing helium storage solutions for solving the industry need for reliable long-term helium supply security. Helium's remarkable physical and chemical characteristics make it irreplaceable for high-tech applications such as computer chip manufacturing and rocket pressurization. These same remarkable qualities also make it a unique challenge to reliably store helium long term.
Total Helium is planning the construction of a salt storage cavern which will bring long term helium storage and supply security to the industry.
Total Helium has advanced geological and engineering studies and has secured the water rights for the construction of its storage facility in western Kansas. The storage facility is being built in collaboration with Total Helium's major industrial gas partner. Total Helium is now in the permitting process required for creation of the facility.
The first facility, upon being operational, will have the capacity to hold 400 MMcf of helium and it will be jointly owned by Total Helium and its industrial gas partner in a 50-50% ownership split.
Total Helium's storage facility is strategically positioned near one of the world's largest helium liquefaction plants and a natural gas and helium processing plant. Total Helium is currently receiving monthly payments for advancing the storage project and is working in collaboration with several industrial gas companies to fund the project.
Upon completion of the construction project, Total Helium's storage facility is expected to serve as a regional, national, and international helium storage hub for industrial gas companies. Furthermore, if demand warrants it, Total Helium has the flexibility and the necessary water rights to create another cavern for the storage of hydrogen. At this time there are no plans to do so, but it could become attractive in the future.
Total Helium has secured the water rights necessary for the construction of the salt cavern storage facility. Water rights are crucial as the creation of the storage facility uses significant volumes of water to essentially hollow out the salt that forms the storage cavern. Total Helium worked closely with a local water rights holder to reach an agreement that is equitable to both sides and is mindful of the land and the precious resource of water.
Unlike oil and gas, helium is generally not subject to seasonal fluctuations in demand. This means that maintaining consistent production of helium, safely and effectively storing the helium, and being able to bring the helium to market in a timely manner throughout the year are all critical. The ability to provide a helium storage solution is important for two primary reasons. First, the major users of helium, such as computer chip manufacturers, medical device companies, the aerospace industry, etc., always require an on-demand source of helium. Second, due to the importance of the aforementioned industries, maintaining a stable source of helium stored underground for on-demand use is a matter of national security.
From a business perspective, unlike wells, which are a depleting asset, an underground helium storage facility provides a steady, non-depleting stream of revenue for Total Helium.
"Today, I am pleased to announce that we are moving forward in our vision to be a complete helium producer and storage company." - Robert B. Price, Director and CEO of Total Helium
Total Helium is a helium exploration, production and storage company focused on bringing a reliable domestic supply of helium to the US market. The company's footprint includes the largest continuous conventional natural gas and helium field in North America, the Hugoton Gas Field. In addition to its helium production activities, Total Helium is establishing an underground helium storage facility with its industrial gas partner to ensure that the United States has a stable supply of helium at all times into the foreseeable future.
On behalf of the Board,
Robert B. Price, Director and CEO
Total Helium Ltd. - www.totalhelium.com
Neither the 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 release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Total Helium Ltd
604.609.6110
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