PetroSun Announces Agreement to Process Future Helium Production
PetroSun, Inc. (OTC PINK:PSUD) announced a framework agreement to market future helium production from its Holbrook Basin leaseholds to Desert Mountain Energy. This arrangement allows PetroSun to deliver helium to Desert Mountain's McCauley processing facility once commercial reserves are confirmed. Desert Mountain Energy will have approval rights on gas sales based on composition and processing capacity. Although production is not yet underway, the agreement offers a flexible route to market helium until PetroSun can develop its processing capabilities. The company holds significant leasing acreage estimated at 280,000 gross acres in Holbrook Basin.
- Agreed framework with Desert Mountain Energy to market helium production.
- Potential access to Desert Mountain's McCauley processing facility.
- Flexible path to market helium until own processing plant is developed.
- No current production from any well.
- Manuel Seep wellbore awaits perforation and testing to determine commerciality.
PHOENIX, AZ / ACCESSWIRE / February 22, 2023 / PetroSun, Inc. (OTC PINK:PSUD; the "Company") announced today that the Company has entered into an agreed framework under which future production from certain wells which may be drilled on PetroSun leaseholds in the Holbrook Basin can be marketed to a third-party processing plant.
Under the agreement, PetroSun holds an option to deliver production from commercial helium discoveries to Desert Mountain Energy's McCauley processing facility. Desert Mountain will have a right to approve any sales of gas based on gas composition, available processing capacity at the facility and other considerations. Production would then be sold at terms and pricing to be agreed. Desert Mountain's McCauley facility is located south of Winslow, Arizona, where Desert Mountain has drilled and completed several wells, and nearby unexplored leases held by PetroSun. Following the commencement of deliveries to the facility, either party may terminate the arrangement at any time.
PetroSun's Chief Financial Officer, Chris Hewitt, commented, "This agreement provides PetroSun with an interim path to bring production of helium to market following a discovery of commercial reserves. Upon the agreement of the parties to pricing and terms, PetroSun would transport gas volumes under pressure via truck to the McCauley facility."
Hewitt continued, "Although we are not ready to commence production at this time from any well, and the Company's Manuel Seep wellbore awaits perforation and testing to determine commerciality, the agreement provides PetroSun with a flexible path to market new helium production until the Company is ready to construct its own processing plant. We appreciate this agreement with Desert Mountain Energy Corp. and look forward to building our relationship with the Desert Mountain team in areas of overlapping interest."
ABOUT PETROSUN, INC.
PetroSun, Inc. owns significant leasehold acreage that is prospective in helium exploration and production in the Holbrook Basin of Arizona and prospective for natural gas and helium in the Paradox Basin of Utah. The Company holds mineral leases on approximately 280,000 gross acres in the Holbrook Basin and over 26,000 gross acres in the Paradox Basin. The Company trades on the OTC Pink Sheets under the symbol "PSUD".
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "ongoing", "plan", "potential", "predict", "project", "should", "will", "would", or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are disclosed on the OTCMarket.com website.
Contact:
PetroSun, Inc.
2999 North 44th Street, Suite 620
Phoenix, Arizona 85018
480-425-4290
Website: www.petrosun.us
SOURCE: PetroSun, Inc.
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