Total Helium (OTC:TTLHF) Completes Joint Venture Agreement With Shares Plus Cash And Will Develop Arizona Helium Field

Rhea-AI Summary

Total Helium Ltd. (OTC:TTLHF) has completed the acquisition of a joint venture agreement for a helium field in the Holbrook Basin, Arizona. The agreement gives Total Helium a 20% interest in two currently producing wells and a 50% interest in eight additional existing wells. The purchase price is $12 million, with $8 million paid in cash and just under 11 million common shares provided. Total Helium plans to have 20 operational wells by the end of the first half of 2023.

Positive

• Total Helium has acquired a stake in a helium-rich natural gas field in Arizona, positioning itself as a leading domestic supplier of helium as the U.S. government's reserves deplete.
• The joint venture agreement gives Total Helium a 20% interest in two currently producing wells and a 50% interest in eight additional existing wells.
• The purchase price for the agreement is $12 million, with $8 million paid in cash and just under 11 million common shares provided.
• Total Helium plans to have 20 operational wells by the end of the first half of 2023.
• The helium industry is predicted to reach $5 billion in 2023, representing a compound annual growth rate (CAGR) of over 12%.
• The Pinta South project has a high helium concentration of 5-8% and is ideal for lower-cost drilling and completion.

Negative

• None.

DENVER, CO / ACCESSWIRE / May 5, 2023 / Total Helium Ltd. (OTC:TTLHF), a helium exploration and production company, has completed the acquisition of a joint venture agreement for a helium field. The purchase agreement was made in January 2023 and subsequently amended from all cash to include shares as part of the agreement. The agreement was for a stake in the Pinta South project, a helium-rich natural gas field in the Holbrook Basin, Arizona.

The Joint Venture (JV) agreement was entered into by Brooks Range Corporation, a wholly-owned subsidiary of Total Helium, and its new partners Pinta South Operating Company LLC, Butler Minerals I LLC and Mid America Exploration LLC.

The JV gives Total Helium a 20% interest in two currently producing wells, plus a 50% interest in eight additional existing wells. The purchase price is $12 million, and with the update to the venture, Total Helium paid $8 million in cash, and provided just under 11 million common shares, at the deemed value of $0.50 per share.

Stock Agreement Incentives Project Success For JV Partners

By paying for the deal with stock as well as cash, Total Helium has ensured all the JV partners are incentivized to see the success of the project and to increase shareholder value. The Pinta South project has a very high helium concentration of 5-8%, and the shallow-producing formation is ideal for lower-cost drilling and completion. The company has plans to have 20 operational wells by the end of the first half of 2023. Total Helium satisfied the cash portion of the agreement, as well as the costs for developing the project, with a brokered private placement. In connection with the completion of the offering, it issued 25 million special warrants to raise gross proceeds of $12.5 million.

The agreement comes at a time of sustained demand for helium. The industry was worth $4.4 billion globally in 2022 and is predicted to reach $5 billion in 2023, representing a compound annual growth rate (CAGR) of over 12%. Non-renewable gas is essential for the technology, industrial and medical device sectors, with uses ranging from semiconductors and rockets to fiber optics and magnetic resonance imaging (MRI) devices.

As the U.S. government's reserves of helium get depleted, Total Helium looks to be positioning itself to be a leading domestic supplier of the gas. The Pinta South venture will play an important role in the company's production of a stable helium supply, and all the JV partners have a stake in securing the project's development.

"Total Helium is thrilled to announce this joint venture," said Total Helium CEO, Robert B. Price. "It is my belief that this joint venture will create significant value for our shareholders for many years to come."

Other helium exploration and production companies include Desert Mountain Energy Corp. and Air Products & Chemicals Inc.

Visit its website to learn more about Total Helium.

Featured photo by Scott Graham on Unsplash

Contact:

Dan Lane
dan.lane@totalhelium.com

SOURCE: Total Helium Ltd.

View source version on accesswire.com:
https://www.accesswire.com/753124/Total-Helium-OTCTTLHF-Completes-Joint-Venture-Agreement-With-Shares-Plus-Cash-And-Will-Develop-Arizona-Helium-Field

FAQ

What did Total Helium acquire?

Total Helium acquired a stake in a helium-rich natural gas field in the Holbrook Basin, Arizona.

What percentage of interest does Total Helium have in the currently producing wells?

Total Helium has a 20% interest in two currently producing wells.

What is the purchase price for the joint venture agreement?

The purchase price is $12 million, with $8 million paid in cash and just under 11 million common shares provided.

What are the plans for Total Helium?

Total Helium plans to have 20 operational wells by the end of the first half of 2023.

What is the predicted growth rate for the helium industry?

The helium industry is predicted to have a compound annual growth rate (CAGR) of over 12% and reach $5 billion in 2023.

What is the helium concentration in the Pinta South project?

The Pinta South project has a high helium concentration of 5-8%.