Helium Evolution (TSXV: HEVI) is capitalizing on its large land holdings in southern Saskatchewan for helium rights, revealing this morning that the next five well locations for development have been selected under a farm-out agreement in place with North American Helium.
Five wells are slated to be drilled across the province, with the first well to be spud on or before July 14 in the Mankota region. An additional well in the region is set to be spud by August 31, while a well in the McCord region is also set to be spud by that date.
The two final wells slated to be drilled under the program will be spud in the Fox and Gravelbourg regions, with spudding required to occur before March 31, 2024.
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Helium Evolution has also indicated that North American Helium must select a location in the McCord area by the end of October 2023, or risk fully releasing the 5.6 million acres of land held by Helium Evolution in the province to be developed by a different operator.
The two firms are currently operating under a farm-out arrangement entered into in June 2022, which was later amended in October. Under the working agreement, North American Helium is responsible for 100% of the drilling costs, while Helium Evolution, as a function of owning the helium rights, retains a 20% working interest in the wells. The first well under the agreement was drilled in November.
Helium Evolution last traded at $0.16 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
