Royal Helium (TSXV: RHC) has completed a major milestone with the completion of commissioning of the Steveville helium purification facility.
Start-up is now said to be underway for the plant, which has been designed to process 15,000 mcf per day of raw gas. The facility will be fed gas from two helium wells wholly owned by Royal in the region, which currently have an output capacity of 22,000 mcf of helium a year. Notably, the facility is self-powered by fuel gas co-produced at the helium wells, resulting in an ultra low operating cost.
“Only a few short years after we first began drilling our helium wells and 12 months of design, fabrication, and construction of the Steveville plant, we are now pleased to announce start up following the successful completion of the assembly and commissioning phases. Following a successful start-up, Royal will begin ramping up towards full commercial production, making Royal the first publicly listed helium producer operating in Canada,” commented CEO Andrew Davidson.
READ: Royal Helium Secures Second Offtake Deal, To Raise $7.0 Million Via Convertible Debt
With production ramping, the facility is expected to fully deliver on three year purchase commitments entered into by the company under two off-take agreements. Those contracts will see the sale of helium at an average price of US$538 per mcf of helium.
Royal Helium last traded at $0.315 on the TSX Venture.
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