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Friday, December 2, 2022

Helium Evolution

​Overview

Helium is an essential resource required in numerous industrial applications, including modern MRI systems, , fiber-optics production, semiconductors, space exploration and arc welding. The more high-tech the world becomes, the more helium its going to need, and for most uses, there is no available substitute. A recent study suggests that global demand for helium may outpace production until 2025, potentially even lasting until 2030, driven by expanding Internet access, increased demand for semiconductors, and even advances in quantum computing.

North America has historically represented the largest source of helium consumption, with the United States consuming 74 million cubic meters of helium, and Qatar in second place at almost half the consumption at 45 million cubic meters.

Western Canada is in a perfect position to capitalize on the surge in demand caused by increased high-tech usage along with the US Bureau of Land Management (“BLM”) announcing it will dispose of all remaining helium assets and helium in storage which previously accounted for 25% of global helium supply. Saskatchewan is home to one of the most highly concentrated helium resources in the world. A ‘land rush’ has taken place in Saskatchewan to secure land rights to previously untapped helium resources which arise due to decaying uranium and thorium deposits. To further accelerate this rush, the Government of Saskatchewan has created the Helium Action Plan, setting the lofty goal of going from ~20 helium wells currently to 150+ helium production wells and producing 10 percent of the global helium market.

Helium Evolution Incorporated (HEVI) is a Canadian-based helium exploration and development company that is focused on helium extraction, which offers a ‘green’ alternative to harvesting helium as a byproduct of natural gas. HEVI owns land rights to over 5 million acres, and an incremental 1 million acres of permits under application, representing the largest land package in Canada controlled by a public entity.

HEVI’s land package is located in a helium-rich area and in close proximity to the U.S. market, facilitating easier trade. Additionally, the Company plans to acquire more potentially prospective land rights in the Saskatchewan fairway.

HEVI selected southern Saskatchewan for a variety of reasons. First, the decaying uranium in the area’s basement rocks has produced significant helium reserves throughout southern Saskatchewan. Second, Helium Evolution’s target geological formation, known as The Deadwood, contains up to 2.0 percent proven helium content alongside 95+ percent nitrogen content. Existing geophysical data is readily available and will help Helium Evolution select the best drill targets.

Why does this matter? The presence of nitrogen as the carrier gas allows Helium Evolution to vent the gas in an environmentally-friendly manner while also providing cost advantages during the helium extraction and liquefaction processes. Additionally, drilling for helium is similar to extracting conventional natural gas, meaning there’s no need for specialized equipment and management’s existing oil and gas development expertise can be leveraged. Low-cost vertical drilling is all that’s required for HEVI to begin extraction.

HEVI is led by an impressive management team with a combined 150 years of resource development experience, including engineering, geological and executive management across the corporate landscape. CEO Greg Robb boasts 35 years of direct experience in Western Canada where he focused on the acquisition and development of natural resources in the region. Patrick Mills, COO, brings over three decades of executive, managerial, and engineering experience in Western Canada as well. Meanwhile, VP John Kanderka has 40 years of directly applicable experience in the energy and mineral sectors, serving as an officer in both public and private entities. The management team is complemented by a very strong board, which includes the former premier of Saskatchewan, Brad Wall and senior energy executives Mike Graham, Philip Hughes and James Baker

​Company Highlights

  • HEVI is capitalizing on the untapped potential of Saskatchewan’s helium resource
  • The Company has land rights to over 5 million acres with a pending application for 1 million additional acres, representing the largest land package held by a public company in North America.
  • HEVI’s Saskatchewan holdings put the Company in a natural resource-friendly province with a skilled local workforce and a supportive government
  • HEVI is focused on helium extraction in wells that have nitrogen as the carrier gas, creating an environmentally friendly operation that will also create a cost advantage during the extraction and liquefaction processes
  • HEVI’s land package contains significant helium targets created by radioactive decay; existing exploration data will help the Company select drill targets offering higher probabilities of success
  • The Company is led by an impressive management team with a combined 150 years of experience in resource development and executive leadership

​Key Projects

The Deadwood

Helium Evolution is targeting a geological formation known as The Deadwood Sand Reservoir for its initial exploration and development. Multiple drilling targets for near-term development have already been identified. Seismic data for these targets is undergoing analysis before drilling begins.

Project Highlights:

  • Existing Geophysical Data: Helium Evolution has acquired a significant amount of data, including well logs, aeromagnetic data, and seismic data to assess the best drill targets
  • Simple Drilling Process: Drilling for helium is similar to conventional natural gas drilling, only requiring a vertical drill and does not require specialized equipment or fracture stimulation
  • Nitrogen Carrier Gas: Nitrogen is the primary carrier gas, allowing for environmentally-friendly venting and a cost advantage during extraction and liquification
  • Nearby Wells: A nearby helium development, the Mankota Pool, has demonstrated a nitrogen-rich reserve boasting helium contents of 1.08 percent and has a nearby helium production facility
  • Near- Term Drilling: Initial drilling is slated to begin Q2-Q3 2022 on 4 test wells chosen based on seismic data. Helium Evolution’s goal is to complete the drilling program and begin production of raw helium Q1-Q2 2023.

Management Team

Greg Robb – Chief Executive Officer, Director

Greg Robb brings over 35 years of experience across all facets of Western Canadian energy resource activity, including exploration and development, acquisitions & dispositions, and reserve valuations. He previously held executive positions in several E&P companies, and founded Salvo Energy Corp. in 2006. He has extensive experience in heavy oil, shallow gas, coal bed methane, deep basin tight gas, and conventional oil and gas plays, evaluating over $500MM of acquired assets.

Patrick Mills – Chief Operating Officer

Patrick Mills has over 36 years of executive, managerial, and engineering & operational experience in the Western Canadian Sedimentary Basin. He previously founded Mustang Resources and Pegasus Oil & Gas where he held executive and board positions, as well as technical and managerial positions with Texaco, Imperial Oil Ltd, and Startech Energy.

Ryan Tomlinson – Chief Financial Officer

Ryan Tomlinson holds the Chartered Professional Accountant (CPA) and Certified Management Accountant (CMA) designations. He has extensive financial accounting experience with domestic and international private and public oil and gas companies and has raised equity in both private and public markets. He has held key roles with increasing responsibility serving as Controller and CFO.

John Kanderka – VP, Corporate Development

John Kanderka has over 40 years of experience in the energy and mineral sectors as both an officer and director of private and public entities. He previously founded multiple companies leading to a wide array of experience in corporate finance, mergers and acquisitions, buyouts, and corporate restructuring. He is currently a Director of Orestone Mining Corp. and Chairman & Founder of Visionary Gold Corp.

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