Helium Evolution Announces Filing of Third Quarter 2022 Financial and Operating Results

Source: www.gulfoilandgas.com 11/22/2022, Location: North America

Helium Evolution Incorporated, a Canadian-based helium exploration and production company focused on developing assets in southern Saskatchewan, today announced the filing of our unaudited financial results for the three and nine- month periods ended September 30, 2022, along with a corporate update on activities that have occurred subsequent to the end of the period.

Three & Nine Months Ended September 30, 2022 Highlights
During the third quarter of 2022, HEVI continued to execute on its focused strategy of developing its 5.5 million acres of helium rights in southern Saskatchewan, to ultimately produce and sell helium, generate cash flow and drive positive returns for shareholders. HEVI drilled two 100% operated wells in June and July at McCord, resulting in capital expenditures of $3.8 million for the third quarter, primarily allocated to drilling followed by requisite downhole abandonment activities since initial results did not return sufficient quantities of helium to warrant production testing. With strong helium indications in the area, as well as the expanded and enhanced farm-out agreement (the “Amended Farmout Agreement”) with North American Helium (“NAH”) announced October 21, 2022, HEVI maintains a very positive near and longer-term outlook for its asset base. The Company retained ongoing financial flexibility with positive working capital of $9.3 million at the end of the quarter plus $1.5 million of tubing and casing in inventory, of which $0.5 million was sold subsequent to quarter end.

The Company was also pleased to bolster the strength of its internal management team during the quarter with the appointment of Ms. Kristi Kunec as Chief Financial Officer, effective September 12th, 2022. Ms. Kunec brings over 15 years of financial experience with strong acumen in corporate finance, organizational planning and financial reporting for high-growth resource companies.

On October 21, 2022, through the Amended Farmout Agreement, HEVI and NAH expanded and accelerated their previous farmout agreement, providing the Company with numerous significant benefits, which include:
• An acceleration of drilling as NAH will drill the first two test wells on HEVI lands in Q4/22 and a third test well in the first half 2023;
• Preservation of capital as costs to drill the test wells will be funded 100% by NAH while HEVI retains a 20% working interest;
• Based on success with the first three test wells, NAH commits to expeditiously drill development wells on the earned farmout blocks, subject to surface access and regulatory approvals;
• NAH will select a fourth and fifth test well location by June 30, 2023, with both wells to be spud by the first quarter of 2024;
• New seismic option and seismic review option agreements will give NAH the option to increase the number of exploration wells to be drilled by approximately 60%, from five to up to eight;
• At no cost, HEVI has received NAH’s proprietary seismic recently used to drill three successful NAH wells; and
• HEVI retains a 20% working interest in any successful wells with no up-front capital costs and the ability to participate in future development wells at the same 20% interest level.

On November 9th, HEVI confirmed that NAH had spud its first test well (the “First Test Well”) on farmout lands within Block 1 at its Mankota, Saskatchewan area. On November 21st, HEVI announced that NAH had informed the Company that the open hole portion of the First Test Well would be abandoned, but that NAH was electing to suspend the cased hole portion of the well to afford optionality and the ability to re-enter it at a later date, potentially to drill a sidetrack to another target. NAH is expected to spud its second test well (the “Second Test Well”) in mid-December. In tandem with ongoing developments under the NAH Amended Farmout Agreement, HEVI is also continuing to advance the selection of its own 100% operated future drilling targets, and are undertaking numerous initiatives designed to support ongoing technical work, including geological and geophysical modelling, shooting of proprietary 2D seismic, seismic reprocessing and interpretation and well log integration. The Company also recently acquired approximately 360km of 2D seismic data, with plans to purchase additional 2D seismic over the next six to nine months.

Relative to other helium peers, HEVI remains very well positioned and pleased with how far it has advanced on the journey to realize production and cash flow. The Company looks forward to benefitting from the continued exploration and development of its asset base by NAH, which affords HEVI extensive data and expertise while preserving capital and enabling the Company to pursue drilling and development of its 100% owned targets in the future.

Stay Connected to Helium Evolution
Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to visit the Company’s website, which includes an updated corporate presentation, and are invited to follow the Company on LinkedIn and Twitter for ongoing corporate updates and helium industry information. Helium Evolution also provides an extensive, commissioned ‘deep-dive’ research report prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers. In addition to recent media articles, HEVI maintains a profile on the Investing News Network platform, where further information, editorial pieces and industry reviews are available.

Canada >>  2/3/2023 - Northland Power Inc. is pleased to announce its 2023 financial outlook ahead of the previously announced annual Investor Day, which will be held at 10...
Greece >>  2/3/2023 - Capital Product Partners L.P. , an international owner of ocean-going vessels, today released its financial results for the fourth quarter ended Decem...

Norway >>  2/3/2023 - In the fourth quarter 2022, Scatec’s proportionate revenues rose by 71 percent to NOK 1,995 million (1,169), with a 15 percent increase in EBITDA to N...
United States >>  2/3/2023 - Fourth Quarter 2022 Highlights
- Net Income: $353 million, $427 million excluding identified items(a)
- Diluted earnings per share: $1.07 pe...

United States >>  2/3/2023 - The Gorman-Rupp Company reports financial results for the fourth quarter and year ended December 31, 2022.

Fourth Quarter 2022 Highlights
United States >>  2/3/2023 - Brookfield Business Partners announced financial results for the year ended December 31, 2022.

“Our operations were resilient and we achie...

Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.