VANCOUVER, BC, Nov. 11,
2022 /CNW/ - Total Helium Ltd. (TSXV: TOH)
(OTCQB: TTLHF) ("Total Helium" or the "Company") announces the
significant advancement of a joint venture with its industrial gas
partner for establishing a salt cavern helium storage facility near
existing North American helium infrastructure.
Historically, the world's only existing viable long-term storage
facility for helium has been the Federal Helium Reserve in
Amarillo, Texas. The facility
continues to be managed by the US government with uncertainty over
its future continuing.
Total Helium has been working on establishing helium storage
solutions for solving the industry need for reliable long-term
helium supply security. Helium's remarkable physical and chemical
characteristics make it irreplaceable for high-tech applications
such as computer chip manufacturing and rocket pressurization.
These same remarkable qualities also make it a unique challenge to
reliably store helium long term.
Total Helium is planning the construction of a salt storage
cavern which will bring long term helium storage and supply
security to the industry.
Helium Storage Salt
Cavern
Total Helium has advanced geological and engineering studies and
has secured the water rights for the construction of its storage
facility in western Kansas. The
storage facility is being built in collaboration with Total
Helium's major industrial gas partner. Total Helium is now in the
permitting process required for creation of the facility.
The first facility, upon being operational, will have the
capacity to hold 400 MMcf of helium and it will be jointly owned by
Total Helium and its industrial gas partner in a 50-50% ownership
split.
Total Helium's storage facility is strategically positioned near
one of the world's largest helium liquefaction plants and a natural
gas and helium processing plant. Total Helium is currently
receiving monthly payments for advancing the storage project and is
working in collaboration with several industrial gas companies to
fund the project.
Upon completion of the construction project, Total Helium's
storage facility is expected to serve as a regional, national, and
international helium storage hub for industrial gas companies.
Furthermore, if demand warrants it, Total Helium has the
flexibility and the necessary water rights to create another cavern
for the storage of hydrogen. At this time there are no plans to do
so, but it could become attractive in the future.
Water Rights Secured
Total Helium has secured the water rights necessary for the
construction of the salt cavern storage facility. Water rights are
crucial as the creation of the storage facility uses significant
volumes of water to essentially hollow out the salt that forms the
storage cavern. Total Helium worked closely with a local water
rights holder to reach an agreement that is equitable to both sides
and is mindful of the land and the precious resource of water.
Need For a New Helium Storage
Facility
Unlike oil and gas, helium is generally not subject to seasonal
fluctuations in demand. This means that maintaining consistent
production of helium, safely and effectively storing the helium,
and being able to bring the helium to market in a timely manner
throughout the year are all critical. The ability to provide a
helium storage solution is important for two primary reasons.
First, the major users of helium, such as computer chip
manufacturers, medical device companies, the aerospace industry,
etc., always require an on-demand source of helium. Second, due to
the importance of the aforementioned industries, maintaining a
stable source of helium stored underground for on-demand use is a
matter of national security.
From a business perspective, unlike wells, which are a depleting
asset, an underground helium storage facility provides a steady,
non-depleting stream of revenue for Total Helium.
"Today, I am pleased to announce that we are moving forward
in our vision to be a complete helium producer and storage
company." - Robert B. Price,
Director and CEO of Total Helium
Total Helium is a helium exploration, production and
storage company focused on bringing a reliable domestic supply of
helium to the US market. The company's footprint includes the
largest continuous conventional natural gas and helium field in
North America, the Hugoton Gas
Field. In addition to its helium production activities, Total
Helium is establishing an underground helium storage facility with
its industrial gas partner to ensure that the United States has a stable supply of
helium at all times into the foreseeable future.
On behalf of the Board,
Robert B. Price, Director and
CEO
Total Helium Ltd. - www.totalhelium.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Statements included in this announcement, including
statements concerning our plans, intentions and expectations, which
are not historical in nature are intended to be, and are hereby
identified as, "forward-looking statements". Forward-looking
statements may be identified by words including "anticipates",
"believes", "intends", "estimates", "expects" and similar
expressions. The Company cautions readers that forward-looking
statements, including without limitation those relating to the
Company's future operations and business prospects, are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those indicated in the forward-looking
statements.
SOURCE Total Helium Ltd