Global Helium (HECO.C): a helium play worth watching?

Helium for Air Heads

$17.829M Market Capitalization

Global Helium Corp. (HECO.C) announced today that it has completed a data and seismic acquisition and interpretation program. This program primarily focused on the Company’s helium land base, which spans 1,500,000 acres in Saskatchewan. With the program now completed, Global Helium has identified multiple structures and will be moving forward with land acquisition and permitting.

“The team at Global has now identified multiple drilling locations across a very diversified asset base in Saskatchewan’s three core areas along with two drill-ready assets in Montana that have proven helium from previous drilling campaigns,” said Jesse Griffith, President of Global Helium.

Global Helium’s original seismic acquisition program in Saskatchewan began on January 18, 2022, following an announcement that the Company had commenced 50 kilometers (km) of seismic shooting over its existing permits in Saskatchewan. For context, seismic shooting refers to a method of geophysical prospecting using seismic waves.

These waves are commonly generated through the use of explosive charges, however, seismic air guns, electric vibrations, and thumpers can also be used to initiate seismic waves. Put simply, the amplitude and timing of these waves are recorded. This information is then used to aid in the exploration of petroleum, natural gas, and mineral deposits.

To be more specific, the acquisition of seismic data is paramount to the discovery of geophysical structures. Once identified, these structures can be further refined to identify specific drilling targets. That being said, on February 1, 2022, Global Helium announced the discovery of at least twelve additional structures from the first 53 km of its seismic program.

This prompted Global Helium to expand its seismic program by almost 40% to 94 km. With this in mind, Global Helium’s latest announcement signifies the conclusion of this program. As previously mentioned, the Company will now proceed toward surface land acquisition and permitting at multiple drill locations across Saskatchewan and Montana.

Three Core Areas

Global Helium property graphic — Global Helium Saskatchewan Project

Speaking of which, Global Helium has acquired numerous exploration permits located in Saskatchewan’s helium fairway, which is home to most of Canada’s helium reserves. Currently, Global Helium’s permits total 270,000 hectares with more exploration rights being acquired. It should be noted that the Company’s helium rights have been issued in mineral leases from the Provincial Government of Saskatchewan.

“We are now working on securing surface access and getting all locations permitted in preparation for a significant drilling program. It’s an incredibly exciting time to be on the team and a major shareholder at Global,” continued Jesse Griffith.

Furthermore, Global Helium handles the drilling, completion, production, separation, and liquefaction phases of exploration and production itself. With this in mind, the Company intends to construct a liquefaction facility, assuming the market remains favorable. Referring back to Global Helium’s permits, the Company’s permits cover three core areas of Saskatchewan.

Global Helium property — Source: Global Helium

Swift Current:

This area covers over 760,000 acres and is located northeast of Swift Current, Saskatchewan’s original helium production facility. The area is characterized by large geological structures, including the Lawson structure. The Lawson structure shows four-way closure over 17,000 acres and represents a potential structural trap for helium. Previous drill data indicates large percentages of non-combustible gas.

In addition to Lawson, another prospective structure was identified at the Company’s first core area. Dubbed Gilroy, this structure is approximately 11 square miles in size and appears to be a closed structure, which is ideal for trapping helium. Global Helium’s recent analysis represents a 47% increase in size versus the Company’s original estimate of 4,800 acres, or 7.5 square miles, on October 6, 2021.

Regina:

Global Helium’s second core area, Regina, encompasses more than 215,000 acres in south-central Saskatchewan. This area is host to multiple stratigraphic formations and helium targets. Moreover, many helium explorers have expressed their intent to pursue drilling targets adjacent to the Company’s land. That being said, adjacent wells have revealed helium concentrations ranging from 1.4% to 2.45%.

Montana Border:

The Company’s third core area covers 235,000 acres and is situated on the Canadian side of the Montana and Saskatchewan border. Conveniently, this border is located in the middle of Eastbrook and Climax, two recent helium discoveries in Saskatchewan. With this in mind, Global Helium’s third core area is located within close proximity of highly prospective land.

Global Helium intends to use gas processing equipment at, or near, wellheads to separate and refine gaseous helium. As alluded to earlier, the Company also plans to construct and operate a helium liquefaction facility near its properties. This will consolidate Global Helium’s production and enable the cost-effective shipment of helium to buyers identified by the Company’s team.

In Global Helium’s latest press release, the Company also announced that it has completed the seismic acquisition in the Rudyard and High Plains Drifter regions of Montana. This represents Global Helium’s second United States (US) acquisition. To be specific, on June 8, 2022, Global Helium announced that it had acquired more than 15 sections of previously tested helium property in the Rudyard area of Montana.

In the past, this property has revealed 1.3% helium at significant flow rates. Keep in mind that a helium discovery of 2% or more is considered significant in North America. In addition to Montana, Global Helium is situated in Saskatchewan where helium has been tested and produced in concentrations as high as 2%. Needless to say, Global Helium is situated in a highly prospective area.

Looking forward, Global Helium will conduct a soil gas and water well-testing program beginning immediately across its three core areas. This is intended to assist the Company in finalizing drilling locations. Having completed its seismic program, Global Helium has made significant progress toward the commencement of drilling, which the Company expects to begin sometime this year.

Global Helium’s share price opened at $0.415 today, down from a previous close of $0.42. The Company’s shares were down -4.76% and were trading at $0.40 as of 11:39 AM EST.