American Helium Provides Shareholder Update
VANCOUVER, July 19, 2018 – American Helium Inc. (the “Company” or “American Helium”) (TSX.V: AHE) (OTC: AHELF) (XFRA: 43UB), a resource exploration company focused on the global growth of technology-driven demand for helium.
The Company was formed in 2017 around the Bruin Point acreage in Carbon County, Utah. The new corporate activity immediately attracted a number of other opportunities and the Company executed agreements with Yankee Resources and Holbrook Basin Energy LLC (HBE), relating to projects in Eastern Colorado and the Holbrook Basin, Arizona respectively.
In December/January the Company acquired additional seismic on the Bruin Point acreage and was able to upgrade the resource potential of the project. The further work also highlighted the risks associated with the drilling and possible development of the single prospect that was matured.
American Helium’s project with Yankee Resources in Eastern Colorado has two aspects to it. It aims to acquire acreage for re-entry or twin-drilling of two wells in the western part of the project area and to shoot a 3D seismic survey on the majority of the acreage. The two wells produced natural gas until the mid-1990s when production was suspended. Gas analysis shows a helium content of 4.3% from a well that flowed 3-4 MMCFD of gas. These would be commercial quantities and this significantly lowers the risk of developing helium production and as such is a higher priority project than the Bruin Point property in Utah.
In addition, to the twinning of the wells, the Company aims to lease up to 14,000 acres of land and shoot a 3D seismic survey of some 28 square miles to mature prospects in the Upper Morrow formation. Helium content of 4 to 5% is expected. The seismic survey is planned for late 2018 and can be carried out after the harvest season and in parallel with the re-entry or redrill of the two wells.
The third project, that was recently announced, is in the Holbrook Basin, a well-established helium production district where concentrations of the gas of up to 10% have been established. The area has strong potential for additional discoveries and production.
HBE has developed a compelling exploration play that is of interest to the Company and target land identification is underway. However, whilst in our earlier announcement we indicated a location for an exploration well location could be immediately available, we now believe this drilling has to be preceded by a seismic survey.
Our website is being updated to reflect our exploration priorities moving forward. However, it is difficult to provide extensive detail on the Colorado and Arizona projects until we have attained the necessary land holdings, without inviting competition. We will endeavor to do so at the earliest opportunity.
American Helium is now well positioned with a diverse selection of projects. Successful implementation of the above strategy is contingent on a number of items including the ability to acquire additional acreage. The Company is actively seeking the capital necessary to implement the drill program.
For more information about American Helium, please visit www.amerihelium.com.
About American Helium TSX.V: AHE | OTC: AHELF | XFRA: 43UB
American Helium Inc. is an exploration stage company with offices in British Columbia, Canada and Denver, Colorado. The Company is currently exploring for helium in Eastern Colorado, Navajo County, Arizona and Carbon County, Utah while evaluating additional potential acquisitions in known Helium productive regions. With drilling planned in 2018, American Helium is aiming to capture an opportunity offered by rising global helium prices. American Helium Inc. is listed on the TSX Venture, OTCQB and Frankfurt markets.
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.
SOURCE American Helium Inc.
For further information: Contact American Helium Inc., Operations Office, Denver, Office: 303-285-3396, Cell: 720-238-4761, Frank Jacobs, Director, President & CEO, Email: firstname.lastname@example.org; Corporate Activity and Administration, Tel: 604.685.9316, Email: email@example.com; Nick DeMare, Director, Email: firstname.lastname@example.org