VANCOUVER, July 19, 2018 /CNW/ - 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.