SASKATOON, SK, Jan. 11,
2023 /CNW/ - Royal Helium Ltd. (TSXV:
RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) ("Royal" or the
"Company") is pleased to announce that it has signed a
tolling services agreement with Tumbleweed Midstream LLC, of
Colorado ("Tumbleweed")
under which Tumbleweed will process Royal's 99.999% gaseous helium
at its Ladder Creek Liquefaction Facility ("Ladder Creek")
into liquid helium. The refined helium gas will be delivered from
Royal's helium wells and helium processing plant currently under
construction at Steveville, Alberta to Tumbleweed's facility in
Colorado. Ladder Creek has
warranted that the liquid helium delivered will meet or exceed a
purity level of 99.999% in compliance with Compressed Gas
Association G-9.1-2014 Commodity Specification for Helium.
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Mr. Andrew Davidson, President,
and CEO of Royal states, "We are pleased to be working with Ladder
Creek as our tolling services provider for the liquefaction of
Royal's refined gaseous helium. Liquefaction is a crucial step in
both Royal's production process and our off-take partner's purchase
process, as gaseous helium cannot be stored or transported over
long distances. Ladder Creek's location and processing capabilities
and specifications align perfectly with our off-take partner's
delivery requirements."
The primary term of this agreement is for 3 years, through to
December 31, 2025, and is renewable
on a year-to-year basis thereafter. Ladder Creek will process up to
24 million cubic feet of crude helium per year for Royal with
provisions for some excess if capacity allows.
About Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land
across southern Saskatchewan and
southeastern Alberta. All of
Royal's lands are in close vicinity to highways, roads, cities and
importantly, close to existing oil and gas infrastructure, with a
significant portion of its land in close proximity to existing
helium producing locations. With stable, rising prices and limited,
non-renewable sources for helium worldwide, Royal intends to become
a leading North American producer of this high value commodity.
Royal's helium reservoirs are carried primarily with nitrogen.
Nitrogen is not considered a greenhouse gas ("GHG") and
therefore has a low GHG footprint when compared to other
jurisdictions that rely on large scale natural gas production for
helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 99% less carbon intensive
than helium extraction processes in other jurisdictions.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
Neither 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 news release.
This news release includes certain statements that may be
deemed to be "forward-looking statements". All statements in this
news release, other than statements of historical facts, that
address events or developments that management of the Company
expects, are forward-looking statements, including anticipated
deliveries under Royal's offtake agreement, the intended
construction of a helium processing plant in Steveville,
Alberta and the processing
capabilities of Ladder Creek. In addition, all references to
resources are deemed to be forward-looking statements as they
involve the implied assessment, based on certain estimates and
assumptions, that the resources described exist in the quantities
predicted or estimated and can be profitably produced in the
future. These forward-looking statements are subject to numerous
risks and uncertainties, certain of which are beyond the Company's
control, including without limitation, risks associated with oil
and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of
commodity prices, volatility in production rates, environmental
risks, inability to obtain drilling rigs or other services, capital
expenditure costs, including drilling, completion and facility
costs, unexpected decline rates in wells, wells not performing as
expected, delays resulting from or inability to obtain required
third party and regulatory approvals, ability to access sufficient
capital from internal and external sources, inability to access gas
transportation and processing infrastructure, the impact of general
economic conditions in Canada,
the United States and overseas,
industry conditions, changes in laws and regulations (including the
adoption of new environmental laws and regulations) and changes in
how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management,
fluctuations in foreign exchange or interest rates, and the
uncertainty of estimates and projections of production, costs and
expenses. Although management believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ
materially from those in the forward-looking statements. The
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Please see the public filings of the
Company at www.sedar.com for further information and risks
applicable to the Company.
SOURCE Royal Helium Ltd.