Pinta South Helium Project Raises Helium Purchase Amidst Shortage
- 27-Mar-2023 5:32 PM
- Journalist: Jai Sen
Arizona- Total Helium is a publicly traded Helium production and storage solutions business dedicated to bringing a consistent, domestic supply of products to the US market. Despite the improved supply chain and better operational activities, the domestic and international market still faces supply shortages, and the situation is anticipated to resolve in upcoming quarters. Total Helium has signed a definitive purchase and selling agreement for a joint venture in Arizona's Pinta South Helium Project. The company is working with an industrial gas partner to build an underground gas storage facility to guarantee that the US has a consistent source for the foreseeable future.
The agreement, signed by US producers Brooks Range Corporation, Butler Minerals, and Mid America Exploration, provides for the gaining of a stake in existing product output as well as a large-scale Helium exploration and production program in the Holbrook Basin (Arizona, US). Total Helium will acquire a 20% stake in two producing wells with an average daily gross gas output of more than 250 million cubic feet per day and Helium concentrations higher than 8% as part of the joint venture.
According to an official statement, Total Helium might also purchase a 50% stake in eight extra existing wells that will be linked to a Helium processing plant. Total Helium CEO stated that the joint venture builds on current relationships and will generate substantial shareholder value. The Pinta South Helium Project in Arizona will boost the availability of products to cater to the domestic and international market demand and has over 150 potential drill sites.
Following the deal, Total Helium intends to begin drilling and finishing ten additional wells, bringing the total number of producing wells to 20 by the end of June 2023. As a ripple effect, the overall production and capacity of the product are estimated to incline toward the end of the second quarter of 2023.