Royal Helium Signs Off Take Sales Agreement for the Remainder of Steveville’s 99.999% Refined Helium Production
May 26, 2023
Saskatoon, Saskatchewan, May 26, 2023 – Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) ("Royal" or the “Company”) is pleased to announce that it has signed a second, multi-year, fixed price off take sales agreement (the “Sales Agreement”) with a private North American corporation. The new sales agreement is in addition to the previously announced off take (see news release of August 29, 2022) and represents the remaining capacity from Royal’s Steveville Helium processing facility located near the town of Brooks in southeastern Alberta, Canada. The new offtake for refined, 99.999% helium represents approximately 50% of the Steveville capacity and is priced at USD $625/mcf, net of all transportation and liquefaction costs.
The term of the Sales Agreement is 36 months, commencing on first delivery with matching terms and conditions of the August 2022 sales agreement.
Andrew Davidson President and CEO comments. “As the commissioning of our first helium processing facility approaches, we are pleased to now have sales commitments for all of Steveville’s capacity. The Steveville facility is fed by two of Royal’s 100% owned helium wells and is designed to produce 99.999% refined helium gas which will be liquefied in Colorado under our previously announced tolling agreement.”
About Royal Helium Ltd.
Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium. The Company controls over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly 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 90% less carbon intensive than helium extraction processes in other jurisdictions.
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Royal Helium Ltd
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