Total Helium (OTC:TTLHF) Completes Joint Venture Agreement With Shares Plus Cash And Will Develop Arizona Helium Field

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[{"type":"text","content":"\nTotal Helium (OTC:TTLHF) Completes Joint Venture Agreement With Shares Plus Cash And Will Develop Arizona Helium FieldDENVER, CO / ACCESSWIRE / May 5, 2023 / Total Helium Ltd. (OTC:TTLHF), a helium exploration and production company, has completed the acquisition of a joint venture agreement for a helium field. The purchase agreement was made in January 2023 and subsequently amended from all cash to include shares as part of the agreement. The agreement was for a stake in the Pinta South project, a helium-rich natural gas field in the Holbrook Basin, Arizona. The Joint Venture (JV) agreement was entered into by Brooks Range Corporation, a wholly-owned subsidiary of Total Helium, and its new partners Pinta South Operating Company LLC, Butler Minerals I LLC and Mid America Exploration LLC.The JV gives Total Helium a 20% interest in two currently producing wells, plus a 50% interest in eight additional existing wells. The purchase price is $12 million, and with the update to the venture, Total Helium paid $8 million in cash, and provided just under 11 million common shares, at the deemed value of $0.50 per share.Stock Agreement Incentives Project Success For JV PartnersBy paying for the deal with stock as well as cash, Total Helium has ensured all the JV partners are incentivized to see the success of the project and to increase shareholder value. The Pinta South project has a very high helium concentration of 5-8%, and the shallow-producing formation is ideal for lower-cost drilling and completion. The company has plans to have 20 operational wells by the end of the first half of 2023. Total Helium satisfied the cash portion of the agreement, as well as the costs for developing the project, with a brokered private placement. In connection with the completion of the offering, it issued 25 million special warrants to raise gross proceeds of $12.5 million.The agreement comes at a time of sustained demand for helium. The industry was worth $4.4 billion globally in 2022 and is predicted to reach $5 billion in 2023, representing a compound annual growth rate (CAGR) of over 12%. Non-renewable gas is essential for the technology, industrial and medical device sectors, with uses ranging from semiconductors and rockets to fiber optics and magnetic resonance imaging (MRI) devices.As the U.S. government's reserves of helium get depleted, To...

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