Business
Acquisition of Helium Licences in Montana
Acquisition of Helium Licences in Montana.
About this update from Chill Brands Group Plc
[{"type":"text","content":"\n \nRNS Number : 5151A Highlands Natural Resources PLC 08 June 2016 \n\n8 June 2016\nHighlands Natural Resources plc ('Highlands' or 'the Company')\nAcquisition of Helium Licences in Montana at Low Cost\n \nHighlands, the London listed natural resources company, is pleased to announce that, in line with its strategy of seeking out potential value adding acquisitions, it has acquired exploration licences covering 59,033.82 acres located in Custer, Carter and Fallon Counties, Montana. These licences represent the potential natural gas and helium play that Highlands announced that it was evaluating on 25 April 2016.\n \nAs previously announced, numerous shows of gas have been encountered across this target region. Historic gas analysis reveals that the gas contains elevated concentrations of helium (0.36 per cent) similar to the US Hugoton helium field, which is the largest natural accumulation of helium in the United States. Consequently, the Company believes that a significant volume of gas, containing helium, could exist in this region which, if correct, would represent a significant helium resource in North America. Further investigations are required and Highlands has commissioned RPS Knowledge Reservoir to prepare a competent person's report in this regard. Further updates will be provided to shareholders in due course.\n \nThe consideration of US$91,050.73 has been satisfied through a cash payment.\n \nThe Importance of Helium\n \nThe United States Bureau of Land Management (BLM) sold helium for US$104.00 per thousand cubic feet in 2015 compared to current natural gas prices of approximately US$2.40 per thousand cubic feet. Privately negotiated sales of Grade A helium priced for approximately $200.00 per thousand cubic feet in 2015 according to the United States Geological Survey (USGS). Due to worldwide demand, Highlands forecasts that helium prices could rise significantly. The strong price environment is due to dwindling helium resources which could lead to potential shortages of helium feedstocks globally. The Federal Helium Reserve at the Cliffside Gas Field near Amarillo, Texas was established in 1925 to conserve scarce helium resources and the helium refining capacity connected to it currently requires approximately 2.3 billion cubic feet per annum, r...