Business
PetroSun Announces Agreement to Process Future Helium Production
PetroSun Announces Agreement to Process Future Helium Production.
About this update from Petrosun, Inc.
[{"type":"text","content":"PHOENIX, AZ / ACCESSWIRE / February 22, 2023 / PetroSun, Inc. (OTC PINK:PSUD; the "Company") announced today that the Company has entered into an agreed framework under which future production from certain wells which may be drilled on PetroSun leaseholds in the Holbrook Basin can be marketed to a third-party processing plant.Under the agreement, PetroSun holds an option to deliver production from commercial helium discoveries to Desert Mountain Energy's McCauley processing facility. Desert Mountain will have a right to approve any sales of gas based on gas composition, available processing capacity at the facility and other considerations. Production would then be sold at terms and pricing to be agreed. Desert Mountain's McCauley facility is located south of Winslow, Arizona, where Desert Mountain has drilled and completed several wells, and nearby unexplored leases held by PetroSun. Following the commencement of deliveries to the facility, either party may terminate the arrangement at any time.PetroSun's Chief Financial Officer, Chris Hewitt, commented, "This agreement provides PetroSun with an interim path to bring production of helium to market following a discovery of commercial reserves. Upon the agreement of the parties to pricing and terms, PetroSun would transport gas volumes under pressure via truck to the McCauley facility."Hewitt continued, "Although we are not ready to commence production at this time from any well, and the Company's Manuel Seep wellbore awaits perforation and testing to determine commerciality, the agreement provides PetroSun with a flexible path to market new helium production until the Company is ready to construct its own processing plant. We appreciate this agreement with Desert Mountain Energy Corp. and look forward to building our relationship with the Desert Mountain team in areas of overlapping interest."ABOUT PETROSUN, INC.PetroSun, Inc. owns significant leasehold acreage that is prospective in helium exploration and production in the Holbrook Basin of Arizona and prospective for natural gas and helium in the Paradox Basin of Utah. The Company holds mineral leases on approximately 280,000 gross acres in the Holbrook Basin and over 26,000 gross acres in the Paradox Basin. The Company trades on the OTC Pink Sheets under the symbol "PSUD".Forward-Lookin...