CALGARY, Alberta, May 20, 2022 (GLOBE NEWSWIRE) -- Helium Evolution Incorporated (TSXV:HEVI) ("HEVI" or the "Company"), a Canadian-based helium exploration and production company focused on developing assets in southern Saskatchewan, today announced the filing of our audited financial results for the three-month period ended March 31, 2022.
For complete details of the consolidated financial statements and the associated management's discussion and analysis ("MD&A"), please refer to the Company's filing on SEDAR (www.sedar.com).
HEVI Q1 2022 Highlights:
|Three months ended March 31,|
|Tabular amounts in thousands of Canadian Dollars, except share and per share amounts||2022||2021|
|Net loss per share, basic and diluted||(0.04)||(0.05)|
|Weighted average shares outstanding|
|Basic and diluted1||41,609,979||15,081,300|
1The weighted average number of common shares outstanding is not increased for outstanding stock options and warrants when the effect is anti-dilutive.
On March 16, 2022, Helium Evolution concluded our transaction with Duckhorn Ventures Ltd. ("Duckhorn") which resulted in a reverse takeover of Duckhorn by the shareholders of HEVI, enabling our shares to commence trading on the TSX Venture Exchange on Wednesday, March 30, 2022. As at the end of the quarter, we had 78,738,474 common shares issued and outstanding on an undiluted basis, of which 15,950,094 (representing 20.3% on an undiluted basis) are held by our senior executive and our board of directors.
The Company's first quarter 2022 activities were largely focused on concluding our reverse takeover transaction and undertaking the required preparations for a public listing. From an operational perspective, capital expenditures through the first three months of 2022 totaled $946,000, largely directed to ongoing evaluation and assessment of prospects on existing helium permits during the quarter.
The Company continued to evaluate prospects on existing helium permits during the quarter, leveraging the 750 km of 2D seismic that HEVI has purchased and shot since inception. This led to the identification of numerous drilling targets in the Mankota/McCord area of south-central Saskatchewan, which will be the Company's first core area. HEVI retains considerable flexibility in managing capital given the long tenure of helium permits granted by the Government of Saskatchewan, as commitments related to the lease and permit terms are incorporated into the capital budget.
The Company acquired additional helium permits in Saskatchewan during Q1 2022, increasing our land position to approximately 5.5 million acres. HEVI is positioned as the largest holder of helium exploration rights in North America among publicly listed helium companies.
Key milestones achieved year-to-date:
- Established 2022 drilling program: Continued to accelerate HEVI's drive towards commercialization with the identification of up to six drilling targets for our initial drilling program commencing in mid-2022.
- Identification of new drilling targets: A further 10-12 potential targets were identified through interpretation of seismic, which can be pursued once commercialization is achieved.
- Expanded land position: Increased helium permits acquired to 5.5 million acres under an initial three-year term with the Government of Saskatchewan. Helium permit terms can be extended to more than 20-years at the option of the Company, provided certain minimum expenditures and lease rental payments occur.
- Secured extensive seismic database: Purchased existing and shot new 2D seismic lines, and undertook seismic reprocessing and interpretation, along with well log integration, to refine the geological model used to select our initial six drilling targets.
- Provided shareholder liquidity: Listed on the TSXV on March 30, 2022, providing liquidity options for shareholders as well as enhancing HEVI's visibility to new potential investors, partners and off-takers.
- Strengthened the board: Added Heather Isidoro to the board of directors, who brings extensive technical and business development experience as we initiate our 2022 drill program.
We are extremely proud of the success our team has realized to date in 2022, and excited about commencing our drill program in the first half of June. Looking ahead to the second quarter of 2022, we have contracted a drilling rig for up to four wells and have secured the required production casing, which helps mitigate risk due to supply chain issues.
As we execute on our drilling program, we will continue to provide shareholders with updates on results, capital expenditure plans and expectations for securing processing facilities and off-take agreements that can support our commercialization over the near and longer-term. Based on an initial spud date of mid-June, we anticipate being able to share preliminary results on the well by the middle to end of July and keep our shareholders apprised of continued operational advancements.
Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to read an extensive, 'deep-dive' research report commissioned by Helium Evolution and prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers. In addition, HEVI is profiled on the Investing News Network platform, where further information, editorial pieces and industry reviews are available and has been featured in recent news media articles. Additional information is available on the Company's website, including a current corporate presentation, and we encourage you to follow the Company on LinkedIn and Twitter for ongoing corporate updates and helium industry information.
About Helium Evolution Incorporated
Helium Evolution is a Canadian-based helium exploration and production company holding the largest helium land rights position in North America among publicly-traded companies, focused on developing assets in southern Saskatchewan. The Company has over five million acres of land under permit near proven discoveries of economic helium concentrations which will support scaling the exploration and development efforts across its land base. HEVI's management and board are executing a differentiated strategy to become a leading supplier of sustainably-produced helium for the growing global helium market, offering a compelling opportunity for investors.
For further information, please contact:
|Greg Robb, President & CEO|
Ryan Tomlinson, CFO
|Phone: 1-587-330-2459 |
|Cindy Gray, Investor Relationsemail@example.com | 403-705-5076|
Statement Regarding Forward-Looking Information
This news release contains statements that constitute "forward-looking statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document include statements regarding the Company's expectations regarding the commencement of drilling by the Company and timing of results therefrom, increasing shareholder value, the provision of operational updates to shareholders and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the Company may choose to defer, accelerate or abandon its drilling plans; new laws or regulations and/or unforeseen events could adversely affect the Company's business and results of operations; stock markets have experienced volatility that often has been unrelated to the performance of companies and such volatility may adversely affect the price of the Company's securities regardless of its operating performance risks generally associated with the exploration for and production of resources; the uncertainty of estimates and projections relating to expenses; constraint in the availability of services; commodity price and exchange rate fluctuations; the current COVID-19 pandemic; adverse weather or break-up conditions; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
This press release is not for distribution to U.S. news services or for dissemination in the United States. This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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