During April 2023 NAH completed construction of, and successfully brought onstream, its sixth helium purification facility near Mankota, Saskatchewan.
The new facility was constructed adjacent to the Company's current plant at Mankota, doubling this area's total productive capacity to over 50 million cubic feet per year.
NAH recently completed two new multi-year sales contracts and has successfully renegotiated several price reopeners on current contracts, at prices that better reflect the current market.
To help customers meet critical business requirements during the current global helium shortage, NAH continues to retain uncontracted helium volumes for the spot market as either high-purity gas or liquid. Due to announced maintenance outages at major helium facilities this year, the helium supply deficit is expected to worsen in the near term and the Company continues to work to ensure supply is available for critical end-users.
Further information about spot load sales, use of ISO containers, or marketing related logistics may be obtained on the NAH website HERE or by contacting Brad Neuls, Manager, Marketing and Logistics: [email protected].
The Company also announced that it has recently contracted a second drilling rig to accelerate growth in its business. The expanded 2023 drilling program is a mix of exploration and development targets across a range of established, emerging and proof-of-concept geologic targets on its vast acreage position.
Commenting on the Company's continued operational successes, Marlon McDougall, President and COO stated, "Bringing on three new helium purification facilities in different regions of southwest Saskatchewan over the span of the last five months is an incredible achievement. Just as important, we accomplished this with zero lost time incidents in the field. Safety for our employees and contractors continues to be a top priority at NAH. The Company now has six helium production facilities online, and I would like to thank our field construction and operations teams for the achievement of this milestone."
Mr. McDougall continued: "Including volumes from this latest facility, current helium production is in excess of 130 million cubic feet per year, representing approximately 5% of total helium supply in North America. This does not include another plant we plan to bring online in Q4 of this year. With the addition of the second rig to our drilling program, we expect to drill approximately 30 wells this year to support additional growth in 2024."
The Company's current CFO, Neil Burrows, will be retiring and transitioning out of the CFO position effective November 1, 2023. Neil will also stay on in an advisory role for an additional six months before retiring in May of 2024. Brad Borggard, current VP of Business Development and Investor Relations, will be assuming the CFO role.
"On behalf of the Board and Company, I would like to thank Neil for his contributions to our business over the last six years. Even though we are a private company, we endeavor to run our business to the reporting standards of a public entity and Neil has been responsible for building out those systems and controls over the years. He has prudently managed the finances of the Company during a time of tremendous growth and leaves us well positioned for the future," said Chairman and CEO, Nicholas Snyder.
Mr. McDougall added, "Brad Borggard joined us in 2022 with over 20 years of experience in the Canadian resource industry, having focused in the areas of finance, corporate planning, business development and investor relations. Producing helium as a pure-play from non-hydrocarbon sources is a new way of doing things. Brad has immersed himself in the nuances of the business and was instrumental in putting our credit facility in place earlier this year. We look forward to his continued contributions as we grow the Company."
Related Links
North American Helium
Space Technology News - Applications and Research
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