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 the Company’s audited financial results for the year
ended December 31, 2022, along with a corporate update on
activities that have occurred subsequent to year end.
For complete details of the annual audited
financial statements and the associated management’s discussion and
analysis, please refer to the Company’s filing on SEDAR
(www.sedar.com).
Three Months and Year Ended December 31,
2022 Highlights:
|
Three months
ended |
|
Tabular amounts in thousands of Canadian Dollars, except share
and per share amounts |
December 31, 2022 |
December 31, 2021 |
Year ended December 31, 2022 |
Period ended December 31, 20212 |
Financial |
|
|
|
|
Net loss |
520 |
389 |
7,363 |
1,412 |
Net loss per share, basic and diluted |
0.01 |
0.01 |
0.09 |
0.06 |
Cash |
9,128 |
171 |
9,128 |
171 |
Working capital |
10,236 |
511 |
10,236 |
320 |
Total assets |
13,022 |
13,666 |
13,022 |
13,666 |
Total liabilities |
226 |
12,530 |
226 |
12,530 |
Weighted average shares outstanding |
|
|
|
|
Basic and diluted1 |
96,033,974 |
34,184,280 |
78,397,100 |
25,495,726 |
1The weighted average number of common shares
outstanding is not increased for outstanding stock options and
warrants when the effect is anti-dilutive.2From the period of
incorporation on January 14, 2021 to December 31, 2021
During the final quarter of 2022, HEVI continued
to execute on its focused strategy of developing the Company’s 5.5
million acres of helium rights in southern Saskatchewan and
advancing its ultimate goal of producing and selling helium,
generating cash flow and driving positive returns for
shareholders.
North American Helium (“NAH”),
a strategic investor in HEVI and the Company’s counter-party on
various farmout and seismic agreements, drilled two farmout wells
in the fourth quarter. The first of these wells (Test Well #1) was
cased for further evaluation and the second well (Test Well #2) was
abandoned. Given helium development in Saskatchewan is still in its
relative infancy, HEVI’s near and longer-term outlook for the
potential of its vast asset base remains very positive.
To help drive continued development, further
enhance the Company’s understanding of the play and facilitate the
identification of future potential drilling targets, HEVI’s
technical team is continuing to undertake extensive geological and
geophysical modelling of its existing seismic trade database, while
also seeking to add incremental seismic. Subsequent to
December 31, 2022, HEVI successfully bolstered the Company’s
seismic library by obtaining approximately 600km of existing 2D
seismic lines.
The Company has also been successful in
retaining ongoing financial flexibility, demonstrated by a positive
working capital position of $10.2 million at the end of the year.
Aligning with NAH through various farmout arrangements has afforded
HEVI the ability to conserve capital while also having the right to
participate in future development wells drilled on the Company
lands, providing a truly differentiated position to support the
Company’s future.
Outlook
HEVI continues to be excited about the prospect
of a commercial helium development on its expansive land base, and
looks forward to benefitting from the continued exploration and
development of the Company’s asset base by NAH. There are numerous
operational milestones in the near term for HEVI, including test
well #3 at 12-11-05-10W3 (“Test Well #3”), which
is expected to be spud by NAH on or before July 14, 2023. NAH is
responsible for 100% of the drilling costs for Test Well #3 while
HEVI retains a 20% working interest in the well, as per the
enhanced farm-out agreement (the “Amended Farmout
Agreement”) with NAH as announced on October 21, 2022. In
addition, there are several other key milestones under the Amended
Farmout Agreement which are expected to take place throughout the
second and third quarters of 2023, including:
- NAH must select
drilling locations for two additional test wells at Fox and
Gravelbourg (“Test Well #4” and “Test Well
#5”) by June 30, 2023 as per the terms in the Amended
Farmout Agreement; and
- NAH has the option
to select up to two additional well locations by June 30, 2023 and
one additional well location by July 31, 2023 under two separate
seismic agreements (collectively, the “Seismic
Agreements”) also announced on October 21, 2022. Upon
confirmation of these location selections, the remaining 5.5
million acres of HEVI’s land will be fully released, allowing the
Company to pursue its own development program.
As the Company continues to advance its
objectives and meet milestones, HEVI intends to provide ongoing
updates to shareholders via news releases and to engage with
existing and future potential shareholders through market
engagement, its social media platforms and through conference
attendance.
Stay Connected to Helium
Evolution
Shareholders and other parties interested in
learning more about the Helium Evolution opportunity are encouraged
to visit the Company’s website, which includes an updated corporate
presentation, and are invited to follow the Company on LinkedIn and
Twitter for ongoing corporate updates and helium industry
information. Helium Evolution also provides an extensive,
commissioned ‘deep-dive’ research report prepared by a third party
whose background includes serving as a research analyst for several
bank-owned and independent investment dealers. In addition to
recent media articles, HEVI maintains a profile on the Investing
News Network platform, where further information, editorial pieces
and industry reviews are available.
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 &
CEOKristi Kunec, CFO |
Phone: 1-587-330-2459Email: info@heliumevolution.caWeb:
https://www.heliumevolution.ca/ |
|
|
Cindy Gray, Investor
Relations |
info@5qir.com | 1-403-705-5076 |
|
|
Statement
Regarding Forward-Looking
InformationThis 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 Company’s and NAH’s exploration and drilling plans, the
Company’s ability to identify future exploration and drilling
targets, activities related to the Amended Farmout Agreement and
Seismic Agreements, increasing shareholder value, the Company’s
ability to preserve capital, spud date of Test Well #3 and the
drilling timeline for any future NAH drills, the timeline for the
selection of Test Well #4, Test Well #5 and locations under the
Seismic Agreements, timing of ongoing updates to shareholders,
participation in future NAH wells, success of NAH wells 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 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: NAH may
be unsuccessful in drilling commercially productive wells, NAH may
defer the drilling of the Test Well #3 and or the selection and
drilling of Test Well #4, Test Well #5, any wells under the Seismic
Agreements and subsequent wells; 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 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.
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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