Helium Evolution Announces Filing of Second Quarter 2022 Financial Results and Provides Corporate Update
Strong balance sheet, cost control and disciplined allocation of capital support HEVI’s ongoing strategy execution
CALGARY, Alberta, Aug. 23, 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 unaudited financial results for the three-and six-month periods ended June 30, 2022, along with a corporate update that includes a change in management and posting of an updated corporate presentation on HEVI’s website.
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 Q2 & First Half 2022 Highlights:
|Three months ended June 30,||Six months ended June 30,|
|Tabular amounts in thousands of Canadian Dollars, except share and per share amounts||2022||2021||2022||2021|
|Net loss per share, basic and diluted||0.02||0.00||0.05||0.04|
|Weighted average shares outstanding|
|Basic and diluted1||79,118,595||20,274,129||60,467,902||17,910,925|
1The weighted average number of common shares outstanding is not increased for outstanding stock options and warrants when the effect is anti-dilutive.
The second quarter of 2022 was HEVI’s first full quarter as a publicly traded company, cementing HEVI’s position as the largest holder of helium exploration rights in North America among publicly-traded helium companies. The most significant highlight during the quarter was our announcement of HEVI’s farmout agreement (the “Farmout Agreement“) with North American Helium Inc. (“NAH”) and associated non–brokered, brokered and strategic investor private placements that raised aggregate gross proceeds of $6.9 million. The NAH farmout agreement validates and differentiates HEVI’s strategy, while aligning the Company with one of the helium industry’s leading operators. The related financings enhanced HEVI’s financial flexibility to fund the farmout arrangement and execution of our overall strategy, while also contributing to a cash balance of approximately $14.0 million exiting Q2/22.
HEVI’s internal exploration and development program is supplemented by our farmout with NAH which provides additional opportunities and further capital to prove up the Company’s asset base and continue driving towards commercialization. Under the farmout, NAH will drill a total of five wells while incurring 100% of the drilling expenditures on three predetermined land blocks in Saskatchewan, representing approximately 2.3 million acres located west of the third meridian (the “Blocks”), excluding our current drilling focus at McCord. For each well drilled, NAH will earn an 80% operated interest in the section on which the well was drilled plus nine contiguous sections of land adjoining to the well, up to a maximum of 32,000 acres. HEVI will retain a 20% working interest in the earned lands and each successful well drilled by NAH (the “HEVI Working Interest“).
Capital expenditures during the second quarter totaled $1.06 million, largely directed to licensing and environmental work, the commencement of drilling the Company’s first helium exploration well, along with the pre-purchase of casing to mitigate against ongoing supply chain issues. Drilling of both wells concluded during the third quarter, and although both indicated the presence of helium, the targeted geological traps did not contain sufficient quantities of helium to support production testing at this time. HEVI is committed to continued capital discipline and is in the process of conducting further analysis on logs and other information obtained through the drilling process to date. We intend to secure additional 2D seismic at McCord to facilitate and enhance visibility into the play, and may also elect to re-enter these wells in the future. We believe the NAH drilling program will also provide valuable data to support the identification of future high-quality drilling targets.
Currently, HEVI has approximately $10 million in cash and stringent cost reduction initiatives in place to optimize funds for asset development. In addition, we benefit from a valuable farmout agreement that can complement our ongoing exploration and development efforts. The HEVI team maintains full confidence in the prospectivity of our sizeable land package and due to the long tenure of helium permits granted by the Government of Saskatchewan, retain considerable flexibility in managing our capital.
Management Change and Updated Corporate Presentation
HEVI also announced today that Chief Financial Officer, Ryan Tomlinson, has resigned his position effective August 24, 2022 having accepted a new role within a different industry. HEVI is currently searching for a replacement to fulfill the duties previously discharged by Mr. Tomlinson. HEVI wishes Mr. Tomlinson the best in his future endeavours.
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 & CEO||Phone: 1-587-330-2459
|Cindy Gray, Investor Relationsfirstname.lastname@example.org | 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 Company’s exploration program, including the purchase of 3D seismic and activities related to the Farmout Agreement, increasing shareholder value, the retention of a new chief financial officer 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.
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.