High prices are the solution to high prices if the market is competitive.
The Saskatchewan focus on helium exploration is an example. Helium gas prices were stable for years running from $50 US a thousand cubic feet to $100 around 2013.
That price soared to $250 in 2018 when the United States stopped selling helium from federal lands to keep it in reserve. That source supplied one-fifth of the world’s helium.
The United States still produces 70 per cent of global supply but reserves are shrinking thus the push for new sources.
Increasing use of helium in MRI machines, data technology and industry spur the need for more reserves.
Eight public helium companies listed in Canada provide ground floor speculations for investors. That ground floor will be a limited time opportunity as helium deposits are being developed in Russia, Middle East, North Africa, East Africa as well as the U.S and Canada.
Some of the eight companies are more advanced than others, offering a little less risk but are still highly speculative.
Desert Mountain Energy, trading at $2.48, is the most advanced in the Holbrook Basin of Arizona with four wells returning exceptionally high four per cent and 11 per cent helium content.
Production will start by year end with seven more wells planned from $25 million cash on hand.
First Helium, 42.5 cents, operates in the Worsley gas field of northwestern Alberta, with two wells and plans for production this year.
One well has 1.4 per cent helium and 65 per cent natural gas. The other will run out 400 barrels of oil per day. First Helium studied results of 23,000 gas wells to select leases.
Total Helium, $1.38, has four wells in Kansas running at 1.4 per cent helium with a $900,000 advance payment before production starts in addition to $8 million cash.
Imperial Helium, 19 cents, has a three wells in the aging gas field of Steveville in southern Alberta with production planned this year at the rate of 5,000 to 8,000 cubic feet per day. Imperial evaluated 200,000 gas wells for its leases.
Avanti Energy, $1.62, with leases in northern Montana and southern Alberta, is testing the first two of four wells on leases in the helium fairway.
Royal Helium, 38.5 cents, has .65 per cent helium in two of four wells being drilled on Climax area leases with leases in Ogema and southeastern Saskatchewan.
Saskatchewan helium production is environmentally friendly by producing mostly harmless nitrogen with helium.
Global Helium, 78 cents, has one million plus acres with large leases in the Moose Jaw region. Global pins its hopes on a 1944 Imperial Oil well that found mostly nitrogen but there was no testing for helium. A second old well was similar. The compony is doing lease evaluation with seismic and magnetic tests and searching old well records for helium content.
VVC Explorations, 15 cents, is developing an open pit copper mine in New Mexico and plans production from Kansas wells with two per cent helium content.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at [email protected]
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
