CALGARY, Alberta, May 23, 2023 (GLOBE NEWSWIRE) -- Helium Evolution Incorporated (TSXV:HEVI) ("HEVI" or the "Company"), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, today announced the filing of the Company's interim condensed financial statements and associated management's discussion and analysis ("MD&A") for the three month period ended March 31, 2023 (the "Quarterly Report").
Complete details of the Quarterly Report are available on SEDAR at www.sedar.com, and on HEVI's website.
Three Month Period Ended March 31, 2023 Highlights:
| Three months ended | ||
| Tabular amounts in thousands of Canadian Dollars, except share and per share amounts | March 31, 2023 | March 31, 2022 |
| Financial | ||
| Net loss | 311 | 1,654 |
| Net loss per share, basic and diluted | 0.00 | 0.04 |
| Cash | 8,229 | 10,119 |
| Working capital | 9,226 | 9,918 |
| Total assets | 13,094 | 12,038 |
| Total liabilities | 356 | 497 |
| Weighted average shares outstanding | ||
| Basic and diluted1 | 96,033,974 | 41,609,979 |
1The weighted average number of common shares outstanding is not increased for outstanding stock options and warrants when the effect is anti-dilutive.
During the first quarter of 2023, HEVI continued to execute on its focused strategy of developing the Company's 5.6 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. In the first quarter of 2023, the Company acquired approximately 600 kilometers of 2D seismic, further enhancing our geophysical database, which is essential for the identification and de-risking of HEVI's Q4/23 and Q1/24 drilling targets. Consistent with prior quarters, the Company maintained ongoing financial flexibility, demonstrated by a positive working capital position of $9.2 million at March 31, 2023.
Outlook
HEVI remains optimistic about the prospect of a commercial helium development on its expansive land holdings and looks forward to benefitting from the near-term exploration of the Company's asset base by North American Helium ("NAH"). Aligning with NAH as a partner through various farmout arrangements has afforded HEVI the ability to conserve capital, while also securing the right to participate in future development wells drilled on the Company's lands, providing a truly differentiated position to support HEVI's path towards commercial helium production.
Numerous meaningful operational milestones are ahead of HEVI in the near term, including a third test well at 12-11-05-10W3 ("Test Well #3"), which is expected to be spud by NAH on or before July 14, 2023. While NAH is responsible for 100% of the drilling costs for Test Well #3, HEVI retains a 20% working interest in the well, along with all further associated development wells as per the enhanced farm-out agreement (the "Amended Farmout Agreement") 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. These include the selection of two further test wells at Fox and Gravelbourg ("Test Well #4" and "Test Well #5") and the option for NAH to select up to three additional drilling locations under two separate seismic agreements (collectively, the "Seismic Agreements"), also announced on October 21, 2022.
Upon confirmation of the drilling location selections by NAH under the terms of the Agreements, HEVI's remaining lands will be fully released, allowing the Company to pursue its own development program designed to support organic growth. Using the seismic data HEVI has accumulated to date, which totals approximately 2,000 kilometers, the HEVI team is intently working on developing prospective helium targets and internally generated drilling opportunities that can be pursued over and above activities under the Amended Farmout Agreement. The Company expects to identify 10 to 12 prospective drilling targets by the end of 2023 and looks forward to providing stakeholders with further updates on its plans through the second half of 2023.
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 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 5.6 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.
For further information, please contact:
| Greg Robb, President & CEO Kristi Kunec, CFO | Phone: 1-587-330-2459 Email: info@heliumevolution.ca Web: https://www.heliumevolution.ca/ |
| Cindy Gray, Investor Relations | info@5qir.com | 1-403-705-5076 |
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 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 and/or HEVI 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 and/or HEVI 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, HEVI may defer the drilling of wells on its 100% lands, 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.
