VVC Exploration Corporation ("VVC" or the "Company") (TSX-V:VVC) announces the addition of a new gas property in its wholly owned subsidiary, Plateau Helium Corporation ("PHC"), a Wyoming corporation. The transaction bolsters VVC’s helium portfolio and its ability to capitalize on the growing demand for helium, driven by increased global usage.
The property, known as the Syracuse Extension 1, was purchased at a nominal cost and a commitment to commence production, with the seller retaining a 2% royalty in the property. In addition to the 2% royalty, standard industry royalties of 12.5% are payable to arm's length land owners from the proceeds of any production. PHC owns a 100% operated working interest in the Syracuse Extension 1 lease subject to the royalties.
Extension 1 is a 320-acre property located in Cheyenne County, Colorado and includes 2 gas wells drilled in 1989-1990 which were never put into production. This property is adjacent to the Tumbleweed Midstream pipeline which is linked to a helium processing plant. Both wells contain methane and helium. At the time of drilling, one well had tested over 2,000 mcf per day and the other, over 3,000 mcf per day, of helium rich gas. These historical results have not been verified by PHC or any other independent party.
Jim Culver, VVC’s CEO stated that "This lease acquisition adds to the more than 15,000 acres of Syracuse and Monarch leases in the PHC portfolio. It represents the Company’s opportunistic strategy of acquiring selective potential helium properties which we believe can be brought into production quickly and inexpensively and can be managed by the local team managing the Syracuse field. This property will be included in our Syracuse field development plans, with the current expectation of gas production to begin from Syracuse Extension 1 in Q4 of 2021."
