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New Era Helium Corp’s Announces Helium Tolling and Crude Helium Purchase Agreements
November 9, 2023MIDLAND, Texas, Nov. 09, 2023 (GLOBE NEWSWIRE) -- NEH Midstream LLC (“NEH” or the “Company”), a wholly owned subsidiary of New Era Helium Corp. has finalized two new agreements which enable it to produce bulk liquid helium from its Pecos Slope Helium Plant and accelerate the start of helium sales. The Pecos Slope Plant, a 20,000 MCF/D natural gas processing and helium purification plant that will be located approximately 20 miles north of Roswell, New Mexico is expected to produce an estimated 2.7 million standard cubic feet (MMscf) of high purity crude helium, as well as 477,000 MCF of methane and 32,545 bbls of natural gas liquids per month beginning June 1, 2024.
In late September, the Company announced that it had finalized two long term take or pay agreements to sell 100% of the helium production from the Pecos Slope Plant, with 50% of the plant’s helium output to be sold to AirLife Gases USA, Inc. in the form of bulk liquid, and the remaining 50% sold to a leading multinational industrial gas distributor who will take delivery of high purity crude helium in gaseous form.
NEH has now finalized a long-term Helium Tolling Agreement (“Tolling Agreement”) with Keyes Helium Company, LLC (“KHC”) pursuant to which KHC will purify and liquefy high purity crude helium delivered to KHC’s helium liquefaction plant in Keyes, Oklahoma by NEH and fill 11,000 gallon helium containers for delivery to NEH’s customers. Bulk liquid helium can be delivered to industrial gas companies or end users located around the world.
The second new agreement is a Contract For Sale and Purchase of Crude Helium between NEH and Badger Midstream Energy, LP (“BME”), whereby NEH will purchase 400 – 700 thousand standard cubic feet (Mscf) of crude helium per month from BME via the Bureau of Land Management’s Crude Helium Pipeline and Storage System commencing January 1, 2024. This crude helium will be processed into bulk liquid helium pursuant to the Tolling Agreement for delivery to NEH’s customers. This agreement, combined with the Tolling Agreement, will enable NEH to commence the sale and delivery of bulk liquid helium in early Q2 of 2024.
New Era’s CEO, Will Gray stated, “New Era continues to execute and put the pieces in place to build a solid foundation for a profitable diversified helium business. The Tolling Agreement with Keyes Helium is very important for New Era because it enables us to access the global market for helium. We are equally excited about the crude helium purchase agreement with Badger Midstream Energy because it enables us to jump-start helium sales in early 2024 while we await completion of the Pecos Slope Plant later in the year.”
About NEH Midstream, LLC
NEH Midstream, LLC is a wholly owned subsidiary of New Era Helium Corp. that will own and operate the Pecos Slope Gas Plant and gathering system located in Chaves County, New Mexico.
About New Era Helium Corporation
New Era Helium Corp. is an exploration and production company that sources helium produced in association with the production of natural gas reserves in North America. The company currently owns and operates over 137,000 acres in Southeast New Mexico and has over 2.5 BCF of proved, probable, and possible helium reserves. More information can be found at www.newerahelium.com.
Cautionary Note Regarding Forward-Looking Statements
Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. The Company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will the Company and its affiliates be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.
For more information, please contact:
| E. Will Gray II, CEO [email protected] |
Investor Relations - US Jonathan Paterson [email protected] Tel: +1 (475) 477-9401 |