VVC Announces First Helium Production and Sales, Marking Major Milestone for Company
TORONTO, June 16, 2021 (GLOBE NEWSWIRE) -- VVC Exploration Corporation ("VVC" or the "Company") (TSX-V:VVC) announced that its wholly owned subsidiary, Plateau Helium Corporation ("PHC"), has begun producing helium from five (5) wells located on two (2) of PHC’s properties. PHC is also already selling helium and methane into the market through the Ladder Creek Helium Processing Plant ("Ladder Creek Plant") via the Tumbleweed Midstream Pipeline system ("Tumbleweed Pipeline").
Four of PHC’s five wells were acquired from Monarch Petroleum and are located in the Byerly Gas Field, and are past producers. The fifth producing well is on an adjacent property previously added to the Syracuse Helium Project. These five wells are now producing and are connected to the Tumbleweed Pipeline which transports the gas to the Ladder Creek Plant for sale into the market.
"We are extremely excited that VVC has transitioned from an exploration and development company to a production, development and exploration company," VVC Chairman Terrence Martell commented. "Step one was the acquisition of PHC late last year. Today, we are announcing the completion of step two: bringing the first wells into production and selling helium and methane gases. The Company is now focused on step three: production expansion and profitability which we expect in the very near future. Generating revenue has always been our goal and we are pleased to add this new segment to our portfolio, while we continue to drive our copper exploration and development program in Mexico."
Other producing wells should be added later this quarter.
Producing Wells:
| a) | Syracuse Project Extension - Levens 2-31: PHC acquired the Levens 2-31 well and an additional 640 acres as an extension to its existing Syracuse Project leases in Hamilton County, Kansas. Originally drilled in 1987 by Dome Petroleum Corporation and completed in the Chase Group gas zone at 2,393 – 2,400 feet. After encountering mechanical problems, the well was shut-in in 2016 and has remained so until acquired by PHC. |
| Plateau moved a workover rig to the well and successfully resolved the problems with the well. The wellhead and meter were repaired and electric service was restored. Subsequently, the well was turned on and it immediately showed a casing pressure of 55 psi. The well was then opened to the Tumbleweed Pipeline which transports the helium rich gas to the Ladder Creek Helium plant. Note, that in 2008, based on a Shamrock Gas Analysis, the Levens 2-31 well produced gas with a 1.273% helium concentration. | |
| b) | Monarch Petroleum Wells: PHC acquired the Kansas assets of Monarch Petroleum Corporation in April 2021 (see News Release). These assets include six fully equipped wells located within the Byerly Field, in Greeley County, Kansas. These wells were shut-in by the previous operator because of low gas prices and have remained so until acquired by PHC. |
| PHC made minor repairs to four of the six wells and restored electric power service. These wells are also connected to the Tumbleweed Pipeline and have begun producing helium rich gas which is being delivered to the Ladder Creek Plant for processing. |
About VVC Exploration Corporation
VVC is a publicly traded Canadian-based mining exploration and development company listed on the TSX Venture Exchange (TSX-V:VVC). With the addition of PHC, VVC is also a Helium Producing company. VVC’s portfolio includes the Gloria Copper Project in Northern Mexico, precious metals properties also in Mexico and the Helium Projects owned by its wholly owned subsidiary, Plateau Helium Corporation ("PHC"). VVC is currently focused on the Helium Projects owned by PHC and will resume the development of Gloria Copper Project, as soon as Covid-19 restrictions are removed in Mexico. To learn more, visit our website at: http://vvcexpl.com.
On behalf of the Board of Directors
Michel J. Lafrance, Secretary-Treasurer
For further information, please contact:
| Patrick Fernet - (514) 631-2727 | OR | Trevor Burbank - (214) 641-1041 |
| pfernet@vvcexploration.com | trevor@vvcexpl.com |
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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FORWARD LOOKING STATEMENTS:
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others: now focused on production expansion and profitability in the very near future; Other producing wells should be added later this quarter; etc.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding acquisitions, production of helium, future development and growth, plans for and completion of projects by Company’s third-party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, without limitation, operational risks in the completion of Company’s anticipated projects, delays or changes in plans with respect to the development of Company’s anticipated projects by Company’s third-party relationships, risks related to Covid-19, risks affecting the ability to develop projects, risks in legislative changes in the applicable jurisdictions, risks in decrease of price of helium. No assurances can be given that the efforts by Company will be successful.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements, except as required by law.
Investors are cautioned that notwithstanding the expectations described herein, there can be no assurance that the plans described herein will be completed as proposed. Trading in the securities of VVC should be considered highly speculative. All forward-looking statements contained in this press release are expressly qualified in their entirety by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
