PetroSun Sells 75% Interest in Holbrook Basin Helium Project for $863M

PetroSun sells 75% working interest in its Central Holbrook Basin helium project to Exodus Energy and Pivot Point Energy. The project has an estimated gross valuation of $863 million and potential recoverable helium reserves of 3.453 billion cubic feet.

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Aqsa Younas Rana
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PetroSun Sells 75% Interest in Holbrook Basin Helium Project for $863M

PetroSun Sells 75% Interest in Holbrook Basin Helium Project for $863M

PetroSun Inc. (OTC PINK: PSUD) has announced the sale of a 75% working interest in its Central Holbrook Basin helium project in Arizona to Exodus Energy Inc. and Pivot Point Energy Inc. The project, covering 11,430.53 acres of ASLD leases, has an estimated gross valuation of $863 million and potential recoverable helium reserves of 3.453 billion cubic feet.

Why this matters: This deal highlights the growing importance of helium as a scarce and valuable resource, with significant implications for industries relying on it, such as technology and healthcare. The commercialization of helium reserves could have a substantial impact on the global supply chain and energylandscape.

Under the terms of the deal, Exodus Energy will acquire a 50% stake, while Pivot Point Energy will obtain a 25% interest. The adjacent Central Holbrook cluster boasts recoverable helium reserves of 15.467 billion cubic feet, with a lower case gross economic value of $3.86 billion, based on a market price of $250 per thousand cubic feet.

PetroSun CEO Gordon LeBlanc Jr. expressed his gratitude for the partnership, stating, "My primary purpose on returning to the Company a year ago was to bring PetroSun into revenue generating status. It has been a 30-year journey in the Holbrook Basin and I am grateful to now bring in partners that can cause the commercialization of the gas that would not burn on a July 4th more than two decades ago." PetroSun plans to provide regular operational updates over the next 90 days.

As part of the agreement, Exodus Energy has committed to acquiring and commissioning a helium processing plant, subject to flow testing and gas composition analysis of existing wellbores. Both Exodus Energy and Pivot Point Energy have also committed to drilling helium development wells during 2024 and beyond, contingent upon successful efforts.

PetroSun Inc. is a fully integrated energy and mining company focusing on lithium, zeolite clays, rare earth elements, mine tailings, helium, natural gas, and water processing through cutting-edge technologies. The company holds significant leasehold acreage prospective for helium exploration and production in the Holbrook Basin of Arizona and the Paradox Basin of Utah.

The sale of the majority working interest in the Central Holbrook Basin helium project marks a significant milestone for PetroSun, as it moves closer to commercializing its substantial helium reserves. With the expertise and resources of Exodus Energy and Pivot Point Energy, the project is well-positioned to capitalize on the growing global demand for helium.

Key Takeaways

  • PetroSun sells 75% interest in Central Holbrook Basin helium project to Exodus Energy and Pivot Point Energy.
  • Project has estimated gross valuation of $863 million and 3.453 billion cubic feet of recoverable helium reserves.
  • Deal highlights growing importance of helium as a scarce and valuable resource.
  • Exodus Energy and Pivot Point Energy to acquire and commission helium processing plant and drill development wells.
  • PetroSun moves closer to commercializing its substantial helium reserves with expertise and resources from partners.