VVC Exploration Continues Expansion of Helium Portfolio, Acquiring New Gas Property in Kansas, U.S.
TORONTO, April 7, 2021 - VVC Exploration Corp. (TSX-V:VVC) has announced the addition of a new helium property in its recently acquired, wholly owned subsidiary, Plateau Helium Corporation ("PHC"), a Wyoming corporation. The transaction bolsters VVC's ability to capitalize on the growing demand for helium, driven by increased global usage.
The new helium property, known as the Monarch Lease, was purchased from Monarch Petroleum ("MP"), with MP retaining a 3% royalty in the shallow well rights from surface to 3100 feet (the "Shallow Rights") and a 50% non-operated working interest in the deep oil and gas rights below 3100 feet (the "Deep Rights"). In addition to the 3% royalty, standard industry royalties of 12.5% are payable to arm's length land owners from the proceed of any production.
The Monarch Lease is a 1,720-acre property that is located in the Byerly Field in Greely County, Kansas and includes six formerly producing gas wells connected to the Tumbleweed Midstream pipeline. All wells produced both methane and helium. PHC expects existing wells to be fully operational within 60 days with only minor rework.
"This Monarch Lease acquisition is a tremendous success for the PHC as it represents the second phase of its expanding helium and gas portfolio," said Bill Kerrigan, President of PHC. "Combined with the Syracuse Helium Project, PHC's properties now cover almost 15,000 acres, which is sufficient to address the short-term goal of bringing existing wells into production."
The Byerly Field is near PHC's 13,000-acre flagship Syracuse Helium Project, known as the Syracuse Field (see News Release of January 27, 2021). Currently, PHC is reworking existing wells on the Syracuse Field and plans to drill new wells in Q2 of 2021.
PHC owns a 100% operated working interest in the Shallow Rights of Monarch Lease and a 50% operated working interest in Deep Rights, subject to royalties. In the deep zone, MP will be required to contribute 50% of any expenses toward developing those areas.
About VVC Exploration Corporation
VVC is a publicly traded Canadian exploration and mining company listed on the TSX Venture Exchange (TSX-V:VVC). 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"). Visit our website at: http://vvcexpl.com
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SOURCE VVC Exploration
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