<<Correction Issued>>
April 24, 2023 – Helium Evolution Incorporated (TSXV:HEVI) (“HEVI” or the “Company“), announced that it has filed corrected annual financial statements (the “Corrected Financial Report”) for its annual period ended December 31, 2022 (the “Financial Period”) to correct certain typographical errors identified in Note 12 (Income Taxes).
It was determined by HEVI’s management and agreed to by its auditors KPMG LLP, that the original financial statements for the Financial Period contained typographical errors. The Corrected Financial Report is available under the Company’s profile on SEDAR at www.sedar.com. The Corrected Financial Report replaces and supersedes the respective previously filed financial statements for the Financial Period filed earlier today. Such previously filed original financial statements should be disregarded.
HELIUM EVOLUTION ANNOUNCES FILING OF 2022 ANNUAL FINANCIAL AND OPERATING RESULTS
Strong balance sheet, upcoming NAH drilling program and continued internal technical work drive HEVI closer to the ultimate goal of helium production
Calgary, Alberta, April 24, 2023 – Helium Evolution Incorporated (TSXV:HEVI) (“HEVI” or the “Company“), a Canadian-based helium exploration and production company focused on developing assets in southern Saskatchewan, today announced the filing of the Company’s audited financial results for the year ended December 31, 2022, along with a corporate update on activities that have occurred subsequent to year end.
For complete details of the annual audited financial statements and the associated management’s discussion and analysis, please refer to the Company’s filing on SEDAR (www.sedar.com).
Three Months and Year Ended December 31, 2022 Highlights:
| Three months ended | |||||
| Tabular amounts in thousands of Canadian Dollars, except share and per share amounts | December 31, 2022 | December 31, 2021 |
Year ended December 31, 2022 |
Period ended December 31, 20212 | |
| Financial | |||||
| Net loss | 520 | 389 | 7,363 | 1,412 | |
| Net loss per share, basic and diluted | 0.01 | 0.01 | 0.09 | 0.06 | |
| Cash | 9,128 | 171 | 9,128 | 171 | |
| Working capital | 10,236 | 511 | 10,236 | 320 | |
| Total assets | 13,022 | 13,666 | 13,022 | 13,666 | |
| Total liabilities | 226 | 12,530 | 226 | 12,530 | |
| Weighted average shares outstanding basic and diluted1 | 96,033,974 | 34,184,280 | 78,397,100 | 25,495,726 | |
1 The weighted average number of common shares outstanding is not increased for outstanding stock options and warrants when the effect is anti-dilutive.
2 From the period of incorporation on January 14, 2021 to December 31, 2021
During the final quarter of 2022, HEVI continued to execute on its focused strategy of developing the Company’s 5.5 million acres of helium rights in southern Saskatchewan and advancing its ultimate goal of producing and selling helium, generating cash flow and driving positive returns for shareholders.
North American Helium (“NAH”), a strategic investor in HEVI and the Company’s counter-party on various farmout and seismic agreements, drilled two farmout wells in the fourth quarter. The first of these wells (Test Well #1) was cased for further evaluation and the second well (Test Well #2) was abandoned. Given helium development in Saskatchewan is still in its relative infancy, HEVI’s near and longer-term outlook for the potential of its vast asset base remains very positive.
To help drive continued development, further enhance the Company’s understanding of the play and facilitate the identification of future potential drilling targets, HEVI’s technical team is continuing to undertake extensive geological and geophysical modelling of its existing seismic trade database, while also seeking to add incremental seismic. Subsequent to December 31, 2022, HEVI successfully bolstered the Company’s seismic library by obtaining approximately 600km of existing 2D seismic lines.
The Company has also been successful in retaining ongoing financial flexibility, demonstrated by a positive working capital position of $10.2 million at the end of the year. Aligning with NAH through various farmout arrangements has afforded HEVI the ability to conserve capital while also having the right to participate in future development wells drilled on the Company lands, providing a truly differentiated position to support the Company’s future.
Outlook
HEVI continues to be excited about the prospect of a commercial helium development on its expansive land base, and looks forward to benefitting from the continued exploration and development of the Company’s asset base by NAH. There are numerous operational milestones in the near term for HEVI, including test well #3 at 12-11-05-10W3 (“Test Well #3”), which is expected to be spud by NAH on or before July 14, 2023. NAH is responsible for 100% of the drilling costs for Test Well #3 while HEVI retains a 20% working interest in the well, as per the enhanced farm-out agreement (the “Amended Farmout Agreement”) with NAH as announced on October 21, 2022. In addition, there are several other key milestones under the Amended Farmout Agreement which are expected to take place throughout the second and third quarters of 2023, including:
- NAH must select drilling locations for two additional test wells at Fox and Gravelbourg (“Test Well #4” and “Test Well #5”) by June 30, 2023 as per the terms in the Amended Farmout Agreement; and
- NAH has the option to select up to two additional well locations by June 30, 2023 and one additional well location by July 31, 2023 under two separate seismic agreements (collectively, the “Seismic Agreements”) also announced on October 21, 2022. Upon confirmation of these location selections, the remaining 5.5 million acres of HEVI’s land will be fully released, allowing the Company to pursue its own development program.
As the Company continues to advance its objectives and meet milestones, HEVI intends to provide ongoing updates to shareholders via news releases and to engage with existing and future potential shareholders through market engagement, its social media platforms and through conference attendance.
Stay Connected to Helium Evolution
Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to visit the Company’s website, which includes an updated corporate presentation, and are invited to follow the Company on LinkedIn and Twitter for ongoing corporate updates and helium industry information. Helium Evolution also provides an extensive, commissioned ‘deep-dive’ research report prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers. In addition to recent media articles, HEVI maintains a profile on the Investing News Network platform, where further information, editorial pieces and industry reviews are available.
About Helium Evolution Incorporated
Helium Evolution is a Canadian-based helium exploration and production company holding the largest helium land rights position in North America among publicly-traded companies, focused on developing assets in southern Saskatchewan. The Company has over five million acres of land under permit near proven discoveries of economic helium concentrations which will support scaling the exploration and development efforts across its land base. HEVI’s management and board are executing a differentiated strategy to become a leading supplier of sustainably-produced helium for the growing global helium market, offering a compelling opportunity for investors.
For further information, please contact:
| Greg Robb, President & CEO
Kristi Kunec, CFO |
Phone: 1-587-330-2459
Email: info@heliumevolution.ca Web: https://www.heliumevolution.ca/ |
| Cindy Gray, Investor Relations | info@5qir.com | 1-403-705-5076 |
Statement Regarding Forward-Looking Information
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this document include statements regarding the Company’s expectations regarding the Company’s and NAH’s exploration and drilling plans, the Company’s ability to identify future exploration and drilling targets, activities related to the Amended Farmout Agreement and Seismic Agreements, increasing shareholder value, the Company’s ability to preserve capital, spud date of Test Well #3 and the drilling timeline for any future NAH drills, the timeline for the selection of Test Well #4, Test Well #5 and locations under the Seismic Agreements, timing of ongoing updates to shareholders, participation in future NAH wells, success of NAH wells and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: NAH may be unsuccessful in drilling commercially productive wells, NAH may defer the drilling of the Test Well #3 and or the selection and drilling of Test Well #4, Test Well #5, any wells under the Seismic Agreements and subsequent wells; the Company may choose to defer, accelerate or abandon its drilling plans; new laws or regulations and/or unforeseen events could adversely affect the Company’s business and results of operations; stock markets have experienced volatility that often has been unrelated to the performance of companies and such volatility may adversely affect the price of the Company’s securities regardless of its operating performance; risks generally associated with the exploration for and production of resources; the uncertainty of estimates and projections relating to expenses; constraint in the availability of services; commodity price and exchange rate fluctuations; the current COVID-19 pandemic; adverse weather or break-up conditions; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
