VVC Exploration Expanding Helium Portfolio, Acquires Gas Property in Kansas
Canada’s VVC Exploration Corporation 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.
VVC purchased the new helium property, the Monarch Lease, from Monarch Petroleum. The Monarch Lease is a 1,720-acre property in the Byerly Field in Greely County, Kansas. It 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.
Monarch Petroleum retains a 3% royalty in the shallow well rights from surface to 3100 feet and a 50% non-operated working interest in the deep oil and gas rights below 3100 feet. Standard industry royalties of 12.5% are payable to arm's length landowners from the proceed of any production.
"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. 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.
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