TORONTO, April 7, 2021 /CNW/ -- VVC Exploration
Corporation (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
Click here to view full release from April 6, 2021
View original
content:http://www.prnewswire.com/news-releases/vvc-exploration-continues-expansion-of-helium-portfolio-acquiring-new-gas-property-in-kansas-us-301264445.html
SOURCE VVC Exploration