Worth 100x more than natural gas, the shale boom has taken on a new angle for exploration and production, with the critical level of helium supplies igniting a land rush that could determine the future of innovation itself. Mentioned in today’s commentary includes: Nvidia, IBM Corporation, Advanced Micro Devices, Intel Corporation, Taiwan Semiconductor Manufacturing Co.
The bulk of the world’s helium reserves are found in natural gas fields, which means that these fields now have double the potential–and double the interest from a national security perspective. Non-renewable and irreplaceable, helium is a critical element in hard drives, supercomputing, scientific research, space travel, and even medical MRIs.
For North America, which until recently enjoyed a stable supply of helium through the Federal HeliumReserve in Amarillo, Texas, there is an opportunity for anyone who can bring heliumback home.
Total Helium’s (TOH; TTLHF) the owner of a large helium play in the Kansas-Oklahoma panhandle has already started producing and enjoys a lucrative offtake agreement with one of the biggest members of the helium’s oligopoly”–the $160-billion behemoth, Linde Plc (LIN).
Total Helium’s wildcatter team jumped on the helium prospects in the largest U.S. gas field before others saw the potential supply squeeze looming. First to market may be the biggest beneficiary of a helium boom. Right now, our pick is Total Helium.
The Wildcatters Surprising Everyone from Africa to North America
So far, Total Helium (TOH; TTLHF) has amassed approximately 115,000 acres of leases on hand at Hugoton, the largest gas field in the United States. Half of that acreage is in the form of farmout agreements with Scout Energy, one of the largest producers in the basin.
Total Helium, backed by Craig Steinke of Reconnaissance Energy Africa (Recon Africa), was up for the challenge. This wildcatter has a reputation for going where no one else is paying attention and drumming up big discoveries and even bigger opportunities. It was small-cap Recon Africa, after all, that went on a super-sized expedition to Namibia and came back with the discovery of a working petroleum system in the giant Kavango Basin.
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