Apr 52 min
Updated: Apr 8
North American Helium is set to increase its contribution to US helium supply by establishing a new production base north of Gull Lake, southwest Saskatchewan, with the anticipation of raising its market share to 7%. The company, which initiated operations in 2013, is in the process of constructing two new facilities at Antelope Lake and near Cadillac, aiming to expand its total to nine. With a US$150mm credit facility secured for expansion and new drill site evaluations, the company expects the Cadillac expansion to complete by fall 2024 and Antelope to be operational by summer.
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North American Helium will start up a production base north of Gull Lake this year, the company announced In late March, stating that adding two new locations could boost its share of North American supply of the inert gas to seven per cent.
That facility, 50 kilometres due west from Swift Current at Antelope Lake, and an expansion near Cadillac, are currently under construction and would bring the helium explorer’s number of facilities to nine.
A company release on March 19 also states it has secured a $150-million credit facility to help complete the expansion and evaluate new drill targets.
The expansion at Cadillac, south of Swift Current, could be completed in the fall of 2024, with Antelope expected online in the summer.
It would be the furthest north for the private company that began operating in 2013 and has facilities at an area called Battle Creek, south of the Cypress Hills in Saskatchewan and Mankato.
“Antelope Lake is an exciting new play type for the company and has helium concentrations significantly higher than any other helium production currently on stream at our existing seven production facilities throughout southwest Saskatchewan,” stated president Marlon McDougall.
Helium is sought after for use in high-tech applications and manufacturing, and became the focus of intense niche exploration over recent years due to fear of shortages once the U.S. federal reserve was expended.
North American Helium chairman Nicholas Snyder said in the statement that his view is demand will increase as U.S. domestic computer chip manufacturing increases, while geo-political strife may affect supply from Russia and Qatar.
Trace amounts of helium can be extracted from raw natural gas production, but larger natural deposits result when the element forms deep underground and becomes trapped in non-porous dome formations as it naturally migrates upward.
The City of Medicine Hat embarked on a limited helium exploration program in 2018. It currently farms out two production wells located in Alberta to a private company.