LONDON (Alliance News) - Highlands Natural Resources PLC on Wednesday said helium's uses extend "well beyond" party balloons, calling the gas an "essential feedstock for numerous industrial, medical, scientific and commercial applications".
Helium is used in nuclear power generation, magnetic resonance imaging, industrial fabrication and welding, fundamental sciences and research, fiber optics, space and defence applications, semiconductor manufacturing, Highlands said in an announcement that the company has acquired exploration licences covering 59,034 acres in Custer, Carter and Fallon Counties, Montana. The company paid USD91,050 in cash.
Significantly, Highlands said, helium currently has no substitute in cryogenic applications requiring temperatures below -220 degrees Celsius.
Historic gas analysis reveals that the gas contains elevated concentrations of helium (0.36%), according to Highlands, which said the concentrations are "similar" to the US Hugoton helium field, the largest natural accumulation of helium in the US.
The company said it believes that a significant volume of gas, containing helium, could exist in this region. If so, that would represent a significant helium resource in North America, Highlands said.
Further investigations are required, Highlands said. The company has commissioned RPS Knowledge Reservoir to prepare a competent person's report.
"This land was acquired at extremely low cost and fits well with our strategy to take advantage of the rising price of helium. Helium is an essential component of the modern economy, and Highlands believes that there is potentially significant value in securing helium resources in advance of expected global shortages over the coming years," Chief Executive Officer Robert Price said in a statement.
To support helium project development, Highlands said that Ben Reinoehl has joined the company's advisory board. Highlands said that Reinoehl brings 40 years of experience from Air Products & Chemicals Inc, where he was responsible for the worldwide helium and hydrogen product lines and the development of new sources of these gasses.
"The addition of Ben Reinoehl to our growing team provides significant institutional knowledge relevant to the development and commercialisation of acquired helium assets, and will support our helium project going forward," said Price.
Shares in Highlands were up 5.2% at 71.28 pence Wednesday morning in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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