Global Helium Corp. announced that it has signed a Farmin Agreement to immediately increase its landholdings in Southern Alberta by 17 contiguous sections (10,880 acres) to a total of 49 sections (31,360 acres), all in the Manyberries helium trend. The company has partnered with industry veteran, Perpetual Energy Inc. (“Perpetual”), and anticipates drilling at least two helium wells by the end of 2023 to earn the land.

Additionally, the Company has agreed on a 576 section (368,640 acre) joint venture with Perpetual in Southeastern Alberta along the Manyberries helium trend. The two companies will share seismic, geological expertise and industry knowledge while working together within the 576 section Area of Mutual Interest (“AMI”). Global will direct and control all operations within the AMI and any resulting acquisitions or operations will see Global maintain a 75% working interest, leaving Perpetual with the remaining 25%, on lands within the AMI.

The Company recently announced its foray into the Manyberries helium trend with a 32 section (20,480 acre) deal, driven by an existing well proven to produce helium at a concentration of 1.2%. This, combined with other successful and producing wells in the vicinity, make the Manyberries helium trend Southern Alberta's most sought-after helium development area. All of the land contemplated in the January 10, 2023 news release, the Farmin, and the AMI surround the proven helium well.

Global's team has geologically mapped the subsurface trends in Manyberries, which provided evidence of what is believed to be a vast collection of helium gas. Resultingly, Global has aggressively pursued the acquisition of helium rights in the area and, having now secured those rights, is planning on drilling as soon as possible, which could be as soon as second quarter of 2023, once drilling license applications are approved. To satisfy the terms of the Farmin, the company is required to drill an initial well (the “Test Well”) on one of Perpetual's 17 sections prior to September 30, 2023, in order to earn a 75% lease interest on 8 of those 17 sections.

Perpetual will retain a 25% working interest and collect a 7% Lessor Royalty. Global has an option to drill a second well (the “Option Well”) prior to December 1, 2023, to earn the additional 9 sections, under the same terms of the Test Well. The parties have also agreed to an AMI that spans 16 townships (576 sections, or 368,640 acres), encompassing the prospect area.

Once all earning under the Farmin is complete, Global will be the operator of the AMI and maintain a minimum 75% working interest on all new opportunities identified. The term of the AMI will expire on December 31, 2025, unless the parties mutually agree to a revised date. When drilling and earning is complete under both agreements later this year Global will have drilled two helium wells along the Manyberries trend area and Global would retain a 75% working interest in 49 gross sections of land on this trend with Perpetual holding the remaining 25%.