PetroSun Announces U.S. Bureau of Land Management’s Crude Helium Auction Results
PHOENIX, Sept. 06, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE – PetroSun, Inc (OTC PINK: PSUD) announced today the results of the U.S. Bureau of Land Management (BLM) FY 2019 Crude Helium Auction held in Amarillo, Texas on August 31, 2018. The FY 2019 crude helium auction was the last auction by the BLM as the Federal Reserve of crude helium will reach the minimum level of 3 billion cubic feet that is mandated by legislation. Future sales to private industry will be discontinued and the remaining crude helium molecules will be reserved for Federal users until the BLM privatizes its helium assets.
A total of 210 million cubic feet of crude helium was auctioned off at an average price of $279.95 per thousand standard cubic feet (Mscf). This average price is $160.64 Mscf greater than the average price of $119.31 Mscf that resulted from the FY 2018 auction. This represents a 135% increase in average price. It should be noted that crude helium must be processed to commercial grade purity prior to availability to distributors and end-users, thereby increasing the final wholesale and retail market price.
PetroSun controls more than 300,000 acres in the Four Corners (Arizona, Utah, Colorado and New Mexico) that contain commercial quantities of helium with up to 9.3% helium in the gas stream by third party laboratory analysis. PetroSun and its affiliate Arizona Energy Partners are currently scheduling helium and oil development operations that will commence at the end of the monsoon season in the next few weeks.
During the past few months, PetroSun has been in extensive discussions with most of the major industrial gas companies regarding Liquid Helium Offtake Agreements. These discussions are continuing, but PetroSun does maintain the option to transport and distribute helium through its affiliate United Gas of North America. R. Gerald (Jerry) Bailey, PhD, PetroSun Executive Director and United Gas CEO, will spearhead the United Gas helium operations. Dr Bailey is a retired President of Exxon-Arabian Gulf and a frequent guest on national business news programs.
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