Global Helium Corp. (OTC:HECOF) Stock Falls 15%: Here is Why

The helium market has grown steadily in recent years, and investors are increasingly interested in the stocks of listed companies in the sector. One of the stocks that could well be worth tracking in light of the latest developments is Global Helium Corp. (OTC:HECOF). On Wednesday, the company came into focus after it provided a key operation update with regards to the 10-08-012-04W4/00 exploratory well. The well is situated on the farm-in-land block that belongs to Perpetual Energy Inc. and along the Manyberries helium trend close to the Medicine Hat region in Southeast Alberta.

The company announced yesterday that the well had been production tested after the remediation and stimulation to take care of the wellbore damage caused during the initial drilling activities. The test had been conducted at around 4.1 million cubic feet a day with 3500 kilopascal flowing tubing pressure that originated at the Beaverhill Lake formation. The extended test went on for four days. The company also stated that a number of gas samples originating from the well had been analyzed. Global Helium Corp. also confirmed that the helium concentrations in the Beaverhill Lake area had been in the 0.6% to 0.68% range.

The Chief Executive Officer of Global Helium Corp., Jesse Griffith, spoke about the development yesterday, and it could be a good move to take a closer look into it. Griffith noted that everyone at the company was highly pleased at the development and went on to note that the well was the second commercially viable opportunity for Global Helium Corp. as a company.

Global Helium Corp. is one of the biggest helium exploration and development companies in Canada and is involved with the production, acquisition, development, and exploration of helium. It managed to create a unique position through a novel farm-in agreement with Perpetual Energy Inc., a veteran of the helium exploration industry.


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