PetroSun is focused on maximizing the profitability of the business. Aggressive work program implementation combined with investment in production tools and strategic technologies and continuous cost management are key drivers behind the company's drive to generate superior returns and increase shareholder value.
PetroSun has devoted a significant amount of management focus towards helium exploration in the four corners region of the US Southwest.
As the company transitions to production we intend to leverage the vast amount of scientific data relating to geology, engineering and the sourcing and trapping of helium in these formations, and management experience accumulated over two decades, to fulfill our mission to profitably produce helium from our holdings.
The helium market reflects increasing demand and dwindling reserves. There are only a few US producers and flows from major foreign sources are characterized by frequent supply disruptions usually caused by underlying political instability.
PetroSun is well positioned to capitalize on these market conditions. It is significant to note that we have already benefited, having negotiated off-take agreements with global industrial gas companies for terms of up to ten years.
Extracting helium is considered viable at concentrations of 0.3% content. Previous testing of formations in our Holbrook prospects have indicated helium concentrations up to 8% and even 9.0% in some nitrogen streams.
In the Golden Eagle Paradox Basin, development wells in the ismay formation have indicated helium concentrations ranging from 1.5% to 3%. The Leadville formation, which we are now targeting, has produced helium with concentrations in the 7% range.
Our technology driven, vertically integrated business model will allow us to process and deliver molecules to end users, using our own equipment, at grades of 99.99% purity.
This allows for a substantially lower cost base, avoiding the necessity for third party contractors and expensive piping infrastructure, whilst simultaneously generating revenues at end-user prices.
San Judas (Mexico) zeolite clay reserves are projected to contain commercial concentrations of lithium as well as minerals that benefit the agricultural sector.
PetroSun plans to utilize patented technology to process the lithium to battery grade quality and negotiate off-take agreements for the processed lithium and zeolite clays.