Altura becomes 100% owner of Pinta South helium project

Executive Summary

• Altura Energy Corp. has consolidated a 100% working interest in the Pinta South helium project in the Holbrook Basin, Arizona, by acquiring the remaining 50% interest from its partners.
• This acquisition doubles the company's total position in northeast Arizona to 10,600 net acres.
• The company plans to implement an artificial lift program on seven existing shallow helium wells in Q4 2025 to restore production, followed by new infill and exploratory drilling in 2026.

Key Details

• Interest Consolidation: Brooks Range Corp. (wholly owned subsidiary) acquired the outstanding 50% working interest from three partners, increasing the working interest in Pinta South to 100%.
• Total Position: The acquisition doubles the company's total position in northeast Arizona to 10,600 net acres.
• Existing Wells Status: The northern portion of the project contains seven shallow helium wells drilled in 2020.
  • Formation: Shinarump formation.
  • Depth: Average depth of 1,000 feet.
  • Initial Production: 150,000 to 200,000 cubic feet of raw gas per well.
  • Composition: Approximately 7% helium and 93% nitrogen.
  • Current State: Production ceased within months of initial sales line construction due to low pressure and liquid loading, which is common for shallow, low-pressure gas wells in the Holbrook basin.
• Artificial Lift Program:
  • Objective: Restore production from the seven existing wells.
  • Timeline: Work expected to commence in early Q4 2025, with production resumption expected prior to the end of 2025.
  • Strategy: Chairman Rob Johnston describes this as "lowest hanging of fruit" and notes the technique is inexpensive and routine.
• Future Drilling Plans (2026):
  • Infill Drilling: Shinarump infill drilling program north of Saddle Horse Draw.
  • Exploratory Play: Targeting the Coconino, Granite Wash, and Basement formations slightly south in Puerco Ridge.
  • Timeline: New drilling expected to begin in 2026.

Notable Quotes

• "We consider re-establishing production from previously producing wells to be the lowest hanging of fruit. What we are planning for these seven wells is relatively inexpensive and routinely done every day in hundreds of wells across the country. What is unusual, is that it was not done to the previously producing wells," says Rob Johnston, chairman of the board of directors.