US Energy Corporation Acquires Acreage in Montana to Develop Helium Production at Kevin Dome

US Energy Corporation has acquired land in Montana as part of its strategy to produce helium within the Kevin Dome structure in Toole County.

The acquisition was finalized through an agreement with Wavetech Helium, a company that holds helium gas reserves in Colorado, Kansas, and Montana. The acquired land is believed to contain several prospective helium pay zones, primarily composed of inert nitrogen and carbon dioxide.

US Energy Corporation aims to begin drilling on the Wavetech asset in late July to early August 2024.

Ryan Smith, CEO of US Energy Corporation, commented, "The company believes that it has positioned itself to exploit what we anticipate will be a transformational resource and economic opportunity in an area with which we have a longstanding community footprint."

He added, "Simply put, we believe the Kevin Dome structure holds tremendous overall resource potential and is full-cycle helium economically competitive with any location in North America."

In addition to the Wavetech deal, US Energy Corporation has also signed a non-binding letter of intent with Synergy Offshore to acquire additional acreage.

The acreage involved in the deal forms a largely contiguous position across the Kevin Dome, covering approximately 164,000 net acres, and is believed to contain numerous prospective helium pay zones.

While announcing this development, US Energy Corporation addressed issues related to the helium supply chain, including global shipping disruptions and trade restrictions that affect international supply.

Earlier this month (June 2024), the Council of the European Union (EU) announced that its 14th sanctions package against Russia includes a ban on imports of Russian helium into the EU, effective September 26, 2024.

According to the European Commission, the new package responds to the needs and findings on the ground and addresses enforcement issues. It includes significant new energy-related measures targeting liquefied natural gas (LNG) and measures targeting vessels that support Russia’s war efforts.