Australian exploration and production company ECR Minerals is eyeing up the helium opportunity in the US as it looks to expand its operations.
The company has said it wants to focus on assets which have recognised or historic helium production and access to existing infrastructure.
This will include looking at sites that are already producing, are capable of near-term production, or are able to process helium.
Nick Tulloch, Chairman of ECR Minerals, said that the company has spent many months streamlining its business to improve efficiency.
“Although it is often tempting to think that the important part of developing a natural resources play is to find the resource, in fact we consider that it is production and sales that really define a company,” he said.
“There are many substantial resource deposits globally that are simply not economic – or possible – to extract and sell. This is particularly the case with helium. Despite its high value, it’s not a straightforward element to process or transport.”
Over the past year, ECR has implemented what it believes to be a low-cost operating structure and, should the company expand its operations, it is intended that this principle will be adhered to.
ECR has said it plans to seek some outsourcing and will work with partners to ensure that any funds committed would be spent on operations and nothing else.
Tulloch concluded, “As we examine the possible expansion of ECR, it is critical that we source assets that are capable of near-term production. Therefore, sales of helium and access to nearby infrastructure, both gathering lines, and a processing plant is a must.”
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