Canadian On-Line Investor Profiles Navasota Resources & Its Helium
Project
Navasota Resources Ltd NAV
Shares issued 5,111,378 Jul 16 close $2.55
Fri 16 Jul 99 Company Sponsored
navasota.com
CANADIAN ONLINE INVESTOR PROFILES NAVASOTA RESOURCES & ITS HELIUM PROJECT
EXPLORING FOR HELIUM & ASSOCIATED GASES IN SASKATCHEWAN
In May 1999, the company announced that it had secured exclusive rights for
three years to explore for helium and associated gases in east-central
Saskatchewan over more than 300 square miles of area. Helium has been
reported in anomalous concentrations of from 2.0 percent to 89.5 percent in
the area. Helium is usually a byproduct of natural gas production, economic
to recover when the helium content is as low as 0.3 percent. Worldwide
demand for helium is robust. At U.S. plants, pure helium presently sells
for more than 40 times the same volume equivalent of natural gas at the
wellhead in Canada.
Please check out our website at navasota.com or contact us
directly for further information on Navasota Resources including the latest
news releases outlining recent exciting developments involving the company.
A concise, detailed description of the helium industry and the company's
project is also presented on the website of the company.
Here are the contact points for Navasota Resources ...
Suite 207, 141 Victoria St.
Kamloops, B.C. V2C 1Z5
Phone: (250) 374 - 7377 or 1-888-988-9222
Fax: (250) 374 - 9296
E-Mail: mailto:info@navasota.com
Website: navasota.com
INDEPENDENT FEATURE OF THE CANADIAN ONLINE INVESTOR
Navasota Resources was recently featured in the June 14, 1999, issue of The
Canadian OnLine Investor, one of Canada's most respected independent stock
market newsletters. It should be noted that The Canadian OnLine Investor
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THE CANADIAN ONLINE INVESTOR (http://www.stockreviews.com)
HIGH IMPACT RESOURCE PLAY - STOCK SPOTLIGHT
NAVASOTA RESOURCES (NAV-VSE)
JUNE 14, 1999
Expectations soar as exploration progresses toward potential discovery of a
world class helium reserve
In early May 1999, after extensive work, Navasota Resources secured the
exclusive right from the Government of Saskatchewan for 3 years to explore
for helium and associated gases in east- central Saskatchewan. The permits
cover 303 sq. miles in an area, 90 kilometres east of Nipawin, where helium
gas has been reported in anomalous, exceptionally high concentrations
ranging from 2 percent to 89.5 percent.
Helium is an inert, non-toxic, non-flammable gas which, with the exception
of hydrogen, is the lightest of all gases. Given its unique properties,
helium is utilized in an increasing number of scientific and industrial
applications including cryogenics, welding, aerospace, and medical
equipment manufacturing. The worldwide demand for helium is robust and it
is currently priced at over 40 times the present wellhead price of an
equivalent volume of natural gas in Canada. Although the atmosphere
contains most of the world's helium, it is at such a small concentration
that the energy cost of recovering it is prohibitive. Economically
recoverable helium reserves are generally found in conjunction with natural
gas fields. Most of the helium-rich fields (more than 0.3 percent helium)
are found in the U.S. The helium in gas fields outside the U.S. is
typically at a concentration of less than 0.1 percent. The U.S. is
presently the largest producer and consumer of helium in the world. There
is no helium production in Canada at this time. The helium-rich gas fields
presently producing the bulk of the helium in the U.S. are expected to be
depleted in less than 25 years, after which the production cost and market
value of helium are both predicted to rise substantially.
In late June 1999, Navasota Resources plans to mobilize an exploration team
to the site to commence a detailed sampling program. Exploration efforts
will initially focus on the area where helium gas has been previously
reported in anomalous concentrations of up to 89.5 percent. Regional
geological and geophysical data indicate that the prospects will be at
depths less than 500 metres, typical of the reservoirs in the petroleum gas
producing areas of Saskatchewan. Test drilling may commence as early as the
fourth quarter of 1999 to determine the actual helium content, which other
gases are present, the pressures and flow rates. Once the drilling data is
studied, projections regarding the project's economic viability can be made
with a sufficient degree of reliability.
Navasota notes that the combination of the premium commodity pricing
attached to helium as compared to natural gas, and the strong likelihood of
the discovery of a helium resource at shallow depths, is expected to
potentially lead to highly impressive project economics. Management is
convinced that the conditions for establishing commercial production
represent more of an engineering and marketing challenge than an
exploration concern. This conclusion is based on the fact that helium
occurences are reported in a multitude of localities in the general
vicinity and area covering the company's exploration rights.
Navasota also holds a 100 percent interest in 34,421 acre Williston Basin
oil and gas property situated in Richland County, Montana. Limited
exploration of the project in 1997 identified four significant anomalies
which are considered to be prime drilling targets for future drilling.
Management is currently investigating the potential acquisition of
producing oil and gas properties in Western Canada in an effort to
diversify its asset base. It is expected that the positive cash flow
derived from such properties will recover the company's ongoing
administrative expenditures and fund a significant portion of the
exploration costs associated with its helium project.
A sustained program aimed at increasing investor awareness about the
special nature of the helium project and its potential world-class nature,
as well as the company's intention to expand its oil & gas activities, is
planned to be launched in late June 1999.
COMMENTARY
As speculation of a major discovery filters through the market, Navasota's
stock price should rise dramatically given the limited public float of the
company. The sustained investor awareness program along with positive
exploration results and developments should attract a growing shareholder
base for the company. It is anticipated that the stock's liquidity should
improve significantly over the next few months as the stock moves higher
and as an increasing number of traders and short-term investors begin to
move in and out of the stock. If the exploration program over the course of
the next year is successful in identifying a large, world-class economic
reserve of helium at the exceptionally high concentrations as previously
reported by limited sampling, it is reasonable to speculate that the market
value of the company could easily approach the $100 million mark or the $10
- $15 trading range per share. The company should attract growing interest
from both retail and institutional investors as it progresses towards its
goal of becoming the first significant commercial producer of helium in
Canada.
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