Interview with Nick Tullock, CEO of Voyager Life

 

In this insightful interview, Nick Tullock, the CEO of Voyager Life, shares exciting updates about the company’s helium projects and plans following his recent site visit to Kansas. With promising well results and a strong operational framework, Nick discusses the future of helium production and its implications for investors.

Table of Contents

• How was your recent trip to Kansas?
• What are the highlights from your recent announcement?
• Can you elaborate on the sixth well at Fort Dodge?
• What factors make this result significant?
• How does well pressure impact production?
• What infrastructure do you have in place for production?
• Tell us more about the burning of methane during the site visit.
• What is the status of the other wells?
• When can we expect results from the Carter wells?
• What are the drilling opportunities in the Hugon field?
• Which well will you focus on first?
• What are the timelines for starting gas production?
• When can shareholders expect value generation?
• How does the infrastructure support your production goals?
• What is your relationship with Scout Energy?
• What are your closing thoughts for investors?
• FAQ: What should investors know about Voyager Life’s future?

How was your recent trip to Kansas?

It was a whirlwind trip, or maybe I should say a tornado trip, given we were in Kansas! I spent three days on site, looking at the various wells and opportunities we’ve got out there. It was an incredibly productive visit, allowing me to get a firsthand look at our operations and assess our progress.

What are the highlights from your recent announcement?

We put out an announcement this morning summarizing some of my findings and what we currently have in Kansas. One of the key highlights is that we now have six wells in Southwestern Kansas. This represents significant progress in our helium exploration and production efforts.

The announcement provides a comprehensive overview of our current operations and future prospects. It’s really exciting to see how our projects are developing, and I believe it gives our investors a clear picture of where we stand and where we’re headed in terms of helium production.

Can you elaborate on the sixth well at Fort Dodge?

The sixth well at Fort Dodge tested at 5.1% helium content, as announced on July 15, 2024. It’s absolutely terrific. The result is well beyond our expectations. We had high hopes for that particular well, but to get above 5% concentration is wonderful.

Even more significant is the pressure we have in the well. This is even better than the concentration itself. People often focus on the helium percentage, but the pressure is equally important for production potential.

What factors make this result significant?

It’s an excellent result because 0.3% is when helium production becomes economically viable, and we’re at 5.1%. This far exceeds the threshold for profitability. The combination of high concentration and good pressure makes this well particularly promising for our operations.

These factors together indicate that we have a potentially very productive well on our hands. It’s results like these that really validate our exploration strategy and boost our confidence in the potential of our Kansas assets.

How does well pressure impact production?

Well pressure is a critical factor in helium production. We have a well with a high level of pressure, which is extremely promising. What’s even more exciting is that this pressure could potentially increase further once we remove some of the water sitting above the gas.

This high pressure, combined with the excellent helium concentration, makes this a really exciting near-term prospect for achieving a very high level of helium production. We’ll be monitoring the pressure closely in the coming weeks and months to fully understand its potential.

What infrastructure do you have in place for production?

We’re fortunate to have great infrastructure in place around our well site. It’s conveniently located just about a five-minute drive outside of Dodge City. For those familiar with Western films, Dodge City is a name that might ring a bell – it’s a classic piece of old America and the Wild West.

In terms of production capabilities, we’ve got the ability to produce helium on-site. From there, we can truck the helium to a nearby access point. This allows us to efficiently sell it into Scout Energy’s network, providing us with a clear path to market for our helium production.

Tell us more about the burning of methane during the site visit.

That was at the Smith well, which is over in the main part of the Hugoton gas field. The Smith and Nelson wells are two wells we’ll be tying into the network, connecting to Scout’s gathering system. Before you can tie in a well, you need to vent it and depressurize it.

We thought we’d create a bit of a Hollywood-esque moment by burning off the methane. What you saw in the video was that methane being lit, and the size of the flame really proves the pressure. I don’t know how well the sound came across in the video, but on site, I was probably standing about 50 feet away. You’re getting the heat full in your face, you’re hearing the rush of the gas, and it sounds like a jet engine taking off.

This just proves that we’ve not only got methane, which is what we saw burning, but it’s the pressure that really counts. It’s that ability to bring the gas to surface. In the coming weeks, we’ll have that Smith well tied in. It will go into production, and we will literally be selling and earning revenue from what comes out of the ground.

What is the status of the other wells?

As mentioned in the highlights we released today, we have two further wells in the process of being tied into the same infrastructure. These are progressing well and will contribute to our production capacity once they’re online.

Additionally, we’ve got two further wells in the Hatcher North play that are undergoing assessment. These wells represent potential future production sites, and we’re carefully evaluating their capabilities to determine the best path forward.

When can we expect results from the Carter wells?

We’ll know more about the Carter wells in the coming weeks. These are two wells we call Carter 1 and Carter 2, located about a mile apart to the north of Garden City. This area represents relatively untapped potential in the Hugoton field.

The geography is quite new to me, but I’ve been orienting myself around Garden City, which is over in the western side of Kansas. While Smith, Nelson, and Pon wells are to the south, and the Roswell is further east towards Dodge, the Carter wells are exploring new ground in the north.

What are the drilling opportunities in the Hugon field?

The Hugoton field is one of the biggest and best-known gas fields in the world. It’s about 90 years old and extends through Kansas, Oklahoma, and Texas. Where we’re drilling in the north, what we call the North play, is an area that’s been tried and tested by many generations before us.

Most of the activity in the Hugoton field has been concentrated in other areas, which makes our exploration in the north particularly exciting. We’re tapping into relatively untouched potential, building on the rich history of this expansive gas field while exploring new opportunities.

Which well will you focus on first?

I think it’s very hard to move away from where you started. The Rost well with 5.1% helium, I mean, it’s a big flashing light. That’s the one that looks really exciting. They’re very accessible, with good pressure as well.

Smith and Nelson are both completed wells. They need to be tied in, so that’s the next near-term production use flow. But the focus of the company will be on Rost over the next couple of months as we bring that well into production. And you know, why wouldn’t we? With that pressure and that helium content, it’s the very obvious one to go for.

What are the timelines for starting gas production?

We’re in production already. We have a well, Paton, that is already in production. It’s a relatively small well, but it proves the concept. Smith and Nelson will come into production once they’re tied in.

Then Rost needs to be completed, and we will be purifying the helium on site. That’s another couple of months. So in terms of timelines and actually being into gas production, we’re looking at a couple of months for the new wells to come online and start contributing to our production capacity.

When can shareholders expect value generation?

Hopefully reasonably soon. We’re demonstrating that we’ve got geology that works, but most importantly, we’ve got infrastructure in place. All of our wells are within an hour’s drive of the JHW gas processing facility, owned by Scout Energy. According to them, this facility processes 5% of the world’s helium.

We have a facility that’s currently under capacity and looking for more production. What we can produce, we can send to JHawk. The pipelines exist, the facility exists, the infrastructure is in place. This is a very unusual natural resources play for me.

In the past, I’ve looked at opportunities quite literally in the middle of nowhere. While they may be great opportunities, you’ve got to get the resource out of the ground, process it, get it to market, and sell it. For us, that’s all on the plate already. The gathering system is there, the processing facility is there. We have a really good relationship with Scout. I met them at the facility, did a tour, and also met them again in Denver and Dallas where they’re based. There’s a good working relationship between us.

How does the infrastructure support your production goals?

The infrastructure we have in place is crucial for our production goals. We’re operating in a region where 5% of the world’s helium is being processed. This gives us a significant advantage in terms of getting our product to market efficiently.

The JHW gas processing facility, owned by Scout Energy, is a key part of our infrastructure. It’s currently under capacity and looking for more production, which aligns perfectly with our goals. We can send what we produce to JHawk, utilizing existing pipelines and facilities.

This setup is quite unique in the natural resources sector. Often, companies face challenges in extracting resources, processing them, and getting them to market. In our case, all of these elements are already in place. The gathering system and processing facility are there, ready for us to use. This infrastructure significantly reduces our operational challenges and potentially accelerates our path to production and revenue generation.

What is your relationship with Scout Energy?

We have a really good working relationship with Scout Energy. I met them at their facility, did a tour, and also met them again in Denver and Dallas where they’re based. There’s a good rapport between our companies.

As we continue to expand, we know we have a ready and willing taker of our production. This partnership is crucial for our operations and future growth.

What are your closing thoughts for investors?

It all sounds very exciting. We’re looking forward to continuing our journey and developing upcoming projects. The infrastructure and partnerships we have in place position us well for future success in helium production.

We appreciate the interest and support from our investors as we work towards realizing the full potential of our helium assets in Kansas.

FAQ: What should investors know about Voyager Life’s future?

Investors should be excited about Voyager Life’s future in helium production. We have six wells in Southwestern Kansas, with the Fort Dodge well testing at an impressive 5.1% helium content. This far exceeds the 0.3% threshold for economic viability.

Our infrastructure is robust, with the ability to produce helium on-site and transport it efficiently. We’re already in production with the Paton well, and more wells are coming online soon. The Smith and Nelson wells are being tied into the network, and we’re focusing on bringing the high-potential Rost well into production in the coming months.

We have a strong partnership with Scout Energy, giving us access to their JHW gas processing facility, which handles 5% of the world’s helium. This existing infrastructure significantly reduces operational challenges and potentially accelerates our path to revenue generation. With our geology proven and infrastructure in place, investors can expect to see value generation in the near future.