Royal Helium takes advantage of government credit program in Saskatchewan | New

The helium exploration firm today (26e June) said it has received approval from the Minister of Energy and Resources of the Government of Saskatchewan and the Saskatchewan Petroleum Innovation Incentive (SPII) program.

To help create a level playing field when it comes to the helium market, the Saskatchewan government introduced two industry incentive programs when it launched its helium action plan in November. (2021).

With Royal now benefiting from one of these, the company can receive up to $4.2 million in royalty tax credits based on eligible project costs incurred to date at Nazare. It is hoped that these credits will be received during the current quarter.

Beyond this, additional royalty tax credits will be claimed on an ongoing basis for eligible costs associated with expenditures such as future horizontal wells drilled at Nazare, construction of processing facilities and all other future programs. applicable.

Andrew Davidson, President and CEO of Royal Helium, said, “We are extremely pleased with the agility the Government of Saskatchewan has shown in quickly implementing its new energy action plan. helium and how quickly he was able to process and approve our first submission.

“A clear benefit to Royal now and in the future, this program provides Saskatchewan operators with a significant cost advantage over most jurisdictions in North America.”

“Any profits received or royalties saved by Royal from this program will be reinvested in the continued expansion of our helium production plans in Saskatchewan.”

Earlier this month (July 2022), gasworld met exclusively with Jim Reiter, Minister of Energy and Resources for the Government of Saskatchewan, to discuss Saskatchewan’s Helium Action Plan and the incentive programs offered under it.

In such an interview, Reiter explained, “Saskatchewan is already blessed with the resource, but the two incentive programs are another support mechanism for market players. SPII offers portable oil and gas royalty/freehold production tax credits for qualified innovation commercialization projects at a rate of 25% of eligible project costs. »

“The program targets a wide range of innovations deployed in all segments of Saskatchewan’s oil and gas or helium industry. As a deliverable of the Helium Action Plan, the incentive program was recently expanded to recognize innovative helium projects as eligible as well.

The full interview with Minister Reiter will be published in the August issue of gasAmerican world.