IACX Energy Announces Gaseous Helium Sales From Its Proprietary, Small-Scale Processing...

IACX Energy Announces Gaseous Helium Sales From Its Proprietary, Small-Scale
Processing Unit Near Otis, Kansas

DALLAS, May 7 /PRNewswire/ -- Dallas-based midstream natural gas company, IACX
Energy, has commenced operations and sales on what is believed to be the
world's smallest, mobile, economically viable helium purification plant for
natural gas applications. The plant is located near the community of Otis,
Kansas (center of the state), and it is being operated in unison with three
IACX nitrogen rejection units (3 MMcf/d -of total inlet capacity).
Presently, the plant is polishing approximately 15 to 30Mcf/day of helium
which is then compressed to 2,800 psi and stored in high pressure tube
trailers for transport. Helium is sold on fixed, 'take-or-pay' contracts and
the stated BLM price for crude helium today is $62.25/Mcf.

Much of the natural gas produced in this part of Kansas is associated with
higher-than-average percentages of helium (1.5% to 2%) which is sourced from
deep, basement rock. Helium migrates through the various sedimentary strata
and is trapped in the same reservoirs as fossil derived oil and/or natural
gas. Throughout much of the 20th Century, natural gas from Kansas' massive
Hugoton field yielded the bulk of the world's helium supply. During the
earlier years of flush production, large processing facilities were utilized
to remove undesirable components from the raw gas (nitrogen, CO2, H2S, and
NGLs) for conventional pipeline sales as well as to remove and purify
associated helium gas; however, as these and other helium-laden natural gas
reserves continue their inevitable decline, large-scale facilities have become
(or are becoming) underutilized and increasingly inefficient. As a
consequence, many historical sales points for helium-rich gas are being closed
or curtailed by gas purchasers, and production of this rare and valuable gas
continues on a sharp downward trend.

Helium is a scarce, valuable and non-renewable gas. Most producers are
unaware of the value of helium that may be associated with their natural gas
volumes. Most are also surprised to learn that helium has a wide assortment
of important uses outside of the ubiquitous balloon market. Helium is an
indispensable component of many high tech applications including MRI machines,
semiconductor and fiber optic manufacturing, NASA's space program, etc.
Because of the combined realities of increasing demand and dwindling supplies,
the near-to-long term outlook for helium is that of alarming scarcity. As all
natural gas volumes in the world possess at least some level of associated
helium, the decision to capture, purify and sell this gas can be a simple
proposition for any company wishing to augment a project's cash flow.

Helium aside, more and more volumes of natural gas with higher-than-average
levels of other inert gases, such as nitrogen and CO2, are becoming stranded
or otherwise non-producible due to tightened sales line specifications.
Company CEO, Scott Sears, said "this Otis project represents a re-emergence of
recently shut-in gas volumes due to its nitrogen and helium content.
Typically, where there's helium in natural gas, the levels of associated
nitrogen are also higher, reducing the overall Btu value of the gas and making
it hard to sell into conventional sales lines. The Otis project is in its
infancy and IACX's nimble assets allows for the staging of a project's growth
by adding processing capacity only when it is needed. At Otis, we started
with one nitrogen unit, and now we have three, plus the helium plant. It's
best to grow a project on cash flow rather than on rosy expectations, and we
fully expect to outgrow all of these plants soon. Our intent is to start
small, though not to stay small." He also noted, "In these days of depressed
natural gas prices, added helium sales can really help a project's economics,
even with smaller volumes."

Aside from the Otis site, IACX has other operating applications in Texas,
Oklahoma, Nebraska and other locations in Kansas.

IACX is a Dallas, Texas based midstream natural gas company with field offices
in The Woodlands and Vernon, Texas. It designs, manufactures, deploys and
operates a proprietary fleet of gas separation assets that are small scale and
mobile. It has been capitalized with $20MM of equity capital from Haddington
Ventures, a Houston, Texas based private equity firm that focuses on the
midstream natural gas space. As of the date of this press release, IACX has
sixteen Units fabricated, holds no debt and remains aggressive and
opportunistic despite this period of depressed commodity prices.

For more information, please contact IACX at 972-960-3210 or visit its website
at www.iacx.com. Haddington Ventures can be reached at 713-532-7992 or visit
its website at www.hvllc.com.

Contact:
Scott Sears
IACX Energy
972 960 3210
Fax 972 960 3215
scottsears@iacx.com

www.iacx.com

SOURCE IACX Energy

Scott Sears of IACX Energy, +1-972-960-3210, fax, +1-972-960-3215,
scottsears@iacx.com