TSXV: HELI FRA: 2MC
CALGARY, AB, Jan. 19, 2022 /CNW/ - First Helium Inc.
("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC),
today provided a summary highlighting the Company's achievements
during the past year and planned initiatives for the next 12
months.
"In 2021, First Helium achieved a number of significant
milestones which have substantially increased the Company's
underlying value and positioned us to become a leader in Canadian
helium exploration and development," said Ed Bereznicki, President & Chief Executive
Officer of First Helium. "2021 milestones included aggregate
capital raises of CAD$12 million;
listing on the TSX-Venture Exchange; drilling of the 1-30 light oil
discovery well at Worsley; and the
purchase of a significant portion of the critical infrastructure
needed to support the drilling and development of the Worsley helium project.
"Most recently, First Helium recorded its first revenue from the
sale of light oil, which was produced during flow-testing of the
1-30 discovery well. The Company is preparing to bring the 1-30
well on-stream in February concurrent with the recommencement of
exploration drilling of the highest priority helium gas targets at
Worsley," added Mr.
Bereznicki.
Plans for 2022
First Helium has planned several key activities for 2022,
including:
- Bringing the 1-30 well into full production in early February
to provide significant, recurring cash flow beginning in mid-Q1
2022;
- Drilling several new exploration well locations on the Worsley
Trend, including helium gas horizons with potential light oil
accumulations. The first well should be complete by the end of Q1
2022;
- Preparing to drill its first helium exploration well on the
Southern Alberta Helium Fairway prior to year-end;
- Commissioning an NI 51-101 compliant independent reserve report
for 1-30, including a net present value of estimated oil
reserves;
- Continuing to add strategic assets to advance its business
plan; and
- Completing arrangements for the helium gas processing facility
at Worsley (the "Processing
Facility").
This aggressive plan for First Helium will be supported, in
part, by cash flow generated by 1-30 with a goal to materially grow
shareholder value in 2022.
Review of 2021
Over the past year, First Helium's accomplishments began with a
successful private placement and subscription receipt financing
totaling approximately CAD$12 million
in aggregate. In addition, the Company successfully listed its
common shares for trading on the TSX Venture Exchange to provide
liquidity for its shareholders. It proceeded to successfully
deploy capital to its two helium exploration and development assets
at Worsley, and in Southern Alberta.
Worsley Helium Project
In 2021, First Helium focused its capital spending on the
development of its Worsley Helium Project. Worsley is the Company's flagship project,
centered around the 15-25 helium discovery well (the "15-25").
The Company successfully re-tested 15-25 at 1.3% helium content,
including a comprehensive gas analysis to refine the design of its
Processing Facility.
Sproule Associates Ltd. ("Sproule"), independent evaluator,
prepared a Contingent Resource Report of 15-25. Sproule evaluated
the NPV (10% discount) of 15-25 at over $15
million on a "best estimate" basis.
In order to develop and produce the helium along the Worsley
Trend, the Company began developing its infrastructure. It
acquired, at minimal cost, over 46 km of natural gas gathering
lines and approximately 3,700 net acres of undeveloped land, to
support the future development of helium gas across the Worsley
Trend.
In addition, the Company completed a Front-End Engineering
Design study for the Processing Facility to advance the project.
This included continued discussions with manufacturers, equipment
suppliers, custom processors, and potential helium off-take
partners in connection with the planned Processing Facility.
First Helium completed a 3D seismic survey covering the area
around 15-25. Further geologic evaluation of its land base across
the Worsley Trend identified numerous prospective drill
locations.
The first location resulted in the successful drilling of the
1-30 oil discovery well (the "1-30"). The 1-30 well successfully
tested at 419 barrels per day of light oil. The discovery is an
important proof of concept for the Company's understanding of the
Worsley Trend.
The discovery of 1-30 creates substantial value for First Helium
shareholders. To date, the 1-30 produced and delivered for sale,
over 1,100 barrels of light crude oil, realizing over $90,000 in sales revenue for the Company.
That cash flow will help the Company to drill aggressively in
2022.
Southern Alberta Helium Fairway
In addition to Worsley, First
Helium secured an exclusive option to evaluate over 880,000 acres
in the Southern Alberta Helium Fairway ('Fairway Lands") to
establish a second core area of helium exploration.
The Company's team evaluated over 930 km2 of 3D
seismic data and 530 km of 2D seismic data throughout the Fairway
Lands. That resulted in the Company securing 276,000 acres within
the Fairway Lands. Included in this package is 3D seismic data over
60% of the area, which will provide substantial cost savings and
expedite further exploration. The Company has identified immediate
drill locations for early 2022.
ABOUT FIRST HELIUM
Led by a core Senior Executive Team with extensive backgrounds
in Oil & Gas Exploration and Operations, Mining, Finance,
Capital Markets and public junior growth companies, First Helium
seeks to be one of the leading independent providers of helium gas
in North America.
Building on its successful 15-25 helium discovery well at the
Worsley project, the Company has
identified numerous follow-up drill locations and acquired an
expansive infrastructure system to facilitate future exploration
and development of helium across its Worsley land base. Future cash flow from
its successful 1-30 oil well at Worsley, anticipated to begin in Q1 2022, will
help support First Helium's ongoing helium exploration and
development growth strategy.
First Helium holds over 79,000 acres along the highly
prospective Worsley helium trend
in Northern Alberta, and 276,000
acres in the Southern Alberta Helium Fairway, near existing helium
operations. In addition to continuing its ongoing exploration
and development drilling at Worsley, the Company has identified a number
of high impact helium exploration targets on the prospective
Fairway Lands to set up a second core exploration growth area for
the Company.
For more information about the Company, please visit
www.firsthelium.com. The Company's final prospectus, financial
statements and management's discussion and analysis, among other
documents, are all available on its profile page on SEDAR at
www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Edward J. Bereznicki
President, CEO and Director
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX) accepts responsibility for the adequacy or accuracy of this
release.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This news release contains certain statements or disclosures
relating to First Helium that are based on the expectations of its
management as well as assumptions made by and information currently
available to First Helium which may constitute forward-looking
statements or information ("forward-looking statements") under
applicable securities laws. All such statements and disclosures,
other than those of historical fact, which address activities,
events, outcomes, results, or developments that First Helium
anticipates or expects may or will occur in the future (in whole or
in part) should be considered forward-looking statements. In some
cases, forward-looking statements can be identified by the use of
the words "expect", "will" and similar expressions. In particular,
but without limiting the foregoing, this news release contains
forward-looking statements pertaining to the timing and rate of
production of the 1-30 discovery well; the timing of the completion
of the construction and commissioning of an oil battery at 1-30;
anticipated cash flows; the entering into of off-take marketing
arrangements; the use of funds and the Company's strategy. The
forward-looking statements contained in this news release reflect
several material factors and expectations and assumptions of First
Helium including, without limitation: that First Helium will
continue to conduct its operations in a manner consistent with past
operations; the general continuance of current or, where
applicable, assumed industry conditions; availability of debt
and/or equity sources to fund First Helium's capital and operating
requirements as needed; and certain cost assumptions.
Forward-looking statements are based on estimates and opinions
of management at the date the statements are made and are subject
to risks, uncertainties and assumptions, including those set out in
the Final Prospectus dated June 28,
2021 and filed under the Company's profile on SEDAR at
www.sedar.com. Readers are cautioned that actual results may
vary materially from the forward-looking statements made in this
news release. Risks that could cause actual events or results to
differ materially from those projected in forward-looking
statements include, but are not limited to, risks associated with
the oil and gas industry; the ability of First Helium to fund the
capital and operating expenses necessary to achieve its business
objectives; the impact of the COVID-19 pandemic on the business and
operations of First Helium; the state of financial markets;
increased costs and physical risks relating to climate change; loss
of key employees and those risks described in the Final Prospectus
dated June 28, 2021. First
Helium does not undertake any obligation to update forward looking
statements, except as required by applicable securities laws.
Investors should not place undue reliance on forward-looking
statements.
SOURCE First Helium Inc.