TSXV: HELI FRA: 2MC
Drilling of the "4-29" Well Planned for
Mid-February
Calgary, AB, Jan. 26, 2022 /CNW/ - First Helium Inc.
("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC),
today announced that it has received its license from the Alberta
Energy Regulator ("AER") to drill its second exploration
well, the "4-29", which is located on First Helium's 100%
owned, 79,000 acre Worsley landholdings in Northern Alberta, Canada. The Company expects
to begin drilling operations in mid-February, 2022.
"Identified by a comprehensive 3D seismic study, the "4-29" well
location at Worsley will be
drilled as a follow up to our successful 1-30 well, targeting
multiple helium gas horizons and potential oil accumulations," said
Ed Bereznicki, President & CEO
of First Helium. "Drilling 4-29 is an opportunity to build on the
strong results from the 15-25 and 1-30 discovery wells, which
collectively represent significant growth potential and underlying
asset value to First Helium shareholders."
The 4-29 well is located near the Company's 1-30 light oil
discovery well, and approximately 3 km SE of the 15-25 helium well
on the core Worsley Property. A geologic and seismic review of the
region suggests that like the 1-30 and 15-25, the 4-29 prospect
presents as a structural high on the Leduc Reef Complex.
The 1-30 light oil discovery well tested at approximately 419
barrels of 35 degree API light oil over 3 days and is expected to
be brought on-stream in early February at approximately 400 barrels
per day.
The 15-25 was most recently tested last month to contain 1.3%
helium content based on a 10-day flow period at 2 million cubic
feet per day of raw gas. The raw gas stream is comprised of
approximately 65% natural gas, which will be produced along with
the helium gas, sold to market and also used to generate power for
facility operations.
The 1-30 Leduc well was drilled
based on a detailed 3D seismic evaluation of the Worsley
Property. The results confirm the Company's geologic model
for the area. Based on the Company's assessment of economic
Leduc wells along the Worsley
Trend, approximately 20% have been light oil producers, the balance
have been natural gas producers containing potential economic
helium content. A detailed geological and geophysical
evaluation of the Company's lands in the vicinity of the 15-25
well, the 1-30 well, and along the broader Worsley Trend has
yielded additional compelling drill targets. First Helium
will incorporate the results from the drilling and testing of
the 4-29 well to strategically pursue new drilling locations across
the highly prospective, 90 km wide Worsley Trend.
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 Trend in Northern
Alberta, and 276,000 acres in the Southern Alberta Helium
Fairway, near existing helium production. 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 Southern Alberta Helium 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.
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.