Production Averages 435 Barrels Per Day Over
First 8 Days
TSXV: HELI FRA:
2MC
CALGARY, AB, Feb. 1, 2022 /CNW/ – First Helium Inc. ("First
Helium" or the "Company") (TSXV: HELI) (FRA: 2MC), today
announced that the "1-30" light oil well commenced
production on January 23rd
and has delivered an average production rate of 435 barrels per day
("bbls/d") over its first eight days of operation. The 1-30 is
located on First Helium's 100-per-cent-owned, 79,000-acre
Worsley landholdings in
Northern Alberta, Canada.
"Cash flow from the 1-30 well will be deployed to accelerate the
exploration and development of helium gas across our 79,000 acre
Worsley Trend," said Ed Bereznicki,
President & CEO of First Helium. "We believe that our
shareholders will benefit greatly from First Helium's strengthened
financial position, as our team executes on the vision to become a
leading independent provider of helium gas in North America," added Mr. Bereznicki.
With construction of the 1-30 Oil Battery completed ahead of
schedule, oil production from the 1-30 well commenced on
January 23rd, 2022. First
Helium expects to realize field netbacks of CA$55.00 to CA$60.00
per barrel based on a current WTI price of US$80.00 to US$85.00 per barrel, which is anticipated to
provide ongoing operating cash flow for the Company beginning in
late February. The Company has entered into a rolling monthly
marketing arrangement with a large, credit-worthy counter-party to
market its oil production volumes. Assuming an average daily
production rate of 400 bbls/d, this represents initial net field
level cash flow of over CA$600,000 to the Company on a monthly
basis. Ongoing delivery of oil for sale began on January 25th and will continue on a
regularly scheduled basis. Revenue from January sales will be
received by the Company in late February.
In connection with its March year end, the Company will
commission an independent reserves evaluator to prepare an NI51-101
compliant reserve report for 1-30, including a net present value of
estimated oil reserves. Additionally, the Company will
continue to explore alternatives to maximize the value of 1-30 to
further the Company's helium exploration and development
strategy.
First Helium estimates that approximately 20% of the economic
Leduc wells along the Worsley
Trend have been light oil producers with the balance being natural
gas wells containing potentially economic helium. The association
of helium with hydrocarbons makes the Worsley area a unique and very attractive area
to explore for helium as the Company's exploration risk is
mitigated by the potential for additional revenue streams from oil
and natural gas. The Company recently announced plans to spud its
second exploration well, the 4-29, in mid-February, located
approximately 3 km southeast of its 15-25 helium discovery
well.
ABOUT FIRST HELIUM
Led by a core Senior Executive Team with extensive backgrounds
in Oil & Gas Exploration and Operations, Mining, Finance, and
Capital Markets, 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. Cash flow from its
successful 1-30 oil well at Worsley, beginning in February, 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.