Follow Up to Successful 1-30 Discovery
Well
TSXV: HELI FRA:
2MC
CALGARY, AB, Feb. 15, 2022 /CNW/ - First Helium Inc.
("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC),
today announced the commencement of drilling its second exploration
well, the "4-29" target, which is located on First Helium's
100% owned, 79,000 acre Worsley landholdings in Northern Alberta, Canada. Targeting
multiple helium gas horizons and potential light oil accumulations,
drilling of the 4-29 well is a follow-up to the successful 1-30
discovery well, which has produced at an average rate of
approximately 400 barrels per day of light oil since coming
on-stream on January 23rd,
2022.
"Drilling of the 4-29 target highlights the potential to capture
value from multiple commodity streams across our highly prospective
79,000 acre Worsley Trend," said Ed
Bereznicki, President & CEO of First Helium. "Any
successful outcomes from testing targets like 4-29 and 1-30 should
significantly benefit our shareholders as our team executes on the
vision to become a leading independent provider of helium gas in
North America," added Mr.
Bereznicki.
The 4-29 well is located near the Company's 1-30 light oil
discovery well, and approximately 3 kilometers to the southeast 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 target presents as a structural high on
the Leduc Reef Complex.
Based on the Company's assessment of economic Leduc wells along the Worsley Trend,
approximately 20% have been light oil producers, and 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.
On January 31, 2022, the Company
granted 100,000 incentive stock options (the "Options") to a
consultant of the Company. The Options are exercisable at
$0.35 per common share and expire on
May 27, 2026. The Options are
subject to certain vesting provisions and were granted pursuant to
the Company's shareholder-approved stock option plan and are
subject to the policies of the TSX Venture Exchange and any
applicable regulatory hold periods.
ABOUT FIRST HELIUM
Led by a core Senior Executive Team with diverse and 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.