Cash Flow Deployed to Ongoing Helium
Exploration
TSXV: HELI FRA: 2MC
CALGARY, AB, March 2, 2022 /CNW/ – First Helium Inc.
("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC),
today announced first month's average daily production of
approximately 430 barrels per day ("bbls/d") of light oil from its
successful "1-30" discovery well which is located on First
Helium's 100% owned, 79,000 acre Worsley landholdings in
Northern Alberta, Canada. The 1-30
well was brought on-stream on January 23,
2022. The Company has received revenues of approximately CA$
280,000 for January oil production deliveries, and based on
expected February pricing, anticipates receiving approximately
CA$1,200,000 in late March for February's oil production.
"With strong production and cash flow from the 1-30 well, we
currently expect payout of less than 2 months for drilling and
completion," said Ed Bereznicki,
President & CEO of First Helium."Cash flow from the well will
be deployed to help support ongoing helium exploration activities
at our Worsley Property and our Southern Alberta Helium Fairway
exploration land, which is located near existing third-party helium
production and recently announced, promising helium exploration
results," added Mr. Bereznicki.
First Helium expects to realize field netbacks of CA$82 to CA$88
per barrel based on a current WTI price of US$85 to US$90 per
barrel, which is anticipated to provide strong, ongoing operating
cash flow for the Company. The 1-30 well is located near the
Company's new 4-29 exploration well, which commenced drilling in
mid-February, and approximately 3 kilometers to the southeast of
the 15-25 helium well on the core Worsley Property.
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 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; 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.