HELI to drill 2 helium targets in late Q2.... Plans to Capitalize on Attractive Outlook for Helium and Natural Gas Pricing
CALGARY, AB, May 17, 2022 /CNW/ - First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC), today announced that it plans to drill two prospective helium targets commencing late Q2 at its 100% owned, 79,000 acre Worsley Property in Alberta, Canada. The wells will target potential natural gas accumulations which are expected to contain commercial quantities of helium gas along with natural gas. Based on associated historic oil & gas drilling and operating data, helium content ranges from 0.5% to 1.9% across the Company's Worsley Property. The wells will be funded from cash on hand, accumulated from the Company's oil production operations.
"We are excited to be returning to the field to drill two select helium targets from our large inventory of potential helium and oil drill prospects identified on the Worsley Property. Strong cash flow from our successful oil operations will help fund the summer drilling program," said Ed Bereznicki, President & CEO of First Helium. "With attractive near to mid-term helium and natural gas pricing indications, we are focusing our efforts on adding additional helium volumes to our successful 15-25 helium discovery well and plan to begin producing as soon as possible," added Mr. Bereznicki.
The Company is finalizing necessary preparations to begin drilling in late June or early July, dependent on satisfactory weather-related field conditions. As with the Company's 15-25 helium discovery well, which includes associated volumes of natural gas and natural gas liquids, First Helium intends to market associated surplus hydrocarbon volumes, capitalizing on the current robust outlook for natural gas and liquids pricing, to generate cash flow in support of further growth. In addition, over the next few months, the Company will be providing an update on bringing the 15-25 helium well into production.
First Helium's senior exploration team selected the well locations based on a thorough geological and engineering evaluation of all prospective helium bearing horizons, 3D and 2D seismic, and the incorporation of information from the Company's recent exploration successes. First Helium's 79,000 acres along the Worsley Trend is highly prospective for both helium and natural gas. Historical exploration and development drilling on the trend has encountered rich helium concentrations ranging from 0.5% to 1.9% in a number of formations. The Worsley area possesses a number of key factors making it very attractive for helium exploration: proximity to the Precambrian basement, which is the source of helium, structural and stratigraphic traps in the host sedimentary rocks, and high-pressure and high-deliverability gas reservoirs.
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 oil wells 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
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