Company Highlights Drill-Ready Location on
its Southern Alberta
Helium Lands
CALGARY,
AB, Feb. 8, 2023 /CNW/ - First Helium Inc.
("First Helium" or the "Company") (TSXV: HELI) (OTCQX: FHELF)
(FRA: 2MC), today announced that it has commenced work on its
proprietary 21 km2 (or approximately 5,200 acres) 3D
seismic data acquisition program over recently acquired lands at
its Worsley property. The program
will focus on a select area of the new lands which are located
southeast of, and contiguous to the Company's 15-25 helium well and
two successful oil discoveries.
"We are very pleased to begin our 3D seismic acquisition program
on the new lands which will enable the Company to evaluate several
high priority drilling targets for helium and potentially oil,"
said Ed Bereznicki, President &
Chief Executive Officer of First Helium. "Last year, First Helium's
exploration team utilized 3D seismic data to successfully identify
and drill its two oil wells and confirm its geologic model for the
area, which includes the 15-25 helium well – the data will be
invaluable in the ongoing development of our Worsley asset," added Mr. Bereznicki.
Worsley
The new lands were acquired in August
2022 based on a thorough assessment of over 77 km of trade
2D seismic data across the land base. The location of the 3D
seismic program is restricted by seasonal environmental regulations
and includes some winter only access areas. Undertaking the program
now will enable the Company to "shoot" the program, evaluate the
data, and prioritize the Company's drilling locations (including
new ones generated by this 3D seismic program) over the next few
months.
Lethbridge
At its Lethbridge project in
Southern Alberta, First Helium is
among the largest landholders of highly prospective helium
exploration ground in a play which is continuing to garner more
attention from helium explorers. This is evidenced by recent
third-party exploration well tests and land farm-in announcements.
Based on publicly available records, production of helium in this
region has grown from nil to approximately 75 mcf/day over the past
3 years. Derived from an initial evaluation of over 880,000 acres
of option lands in the region, which included the review of over
230,000 acres of 3D seismic and 512 km of 2D seismic, First Helium
has focused on a select area of 276,000 acres where it has worked
up several drilling opportunities.
Specifically, First Helium has prepared a drill-ready location
designed to target the Beaverhill Lake and the Basal Cambrian
Sandstone, which it is planning to include in its 2023 drilling
program. This well is located in the Greater Knappen Area where
recently, another helium explorer successfully tested one of the
same target zones.
Corporate
Over the last quarter, the Company has reviewed helium gas
processing and sales alternatives for its 15-25 helium well at
Worsley which is backed by a
contingent resource report provided by independent evaluator
Sproule Associates Ltd. Based on its evaluation of alternatives,
First Helium is targeting an on-stream date of early 2024 for the
15-25 helium well and expects to provide further updates to
investors shortly on planned offtake arrangements.
In December, water disposal operations began at the Company's
Worsley Oil Battery. As a result, the Company has reduced operating
costs by approximately 50% per barrel and optimized oil production.
More details will be provided in the Company's quarterly reporting
later this month.
In addition to the new drill locations that may be identified
from the current 3D seismic program, the Company has also
identified numerous follow-up drill locations on Worsley lands from the previous 3D seismic
program.
Over the last two years the Company has also acquired an
expansive infrastructure system to facilitate future exploration
and development of helium across its focused land base,
which includes the 14-23 horizontal well for future completion and
testing to establish a potential regional helium development
play.
Updated Private Placement Information
Further to the Company's news release dated December 22, 2022, announcing closing of the
$2.4 million private placement, the
Company will be paying additional finders' fee totaling
$2,450 and 29,750 finder warrants.
With the inclusion of these additional finders' fees, the Company
will be paying in total $55,440 and
294,700 finders' warrants to various finders under the Placement,
exercisable for 24 months from the date of issuance at a price of
$0.30 per share.
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 60,000 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 nature of
future activities on the 15-25, 14-23, and the water disposal well;
facilities development; seismic acquisition; 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.