First Helium Licenses Second of Two Wells Targeting Leduc Light Oil at Worsley
MWN-AI** Summary
First Helium Inc. has received the regulatory approval necessary to drill two critical wells targeting Leduc light oil in the Worsley area of Alberta. The company can now proceed with its high-impact exploration well, the 7-15 location, alongside a previously approved proven undeveloped well, the 7-30 location. The latter has an estimated reserve of 196,700 barrels of oil, as evaluated by Sproule Associates Limited. The preparation phase for drilling has begun, with construction for the 7-30 site already underway.
CEO Ed Bereznicki highlighted the strategic importance of these drilling projects, indicating that success could unlock immediate cash flow and substantially increase shareholder value. Given the scale of the seismic anomalies, particularly at the 7-15 site—approximately five times larger than the successful 1-30 pool—the potential for substantial hydrocarbon discovery is encouraging.
First Helium has also identified an additional ten drilling locations in the Leduc formation, leveraging its proprietary 3D seismic data. Any success from the current drilling program could significantly de-risk these sites. Moreover, these locations may also tap into historically productive shallower formations known for oil and helium-enriched gas, providing multiple avenues for resource extraction.
The company's past drilling achievements at the 1-30 and 4-29 wells, which collectively generated impressive cash flow and revenue, bolster its confidence in these new projects. As First Helium owns all the land in this promising area, it is committed to exploring strategic partnerships to enhance the development of its extensive asset base. This proactive approach reflects its goal of becoming a leading independent provider of helium gas in North America while advancing its oil exploration efforts.
MWN-AI** Analysis
First Helium Inc. (TSXV: HELI) has recently garnered attention with the approval for drilling two significant wells targeting light oil at its Worsley project in Alberta. The company’s prospective locations—the 7-15 high-impact exploration site and the PUD 7-30 location—hold promising reserves, estimated at 196,700 barrels combined, according to Sproule Associates Limited. With First Helium’s strategic commitment to cost-effective drilling and ancillary services, the operations hold potential for immediate cash flow and robust shareholder value, particularly if initial drilling results are favorable.
Investors should take note that the company's success in these wells could rapidly de-risk ten additional drilling sites identified via proprietary 3D seismic data. Historical data points to a strong correlation between seismic interpretations and recoverable hydrocarbons, supporting a bullish outlook. Successful extraction from these sites could even tap into additional, shallower formations that offer further economic opportunities.
First Helium's recent drilling initiatives are particularly noteworthy in a climate where geopolitical instability and production constraints have spiked oil prices. The company's operational footprint covers over 53,000 acres, predominately owned, which could serve as a strong advantage in scaling operations, enhancing cash flow, and improving overall profitability.
However, potential investors should remain cautious. The oil and gas industry is notorious for volatility, compounded by fluctuating prices and regulatory challenges that could influence operational timelines and costs. Investors are urged to closely monitor drilling outcomes and the company's capacity to secure necessary partnerships to expedite development.
In conclusion, First Helium appears to be positioned for growth, with substantial upside potential hinging on successful drilling outcomes at Worsley. Careful consideration of market conditions and operational developments will be essential for anyone looking to invest in this emerging player.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CALGARY, Alberta, Jan. 09, 2025 (GLOBE NEWSWIRE) -- First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced receipt of regulatory licensing approval to proceed with the drilling of its 7-15 high impact exploration location, along with its previously licensed proven undeveloped ("PUD") 7-30 location, which has been assigned proved plus probable undeveloped reserves of 196,700 barrels² by Sproule Associates Limited ("Sproule")¹, its independent evaluator. The Company is working to secure drilling and ancillary services to drill both wells in a sequential, cost-effective manner. In preparation, the Company has commenced construction of the 7-30 drilling location.
"With drilling license now in hand for the 7-15 location, we are moving ahead to secure the required services necessary to drill both our 7-30 PUD well along with our high impact Leduc anomaly, 7-15, which on seismic is approximately 5X the areal extent of our successful 1-30 light oil pool discovery," said Ed Bereznicki, President & CEO of First Helium. "With success, the combined oil potential from these two operations would provide immediate cash flow and meaningful near-term value for our shareholders. It would also set the stage to execute on ten additional, highly prospective lower risk drilling locations," added Mr. Bereznicki.
Follow Up Drilling Inventory – 10 Additional Targets Identified on Proprietary 3D Seismic
The Company has identified 10 additional primary Leduc locations using the same interpretation of its proprietary 3D seismic data that identified its 7-30 and the 7-15 targets (See Figure 1). Success in the current drilling program would immediately de-risk these locations for follow-up development.
Each of the 10 Leduc drilling locations also has the potential to encounter one or more of up to six additional shallower formations/zones which have been historically proven to produce oil, and helium-enriched natural gas along the Peace River Arch at Worsley. The Company would look to exploit those potentially economic zones from the same wellbore, and/or drill additional well(s) to accelerate the development of potential discoveries in such an "up hole" zone, once it had extracted all the hydrocarbons economically possible from a successful Leduc well.
Figure 1:
Worsley Project Inventory
https://www.globenewswire.com/NewsRoom/AttachmentNg/415989da-a4be-422b-aed1-034855a011eb
Based on historical successful drilling results from the 1-30 and 4-29 Leduc oil wells, which together have produced more than 113,000 barrels of light oil and generated more than $13 million in revenue and $8 million in cash flow, the Company has achieved a direct correlation between its Leduc seismic interpretation and the potential for economic quantities of producible hydrocarbons. Notably, this same seismic signature is seen across all additional drilling locations.
Given the large potential opportunity for scalable growth at Worsley, all on 100% owned lands, the Company will continue to explore strategic partnerships to accelerate development of its extensive asset base.
| Notes: | ||
| (1) | Prepared by Sproule Associates Limited ("Sproule"), independent qualified reserves evaluator, in accordance with COGE Handbook. | |
| (2) | Gross Proved plus Probable Undeveloped reserves, per Sproule, Evaluation of the P&NG Reserves of First Helium Inc. in the Beaton Area of Alberta (as of March 31, 2023). See First Helium's SEDAR+ profile at www.sedarplus.ca . |
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells 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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
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
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.
FAQ**
How will the successful drilling of the 7-high impact location enhance First Helium FHELF's growth strategy and contribute to shareholder value?
What are the potential risks and uncertainties associated with the upcoming drilling operations for First Helium FHELF, particularly regarding the anticipated cash flow from the 7-30 and 7-15 wells?
Can you elaborate on the proprietary seismic data that has identified the 10 additional drilling locations for First Helium FHELF, and how do these sites correlate with historical drilling success in the area?
What strategic partnerships is First Helium FHELF exploring to accelerate the development of its Worsley land base, and how might these partnerships impact the company's operational and financial goals?
**MWN-AI FAQ is based on asking OpenAI questions about First Helium (OTC: FHELF).
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