The Company Also Highlights the Results of an
Independent Resource Report with a $15
Million Evaluation of its Discovery Well
TSXV: HELI
CALGARY, AB, Aug. 24, 2021 /CNW/ - First Helium Inc.
("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC), a
helium exploration and development company with access to
significant exploration lands throughout Alberta, is pleased to announce that it has
recently completed a preliminary engineering study of the
infrastructure requirements to bring its Worsley discovery well (the "Worsley
Well") into production. Among other things, the study
provides First Helium with a range of modular and
operationally-flexible processing designs to bring the Worsley
Well, along with future expansion wells, on-stream.
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First Helium will use the results of this evaluation to finalize
its processing strategy, which currently includes multiple
alternatives ranging from fee-for-processing arrangements with
third parties, to a build-own-and-operate model, and hybrids
thereof. In association with this initiative, the Company will be
working to secure complementary off-take sales arrangements for its
helium gas production. From the project's kick off, First Helium
expects that the processing facility would be on-stream within nine
to 15 months, with timing largely dependent on the delivery of
specialized helium processing equipment.
Sproule Contingent Resource Report
In June, the Company received an independent report, focused
only on the Worsley Well, entitled "Evaluation of the Helium and
P&NG Contingent Resources of First Helium Inc. in the
Worsley Area of Canada (as of March 31,
2021)" (the "Resource Report") from Sproule
Associates Limited ("Sproule"). Sproule carried out its evaluation
in accordance with standards set out in the current Canadian Oil
and Gas Evaluation Handbook, as maintained by the Society of
Petroleum Evaluation Engineers (Calgary Chapter).
The contingent resources evaluation includes risked estimates of
helium volumes and related net present values of future net
revenues, estimated using various forecasted helium prices. In
summary, Sproule estimated the contingent resources associated with
First Helium's Worsley Well to have a net present value, discounted
at 10%, of approximately $15 million,
which equates to a foundational amount of approximately
$0.23 per basic outstanding common
share of the Company.
Management Commentary
"We are pleased to see the results of our initial discovery well
evaluation on the Worsley Property and to complete the preparatory
facility engineering required to commence commercial development of
the project," said Ed Bereznicki,
Chief Executive Officer of First Helium. "The independent
evaluation only considered a small portion of our over
32,000-hectare land base at Worsley, so we are excited to kick off our
3–well drilling program adjacent to the discovery well this fall,
and to complete our ongoing assessment of exploration and
development opportunities on the balance of our undeveloped land
base on the prolific Worsley Trend," added Mr. Bereznicki.
ABOUT FIRST HELIUM
First Helium is a helium exploration and development company
operating in the Worsley area,
north of Grande Prairie, in
Alberta, Canada. It was
founded to capitalize on the untapped potential of significant
helium resources in Western
Canada, in response to the shifting supply dynamics of the
global marketplace. Building on its successful discovery well,
which has production tested at over 1.3% of helium content over
three test periods, First Helium is working to develop its land
base of over 32,000 hectares along the highly prospective
Worsley helium trend. To establish
its operating base, First Helium seeks to market its helium gas
into the North American market via term off-take marketing
arrangements with established third-party distribution
companies.
For more information about the Company, please visit
www.firsthelium.com. The Company's final prospectus, financial
statements and management's discussion and analysis, among other
documents, are all available on its profile page on SEDAR at
www.sedar.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 listing of
the Common Shares on the Exchange, 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. 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.