Exploration Well is Located Near the
Company's Successful Helium Discovery Well
TSXV: HELI FRA: 2MC
CALGARY, AB, Nov. 8, 2021 /CNW/ – First Helium Inc. ("First
Helium" or the "Company") (TSXV: HELI) (FRA: 2MC), a
helium exploration company with access to significant development
opportunities across western Canada, is pleased to announce that it has
commenced drilling its first exploratory well ("First Well")
on its core Worsley Property. The First Well is located near the
Company's discovery well ("Discovery Well"), which was
previously tested to contain 1.3% helium content based on a 10-day
flow period at 2 million cubic feet per day of raw gas. The raw gas
stream is comprised of approximately 65% natural gas which will be
produced with the helium gas, sold to market and also used to
generate power for facility operations. Assuming this raw gas
flow rate, approximately 22 barrels per day of associated
condensate will also be separated, collected and sold.
"We are pleased to start drilling our first new well on the
Worsley Property. It is the next step in building on the success of
First Helium's Discovery Well in order to begin producing and
delivering helium to market," said Ed
Bereznicki, President & CEO of First Helium. "In
addition, our detailed geological and geophysical evaluation of
First Helium's lands in the vicinity of the Discovery Well, the
First Well, and on the broader Worsley Trend, has yielded a number
of additional drill locations. We will incorporate the results from
the drilling and testing of the First Well to strategically pursue
these, and potentially new drill locations," added Mr.
Bereznicki.
As at March 31st, 2021, Sproule
Associates Ltd, independent engineers ("Sproule"), evaluated
the Discovery Well to contain Best Estimate Contingent Resources of
323 million cubic feet of helium gas and 12.6 billion cubic feet of
natural gas, both on an Unrisked basis. Based on these
volumes, Sproule calculated the Net Present Value of the Discovery
Well to be $15.2 million, using a
discount rate of 10%.
The Company expects that the First Well will be completed and
then shut-in, pending tie-in along with the Discovery Well for
production and processing to a new helium and natural gas
processing facility. The Company is in the process of soliciting
financing alternatives to fund the cost of the processing facility,
including the possibility of engaging a third-party custom
processor.
ABOUT FIRST HELIUM
First Helium is a helium exploration and development company
operating in the Worsley area of
Alberta, Canada. In response
to the shifting supply dynamics of the global helium marketplace,
First Helium was founded to capitalize on the untapped potential of
significant helium resources in Western
Canada. Building on its successful discovery well, which has
repeatedly production tested at over 1.3% of helium content and 65%
natural gas content, First Helium is working to develop its land
base of over 79,000 acres along the highly prospective Worsley helium trend, and 880,000 acres of
exploration option lands located in southeast Alberta, near existing helium operations. 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.