The Acquired Assets are Expected to Accelerate
the Company's Commercial Development
CALGARY, AB, Nov. 15, 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
closed on two separate transactions (the "Acquisition") with
private, third-party companies (the "Vendors") to acquire an
aggregate of 40 kilometers of natural gas gathering pipeline assets
(the "Pipeline Assets"). The Acquisition was made for total
consideration of $25,000 in cash and
the assumption of future abandonment and reclamation liabilities of
up to $200,000. It is subject to
normal regulatory approvals.
The Acquisition also included 1,920 acres (1,690 net) of land
and two suspended wells, one of which is being evaluated for
re-activation based on 0.83% of helium content in historical
testing. The other well, which historically produced over 45
Bcf of raw gas at approximately 1% helium content, is tied into the
gathering system and is centrally located near a main, third party,
natural gas sales transmission line. It will provide the Company
with expanded operational flexibility in the site planning of its
helium processing facility.
"Closing of the Acquisition accelerates the commercial
development of our helium project at Worsley," said Ed
Bereznicki, President & Chief Executive Officer of First
Helium. "The opportunity to acquire this extensive infrastructure
package represents a tremendous savings in time and $6-8 million in upfront capital cost, as well as
provides us with the main gathering line that we require to support
the larger scale development across our entire Worsley asset base," added Mr. Bereznicki.
The Pipeline Assets, which extend across First Helium's
79,000-acre land base on the Worsley Trend, will be connected to
the Company's planned central helium processing facility and form
an integral component of its regional helium processing
infrastructure. The replacement cost to construct the Pipeline
Assets is estimated by First Helium's management team to be
approximately $6-8 million, and would
require many months of potential applications, consultations and
approvals. The regional system will enable First Helium to tie-in
its previously announced discovery well that has produced results
of 2mmcf/d of raw gas at over 1.3% of helium content over multiple,
long-duration test periods, along with future wells to be drilled
along the Worsley Trend.
Helium gas in the Worsley area
is produced along with natural gas and associated hydrocarbon
by-products. The Company intends to use a portion of the natural
gas produced from its wells to generate clean power for its
processing facility operations. Surplus natural gas will be
transported via the Pipeline Assets to sales lines and sold into
the market by First Helium. Similarly, the associated hydrocarbon
by-products will be separated, collected and sold. As the Company
re-activates the Pipeline Assets to develop its helium processing
infrastructure, any incremental revenue derived from the sale of
natural gas and other by-products will defray First Helium's
development costs.
ABOUT FIRST HELIUM
First Helium is a helium exploration and development company
operating in the Worsley area of
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 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.