Company Expects to Confirm Drill-Ready Helium
Locations for the First Quarter of 2022
TSXV: HELI FRA: 2MC
CALGARY, AB, Nov. 29, 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 the
Company's technical team has completed its evaluation of
approximately 880,000 acres of prospective helium lands in
Southern Alberta (the
"Block") and elected to continue over 276,000 acres of land,
which includes over 176,000 acres of corresponding 3D seismic and
512 kilometres of 2D seismic (the "Select Lands"), for a
further period of two years. The Company is exercising its
option pursuant to a seismic review and option agreement (the
"Option Agreement") with a large landholder for total
consideration of $661,000, or
approximately $2.39 per acre, to be
funded from working capital.
Ed Bereznicki, President &
CEO of First Helium stated, "In just six months, First Helium's
technical team has evaluated over 880,000 acres of prospective land
and high-graded over 276,000 acres of it for further helium
exploration. Ready access to an extensive library of seismic data
near existing, proven helium production has significantly reduced
the costs and time normally associated with evaluating such a large
block of prospective land, cutting the cycle from years to
months."
Mr. Bereznicki added, "The ability for First Helium to access,
high-grade and secure 276,000 acres, nearly two-thirds of which is
covered by 3D seismic data, at such a competitive price and in an
area proximal to recent bar-setting helium prospective land sales,
is a significant achievement for the Company. First Helium
estimates that assembling the seismic package alone, logistics and
timing aside, on a secondary market basis, would cost well over
$3 million. First Helium sees
this project as an excellent opportunity to establish a second core
area for its ongoing helium exploration and development program at
an attractive cost."
The Company sees the prioritized acreage over the option Block
as being highly prospective for helium exploration based on the
evaluation of the existing 3D seismic programs. Multiple
potential drilling targets with four-way closure and substantial
structural relief throughout the Devonian and Cambrian sections
have been identified. Some of these structural features are similar
to those with helium production at both Knappen in southern
Alberta, as well as Cypress and
Battle Creek in southwestern Saskatchewan. As with production at Knappen,
prospective formations for helium include the Basal Cambrian
Sandstone and the Beaverhill Lake Formation.
First Helium expects to finalize a more detailed seismic and
geological evaluation and confirm drill locations for the first
quarter of 2022. Over the next two years, the Company will have the
right, but not the obligation to drill and earn selected leases on
the Select Lands and pay industry standard royalties, including
Alberta crown equivalent royalties
on helium.
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 276,000 acres of
select 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.