Company Completes 3D Seismic Program at
Worsley
TSXV: HELI OTCQX:
FHELF FRA: 2MC
CALGARY,
AB, April 11, 2023 /CNW/ - First
Helium Inc. ("First Helium" or the "Company") (TSXV: HELI)
(OTCQX: FHELF) (FRA: 2MC), today announced that it has exercised an
option to acquire 640 acres of highly prospective helium
exploration lands at Dixonville
which are located nearby existing well penetrations with indicated
grades, or helium concentrations, ranging from 1.7% to 5.7%. The
option was exercised for nominal cost and is expected to close this
month. In addition, the Company has successfully completed the
field work phase of its proprietary 21 km2 (or
approximately 5,200 acres) 3D seismic data acquisition program over
recently acquired lands at its Worsley property.
"We are very excited to be acquiring land that became available
to us at East Worsley, in an area
that we have targeted for some time and believe to be highly
prospective given its proximity to existing well bores with
attractive helium grades," said Ed
Bereznicki, President & Chief Executive Officer of First
Helium. "We are also pleased to have successfully completed the
field portion of our 3D seismic acquisition program on our new
lands and begin evaluating them for priority helium and potentially
oil drilling targets," added Mr. Bereznicki.
Dixonville (East Worsley)
In 2020, First Helium identified a section of highly prospective
land at Dixonville located
contiguous to the Company's East
Worsley lands, secured an option to acquire the mineral
rights to the land, and recently exercised its option to acquire
those rights (the section). The land is adjacent to a well bore
with 1.7% helium content, and nearby a second well that previously
indicated 5.7% helium content. Based on prior evaluation work
in the area, First Helium's exploration team has identified a
priority drill location at Dixonville.
The Worsley area has been
drilled successfully for natural gas and oil by numerous operators
since the 1960's. The greater Worsley area includes over 2,500 wells which
provide an excellent database of historic well control data with
associated helium concentration indications. In the Leduc Formation
along the Worsley Trend, nitrogen and helium concentrations
increase from west to east. East of First Helium's 15-25 discovery
well, exploration for natural gas had been effectively deterred by
the high nitrogen content of the gas as nitrogen decreases heating
value and marketability of natural gas. Today, the ability to
install modular facilities to remove nitrogen and separate the
helium content for sale supports the project economics of drilling
these wells – the under-explored East
Worsley land base represents a tremendous opportunity for
the Company's helium exploration program.
Worsley
The new lands were acquired in August
2022 based on a thorough assessment of over 77 km of trade
2D seismic data across the land base. The 3D program focused on a
select area of the new lands located southeast of, and contiguous
to the Company's 15-25 helium well and two successful oil
discoveries. The program was designed to overlap with existing 3D
data to provide a consistent and complete visualization of the
regional geologic structure on the new lands. Preparatory field
work commenced in February and data acquisition was completed last
week, on-time, in accordance with environmental restrictions, and
within budget.
The Company will now process and evaluate the data, identify new
prospective drill locations, and prioritize them in conjunction
with the Company's existing, extensive inventory of drilling
locations on its Worsley property,
including the new location at Dixonville. It is expected that this work will
be completed by mid-May to coincide with the finalization of our
drilling plans for the next 12 months. As communicated previously,
the Company will be examining opportunities to accelerate the
development of its large inventory of drilling prospects.
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.
Building on its successful 15-25 helium discovery well 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 of helium across its Worsley land base. Cash flow from its
successful oil wells at Worsley
will help support First Helium's ongoing helium exploration and
development growth strategy.
First Helium holds over 60,000 acres along the highly
prospective Worsley Trend in Northern
Alberta, and 276,000 acres in the Southern Alberta Helium
Fairway, near existing helium production. In addition to continuing
its ongoing exploration and development drilling at Worsley, the Company has identified a number
of high impact helium exploration targets on the prospective
Southern Alberta Helium Fairway lands to set up a second core
exploration growth area for the Company.
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
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 timing and nature of
future activities on the 15-25, 14-23, and the water disposal well;
facilities development; seismic acquisition; the entering into of
off-take marketing arrangements; 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. Readers are cautioned that actual results may vary
materially from the forward-looking statements made in this news
release. Risks that could cause actual events or results to differ
materially from those projected in forward-looking statements
include, but are not limited to, risks associated with the oil and
gas industry; the ability of First Helium to fund the capital and
operating expenses necessary to achieve its business objectives;
the impact of the COVID-19 pandemic on the business and operations
of First Helium; the state of financial markets; increased costs
and physical risks relating to climate change; loss of key
employees and those risks described in the Final Prospectus dated
June 28, 2021. 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.