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First Helium Confirms Plans for Sequential Drilling of Two Oil Targets - Proven Undeveloped (“PUD”) Oil Location and Large Leduc Anomaly

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First Helium Inc.
First Helium Inc.

Company Accelerates Near-term Oil Production Potential Through Strategic Two-Well Program

CALGARY, Alberta, Nov. 27, 2024 (GLOBE NEWSWIRE) -- First Helium Inc. (“First Helium” or the “Company”) (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced plans to drill two complementary vertical Leduc oil targets at its Worsley property. The program will include drilling two strategic targets: the Company's proven undeveloped ("PUD") location at 7-30, which has been assigned proved plus probable undeveloped reserves of 196,700 barrels2 by Sproule Associates Limited ("Sproule")1, the Company's independent evaluator, and the recently identified 7-15 Leduc anomaly. The Company has initiated licensing for both locations and intends to optimize drilling costs by executing a two-well drilling program in succession.

"Given our focus on near-term cash flow opportunities, we are excited to be proceeding with a two-well program targeting proven undeveloped oil reserves at our 7-30 location and exploring the large Leduc anomaly, 7-15, which is approximately five times the areal extent of our successful 1-30 light oil pool discovery," said Ed Bereznicki, President & CEO of First Helium. "This strategic approach allows us to efficiently develop both a proven undeveloped oil opportunity and potentially make a significant discovery at a high-impact exploration oil target while maintaining operational efficiency," added Mr. Bereznicki.

7-15 Leduc Anomaly

The 7-15 well will target a large structure in the Leduc Formation that is on trend with and approximately 5X greater in areal extent than the Company’s initial 1-30 Leduc oil pool discovery. Upon completion, the 1-30 well flowed 419 barrels per day (“bbl/d”) of 35-degree API light oil from the Leduc Formation over a test period of 72 hours on a minimal drawdown. Given its premium light oil pricing, attractive vertical well drill costs and lower initial royalty rates, the 1-30 well paid out in less than 4 months.

7-30 PUD Location

The PUD 7-30 well directly offsets the previously discussed 1-30 well. The 7-30 location was identified using the same Seismic interpretation technique as used for the previously successfully drilled offset wells 1-30, and 4-29. Together, the successful 1-30 and 4-29 Leduc oil wells have produced 113,000 barrels of light oil and generated in excess of $13 million in revenue and $8 million in cash flow to date.

Worsley Leduc Formation – 12 Primary Targets

In addition to the 7-30 and the 7-15 location on the Leduc Anomaly, the Company has identified 10 further Leduc locations based on the same interpretation over existing proprietary 3D seismic (See Figure 1). Through the 1-30 and 4-29 drilling success, the company has achieved a direct correlation of its Leduc seismic interpretation. Continued success through drilling the 7-30 PUD well, and 7-15 will result in an immediate low risk 10 well scalable project.