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.
Figure 1: Worsley Project Inventory
Picture1
The vertical Leduc play provides a tremendous opportunity for potential growth of the Company’s oil production, all located on existing (100 per cent) Company held lands. Given the large potential opportunity of the Worsley project, the Company will continue to explore potential partnerships to accelerate the development of its rich asset base.
Notes: (1) Prepared by Sproule Associates Limited (“Sproule”), independent qualified reserves evaluator, in accordance with COGE Handbook. (2) Gross Proved plus Probable Undeveloped reserves, per Sproule, Evaluation of the P&NG Reserves of First Helium Inc. in the Beaton Area of Alberta (as of March 31, 2023). See First Helium’s SEDAR+ profile at www.sedarplus.ca.
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
First Helium Inc. Investor Relations Email: ir@firsthelium.com Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words “anticipate”, “plan”, “continue”, “expect”, “estimate”, “objective”, “may”, “will”, “project”, “should”, “predict”, “potential” and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company’s future operations. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
