Unlock stock picks and a broker-level newsfeed that powers Wall Street.
First Helium Reviewing Potential Follow Up Targets to Leduc Anomaly Drill

In This Article:

First Helium Inc.
First Helium Inc.

Company’s Focus is on Near-term Cash Flow from its Oil and Helium-Enriched Natural Gas Opportunities

CALGARY, Alberta, Nov. 20, 2024 (GLOBE NEWSWIRE) -- First Helium Inc. (“First Helium” or the “Company”) (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it is reviewing its extensive drilling inventory for follow up operations to its planned Leduc anomaly drill (“7-15”) targeting light oil. This program may include drilling its proven undeveloped1,3 location (“7-30”), a follow up well on the Leduc anomaly, or another one of 12 primary Leduc prospects identified on its proprietary 3D seismic at Worsley. Other operations include completion and testing of the existing 5-27 horizontal well, along with the re-entry and completion of an existing vertical well bore at east Worsley, both targeting helium-enriched natural gas in the Blue Ridge formation to establish a regional, repeatable play.

“With preparations underway to begin drilling the Leduc anomaly targeting light oil, we are prioritizing operations. The program focuses on opportunities to establish immediate cash flow while setting the stage for accelerated development of oil and helium-enriched natural gas at Worsley, executed alone or with larger partners,” said Ed Bereznicki, President & CEO of First Helium.

“De-risking the Leduc and Blue Ridge plays through select operations will help unlock significant potential value through follow up development drilling on the Company’s expansive 100% owned land base,” added Mr. Bereznicki.

All drill targets to be tested in the anticipated program:

  • Have the potential to encounter multiple productive horizons (pay zones) which can include natural gas with associated helium, natural gas liquids (“NGL’s”) and light oil;

  • Are located on trend and adjacent to past producing helium-enriched natural gas pools and light oil wells (See Figure 1); and

  • Can garner premium pricing, with netbacks ranging from 2 - 4 times the netbacks of conventional natural gas, when enriched with helium.

Worsley Area Opportunity

The Company’s Worsley Property encompasses more than 53,000 acres of 100% owned land along a trend of sizeable, past producing helium enriched natural gas pools (See Figure 1). This includes the 15-25 helium discovery well, with an independently evaluated resource of 323 million cubic feet of helium1,2, along with numerous multi-zone targets for helium, oil, NGL’s and natural gas. The complex, faulted geology of the prolific Peace River Arch is an ideal environment for the presence of high deliverability, helium rich gas reservoirs. Management estimates that past producing Leduc natural gas pools, located west of its 15-25 discovery, have produced over 1 billion cubic feet of associated helium that was not captured for use.