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  • First Helium (HELI) has drilled, completed and tested the company’s first exploration well on the Worsley Property (I-30)
  • First Helium is preparing to bring the 1-30 into production in early Q1 2022 at a daily production rate of approximately 400 bbl/d
  • Preparations are underway to put the well into production at a cost of approximately $500,000, with the first cash flow expected by the end of the first quarter of 2022
  • Cash flow from the well will be deployed to accelerate the exploration and development of helium gas over the company’s 79,000 acres of land along the Worsley Trend
  • Over the first half of 2022, the company will evaluate alternatives for monetizing the intrinsic asset value of 1-30
  • First Helium is a helium exploration and development company
  • First Helium Inc. (HELI) opened trading at C$0.27 per share

First Helium (HELI) has drilled, completed and tested the company’s first exploration well on the Worsley Property (I-30).

First Helium is preparing to bring the 1-30 into production in early Q1 2022 at a daily production rate of approximately 400 bbl/d.

Preparations are underway to put the well into production at a cost of approximately $500,000, with the first cash flow expected by the end of the first quarter of 2022.

Cash flow from the well will be deployed to accelerate the exploration and development of helium gas over the company’s 79,000 acres of land along the Worsley Trend as well as cover ongoing corporate G&A costs. Based on current pricing for light oil, and an estimated production rate of 400 bbl/d, First Helium estimates the payback of the well to be approximately six months.

Ed Bereznicki, President & CEO of First Helium commented on the news.

“We are extremely pleased with the performance of the 1-30 discovery well. Given current commodity pricing of approximately WTI US$65 to US$70 per barrel, and our estimated field netbacks of CA$45 to CA$50 per barrel, we expect the well to pay out in approximately six months.” Mr. Bereznicki added, “Based on the current implied production trading multiples for Canadian light oil producers, this well represents a significant potential increase in asset value for First Helium shareholders. Capturing the aggregate value of this exceptional exploration success, along with potential development locations for shareholders will enhance the company’s ability to deliver on its key strategic objective of exploring for and developing helium production in the Worsley Trend.”

David Safton, Vice President, Geoscience commented,

“While this drilling result confirms our geologic model over the prolific Worsley Trend and bolsters our confidence in our exploration strategy for the region, it also demonstrates that given the location of the Worsley Trend within the Western Canadian Sedimentary Basin, there is also a real probability of discovering reasonably large economic pools of light oil.”

Based on a further evaluation of these exploration results, First Helium will be confirming its drilling program at Worsley for 2022.

Over the first half of 2022, the company will evaluate alternatives for monetizing the intrinsic asset value of 1-30 to further its strategic helium exploration and development objectives.

First Helium is a helium exploration and development company operating in the Worsley area of Alberta, Canada. 

First Helium Inc. (HELI) opened trading at C$0.27 per share.

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