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First Helium Announces “1-30” Light Oil Discovery at Worsley

TSXV: HELI   FRA: 2MC

Significant Initial Production Revenue Anticipated in Q1/2022

CALGARY, AB, Dec. 7, 2021 /CNW/ – First Helium Inc. (“First Helium” or the “Company”) (TSXV:HELI) (FRA: 2MC), a helium exploration company with access to significant development opportunities across western Canada, today announced that it has drilled, completed and tested the Company’s first exploration well on the Company’s Worsley Property (the “1-30”).  Upon completion, the 1-30 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. 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.


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Preparations underway to put the well into production at a cost of approximately CA$500,000, with first cash flow expected by the end of the first quarter of 2022;
Oil production from the well will be transported by truck to select receipt terminals and marketed via third-party marketing agreements;
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; and
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.

Management Commentary

Ed Bereznicki, President & CEO of First Helium stated, “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, …

Full story available on Benzinga.com

Original Post: benzinga.com

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