First Helium Advances Drilling Projects for Oil Production
CALGARY, Alberta -- First Helium Inc. (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) has recently gained regulatory approval for two significant drilling projects aimed at tapping into the promising light oil reserves located at Worsley. The company is gearing up for the drilling of its 7-15 exploration well, alongside previously licensed proven undeveloped well, the 7-30, which has been associated with attractive undeveloped reserves estimated at approximately 196,700 barrels by Sproule Associates Limited, an independent evaluator.
Strategic Moves for Efficient Drilling Operations
First Helium is currently in the process of securing the necessary drilling and related services to ensure both wells are drilled in a cost-effective and efficient manner. In anticipation of the drilling process, construction has already started at the 7-30 location, marking an important step towards contributing to the company’s operational capabilities in the area.
Ed Bereznicki, President & CEO, expressed confidence in the future potential, stating, "With our drilling license secured for the high-impact 7-15 location, we are poised to move forward with acquiring the essential services for both critical wells. Success in these projects would not only generate immediate cash flow but would also enhance shareholder value significantly. Furthermore, it paves the way for the development of ten additional, lower-risk drilling locations that have shown great promise.”
Exploration and Future Drilling Potential
The company's projections are promising, as they have identified ten primary drilling targets in the Leduc area using advanced interpretations of their proprietary 3D seismic data. Success in the current drilling program is expected to mitigate the risks associated with these identified locations, allowing for substantial follow-up development.
Each of these identified drilling sites has the potential to tap into multiple shallow formations that are historically known for oil production, as well as helium-rich natural gas deposits along the vast Peace River Arch. This innovative strategy seeks to unlock hydrocarbons from these zones through the same wellbore, or potentially through the drilling of additional wells to facilitate discovery and development.
Robust Historical Performance Fuels Confidence
Insights from previous drilling efforts in the area, notably the 1-30 and 4-29 Leduc oil wells, underline the potential for significant production results. Collectively, these two wells have yielded over 113,000 barrels of light oil and have generated upwards of $13 million in revenue and $8 million in cash flow. This solid performance showcases First Helium's ability to correlate seismic data with economically viable hydrocarbon reserves.
With high ownership over its exploration lands, the company is in a strong position to maintain growth momentum through strategic partnerships aimed at accelerating the development of its assets.
About First Helium
Driven by a highly experienced executive team, First Helium is committed to becoming a leading independent provider of helium gas throughout North America. The company controls over 53,000 acres along the Worsley Trend, which has been the focus of extensive exploration and development activities.
Following successful operations, including the helium discovery at the 15-25 well, and productive oil wells at locations 1-30 and 4-29, First Helium has laid the groundwork for further drilling opportunities. The cash flow generated from successful operations remains instrumental in supporting ongoing exploration and growth initiatives, as the company continually seeks to expand its operational footprint in the region.
Contact Information
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Frequently Asked Questions
What is the current project of First Helium?
First Helium is moving to drill two significant wells, namely 7-15 and 7-30, targeting light oil reserves at Worsley.
How many additional drilling sites has First Helium identified?
They have identified ten additional primary drilling locations within the Leduc region.
What are the historical production results from First Helium's wells?
Prior wells have produced over 113,000 barrels of light oil and generated around $13 million in revenue.
What is First Helium's vision for the future?
The company seeks to become a leading provider of helium gas in North America while continuing to expand its oil production capabilities.
How does First Helium achieve effective drilling?
They utilize advanced seismic data interpretations to minimize risks and identify productive drilling locations.
