First Helium Sets Sequential Drilling Plans for New Oil Targets

First Helium Targets Growth with Sequential Drilling

FIRST HELIUM INC. (“First Helium” or the “Company”) (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) has made an exciting announcement regarding its plans for new drilling. The company is set to drill two strategic vertical oil wells at its Worsley property. This initiative aims to explore both a proven undeveloped oil location and a recently discovered large Leduc anomaly.

Details of the Drilling Program

The drilling program consists of two adjacent oil targets: the proven undeveloped location at 7-30 and the newly identified 7-15 Leduc anomaly, which is significantly larger than existing discoveries. The 7-30 site has been assessed for its potential, with independent evaluators assigning it a substantial reserve estimate of 196,700 barrels. This sequential drilling program aims to optimize costs through planned operations in succession.

Statements from Leadership

"Our current initiative reflects a keen focus on generating near-term cash flow while maximizing efficient operational practices," stated Ed Bereznicki, President & CEO of First Helium. "By successfully executing this two-well program, we aim not only to tap into the proven reserves at the 7-30 location but also to explore the substantial potential of the large Leduc anomaly at 7-15. This dual-focus allows us to strategically advance our exploration efforts and operational efficiency simultaneously," he added.

Exploring the 7-15 Leduc Anomaly

The 7-15 Leduc Anomaly is particularly noteworthy due to its large geological structure in the Leduc Formation. This target is estimated to be approximately five times larger in area compared to the 1-30 Leduc oil pool, which previously yielded impressive results. The 1-30 well managed to flow 419 barrels of high-quality light oil per day from the Leduc formation during a testing phase, demonstrating the potential productivity of these sites.

Understanding the Proven Undeveloped (PUD) Location

The 7-30 PUD location directly correlates with the previously discussed 1-30 well, utilizing the same successful seismic interpretation methods. The combined drilling successes of both wells have produced a striking total of 113,000 barrels of light oil and generated an impressive revenue stream exceeding $13 million.

Future Potential within the Worsley Project

First Helium has an ambitious vision for its Worsley project, having identified a total of 12 primary targets based on cutting-edge seismic data collection and interpretation. In addition to the upcoming drilling activities, 10 more potential Leduc sites have been pinpointed for future development. This significant growth opportunity stems from the correlation between successful drilling results and the subsequent seismic interpretation.

The Worsley Leduc Formation's Promise

The Leduc play offers incredible opportunities for expanding the company’s oil production capabilities. Given that all drilling operations will occur on land wholly owned by First Helium, there is a solid foundation for maximizing returns from these efforts. As growth potential within the Worsley project expands, the Company is keenly seeking to explore partnerships to further accelerate development timelines.

About First Helium

First Helium is committed to becoming a leading independent provider of helium gas within North America. The company is managed by a dedicated executive team featuring diverse experiences in areas such as Oil & Gas Exploration, Operations, Finance, and Capital Markets. First Helium's 53,000 acres along the Worsley Trend have been the center of exploration activities, including the successful helium discovery at the 15-25 well, indicating numerous opportunities ahead.

Cash flow generated from their successful oil wells has significantly supported their ongoing exploration and development strategies, highlighting the synergy between oil and helium drilling operations.

Frequently Asked Questions

What is the main goal of First Helium's new drilling program?

The primary goal is to explore proven undeveloped oil reserves while investigating a newly discovered large Leduc anomaly to optimize production efficiency.

What are the key locations targeted in this drilling program?

The two key locations targeted are the 7-30 proven undeveloped oil site and the 7-15 Leduc anomaly.

How has previous drilling performance influenced current strategies?

Previous drilling performances have demonstrated strong production rates and revenues, guiding the new drilling strategy towards sites with similar geological potential.

Who is in charge of First Helium's operations?

The company's operations are led by Ed Bereznicki, who serves as the President and CEO, bringing extensive experience in the oil and gas sector.

Does First Helium have plans for future developments?

Yes, First Helium intends to explore potential partnerships to further accelerate the development of its assets and expand its drilling programs as new opportunities arise.

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