First Helium Acquires Production Infrastructure and Additional Lands at Worsley Project
The Acquired Assets are Expected to Accelerate the Company's Commercial Development
CALGARY, AB, Nov. 15, 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, is pleased to announce that it has closed on two separate transactions (the "Acquisition") with private, third-party companies (the "Vendors") to acquire an aggregate of 40 kilometers of natural gas gathering pipeline assets (the "Pipeline Assets"). The Acquisition was made for total consideration of $25,000 in cash and the assumption of future abandonment and reclamation liabilities of up to $200,000. It is subject to normal regulatory approvals.
The Acquisition also included 1,920 acres (1,690 net) of land and two suspended wells, one of which is being evaluated for re-activation based on 0.83% of helium content in historical testing. The other well, which historically produced over 45 Bcf of raw gas at approximately 1% helium content, is tied into the gathering system and is centrally located near a main, third party, natural gas sales transmission line. It will provide the Company with expanded operational flexibility in the site planning of its helium processing facility.
"Closing of the Acquisition accelerates the commercial development of our helium project at Worsley," said Ed Bereznicki, President & Chief Executive Officer of First Helium. "The opportunity to acquire this extensive infrastructure package represents a tremendous savings in time and $6-8 million in upfront capital cost, as well as provides us with the main gathering line that we require to support the larger scale development across our entire Worsley asset base," added Mr. Bereznicki.
The Pipeline Assets, which extend across First Helium's 79,000-acre land base on the Worsley Trend, will be connected to the Company's planned central helium processing facility and form an integral component of its regional helium processing infrastructure. The replacement cost to construct the Pipeline Assets is estimated by First Helium's management team to be approximately $6-8 million, and would require many months of potential applications, consultations and approvals. The regional system will enable First Helium to tie-in its previously announced discovery well that has produced results of 2mmcf/d of raw gas at over 1.3% of helium content over multiple, long-duration test periods, along with future wells to be drilled along the Worsley Trend.
Helium gas in the Worsley area is produced along with natural gas and associated hydrocarbon by-products. The Company intends to use a portion of the natural gas produced from its wells to generate clean power for its processing facility operations. Surplus natural gas will be transported via the Pipeline Assets to sales lines and sold into the market by First Helium. Similarly, the associated hydrocarbon by-products will be separated, collected and sold. As the Company re-activates the Pipeline Assets to develop its helium processing infrastructure, any incremental revenue derived from the sale of natural gas and other by-products will defray First Helium's development costs.
ABOUT FIRST HELIUM
First Helium is a helium exploration and development company operating in the Worsley area of Alberta, Canada. It was founded to capitalize on the untapped potential of significant helium resources in Western Canada, in response to the shifting supply dynamics of the global marketplace. Building on its successful discovery well, which has production tested at over 1.3% of helium content over three test periods, First Helium is working to develop its land base of over 79,000 acres along the highly prospective Worsley helium trend, and 880,000 acres of exploration option lands located in southeast Alberta, near existing helium operations. To establish its operating base, First Helium seeks to market its helium gas into the North American market via term off-take marketing arrangements with established third-party distribution companies.
For more information about the Company, please visit www.firsthelium.com. The Company's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on its profile page on SEDAR at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Edward J. Bereznicki
President, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This news release contains certain statements or disclosures relating to First Helium that are based on the expectations of its management as well as assumptions made by and information currently available to First Helium which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that First Helium anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "expect", "will" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the listing of the Common Shares on the Exchange, the use of funds and the Company's strategy. The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of First Helium including, without limitation: that First Helium will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund First Helium's capital and operating requirements as needed; and certain cost assumptions.
Forward-looking statements are based on estimates and opinions of management at the date the statements are made and are subject to risks, uncertainties and assumptions, including those set out in the Final Prospectus dated June 28, 2021 and filed under the Company's profile on SEDAR at www.sedar.com. First Helium does not undertake any obligation to update forward looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
SOURCE First Helium Inc.
For further information: First Helium Inc.: Investor Relations, Email: [email protected], Phone: 1-833-HELIUM1 (1-833-435-4861)
Related Links
