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TSXV: Helicopter FRA: 2MC
Expected substantial initial production revenue in the first quarter of 2022
Calgary, AB, December 7, 2021 / CNW /- First Helium Inc. (“First Helium” or “Company”) (Toronto Stock Exchange:Join forces) (FRA: 2MC), a helium exploration company that can obtain important development opportunities throughout the west Canada, Today announced that it has drilled, completed and tested the company’s first exploration well on the company’s Worsley Property. “1-30”). After completion, 419 barrels/day (“bbl/d”) of 35-degree API light oil was discharged from the Leduc formation with minimal pressure drop from 1-30 within the 72-hour test period. First Helium is preparing to put 1-30 into production at the beginning of the first quarter of 2022, with a daily output of about 400 barrels per day.
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- It is preparing to put the oil well into production at a cost of approximately CAD 500,000, and is expected to generate the first cash flow by the end of the first quarter of 2022;
- The oil produced by the oil well will be transported by truck to the selected receiving terminal and marketed through a third-party marketing agreement;
- The cash flow from the well will be used to accelerate the company’s 79,000 acres of helium exploration and development along Worsley Trend, and to pay for ongoing corporate G&A costs; and
- Based on the current price of light oil and an estimated output of 400 barrels per day, First Helium estimates that the payback period for the well is about 6 months.
Management Review
Ed BereznikiPresident and CEO of First Helium said: “We are very satisfied with the performance of Discovery Wells 1-30. Given the current pricing of WTI 65 USD arrive 70 USD Per barrel, and our estimated net income of 45-50 Canadian dollars per barrel, we expect that this well will be paid in about six months. Mr. Bereznicki added, “Based on the current implied production transaction multiples of Canadian light oil producers, this well represents a significant potential increase in the value of First Helium’s shareholders’ assets. To capture the total value of this extraordinary exploration success,…
The full story can be found on Benzinga.com
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