ORIGINAL: First Helium Bolsters Financial Position in March - Receives $1.25 Million for February 1-30 Production and $1.85 Million in Warrants Exercises
2022-03-29 06:00 ET - News Release
First Helium Bolsters Financial Position in March - Receives $1.25 Million for February 1-30 Production and $1.85 Million in Warrants Exercises
CALGARY, AB, March 29, 2022
TSXV: HELI OTCQB: FHELF FRA: 2MC
CALGARY, AB, March 29, 2022 /CNW/ - First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC), today announced a significant positive change to the Company's balance sheet based on ongoing payments from light oil production and cash proceeds from the exercise of previously issued warrants.
Strong revenues continue through the receipt of payments of $1.25 million for light oil volumes delivered during February from the "1-30" well which is located on First Helium's 100% owned, 79,000 acre Worsley landholdings in Northern Alberta, Canada. The 1-30 well was brought on-stream on January 23, 2022, and produced an average of approximately 430 barrels per day ("bbls/d") of light oil during the month of February. The Company also recently announced the successful drilling, completion and testing of its 4-29 light oil discovery well and estimates that it will receive payment in April of approximately $100,000 for volumes of oil produced during the testing operations.
In addition, during the month of March First Helium has received proceeds of approximately $1,490,500 from the exercise of 2,981,082 warrants with a strike price of $0.50 and approximately $359,000 from the recent exercise of 1,025,812 broker warrants with a strike price of $0.35. Also, in an effort to broaden its potential investor base, First Helium's common shares began trading in the U.S.; its listing was upgraded to the OTCQB on March 14, 2022, under ticker "FHELF".
"The 1-30 well continues to perform very strongly and we look forward to bringing the 4-29 well on stream next month," said Ed Bereznicki, President & CEO of First Helium. "Total cash proceeds of approximately $3.2 million from the early exercise of warrants along with cash flow from the two wells will be deployed to help support ongoing helium exploration activities at our Worsley Property and our Southern Alberta Helium Fairway exploration land," added Mr. Bereznicki.
ABOUT FIRST HELIUM
Led by a core Senior Executive Team with diverse and extensive backgrounds in Oil & Gas Exploration and Operations, Mining, Finance, and Capital Markets, First Helium seeks to be one of the leading independent providers of helium gas in North America.
Building on its successful 15-25 helium discovery well at the Worsley project, the Company has identified numerous follow-up drill locations and acquired an expansive infrastructure system to facilitate future exploration and development of helium across its Worsley land base. Cash flow from its successful 1-30 and 4-29 oil wells at Worsley will help support First Helium's ongoing helium exploration and development growth strategy.
First Helium holds over 79,000 acres along the highly prospective Worsley Trend in Northern Alberta, and 276,000 acres in the Southern Alberta Helium Fairway, near existing helium production. In addition to continuing its ongoing exploration and development drilling at Worsley, the Company has identified a number of high impact helium exploration targets on the prospective Southern Alberta Helium Fairway lands to set up a second core exploration growth area for the Company.
For more information about the Company, please visit www.firsthelium.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.
SOURCE First Helium Inc.
First Helium Inc., Investor Relations, Email: email@example.com
, Phone: 1-833-435-4861