First Helium talks oil, helium assets amid supply risks

Executive Summary

• First Helium Inc. highlights the strategic value of its North American oil and helium assets amid global supply uncertainties driven by geopolitical tensions in the Middle East.
• The company reports successful drilling and testing results at its Worsley, Alberta land base, including heavy oil recovery from the Charlie Lake formation and helium-enriched natural gas discoveries in the Leduc and Blue Ridge formations.
• Management confirms the commercial viability of the Charlie Lake oil project and outlines significant contingent resources for helium, supported by completed engineering studies and identified future drilling locations.

Key Details

• Charlie Lake Shallow Heavy Oil Project:
  • Internal assessment justifies commercial development of oil in place and recoveries.
  • Over 30 horizontal drilling locations identified across 10 sections, targeting approximately 125,000 barrels per well.
  • Existing company-owned infrastructure supports lower operating costs.
  • Well 7-30: Drilled and completed in Q1 2025; recovered approximately 50 barrels of 15-degree API oil in two calendar days following acid stimulation, demonstrating vertical well, cold flow heavy oil capability.
  • Well 1-30: Logs confirm management's assessment of the Charlie Lake formation, with clean oil observed at surface while drilling through the same interval tested in 7-30.
• Helium Project (15-25 Vertical Well - Leduc Formation):
  • Tested natural gas with 1.3% helium content; development is pending a processing facility.
  • Contingent Resource Estimate:
    • 323 million cubic feet (mmcf) helium.
    • 12.6 billion cubic feet (Bcf) natural gas.
    • 372 million barrels (mbbl) natural gas liquids.
  • Estimated NPV (10% discount rate) of approximately $18 million (based on $500/mcf helium).
  • Front-end engineering design (FEED) study for the 15-25 helium processing facility completed.
  • 46 km of gas pipelines installed to support helium gas production.
  • Over 9,600 acres of proprietary 3-D seismic acquired at East Worsley near well bores with 1.7% to 5.7% helium content.
• Helium Project (5-27 Horizontal Well - West Worsley / Blue Ridge Formation):
  • Well drilled and cased, ready for completion and testing.
  • Historical offset production supports helium content of approximately 0.8% to 0.9%.
  • Successful testing would unlock an additional 31 horizontal drilling locations.
• Helium Project (7-15 Vertical Well - East Worsley / Blue Ridge Formation):
  • Located approximately 26 km east of the 5-27 well.
  • Tested 1.0% helium content, confirming potential for regional, helium-enriched natural gas development play across the 53,000-acre land base.
• Land Base:
  • Company holds over 53,000 acres (approximately 83 sections) at Worsley, Northern Alberta, Canada.
• Geopolitical Context:
  • CEO Ed Bereznicki cites disruptions to a major helium production facility in Qatar (linked to Iran conflict) as intensifying concerns over global supply reliability, highlighting the strategic value of North American sources.
• Strategic Initiatives:
  • Company is evaluating opportunities to accelerate development, including potential partnerships and financing alternatives.

Notable Quotes

• "Recent geopolitical developments are reinforcing the importance of stable, North American-sourced energy and helium. Our combination of oil development potential, and a significant helium enriched natural gas resource, positions the company to benefit from growing supply security concerns." — Ed Bereznicki, President and CEO
• "Our focus remains on advancing our assets in a disciplined manner while positioning the company to capitalize on evolving global energy dynamics." — Ed Bereznicki, President and CEO