While it may not be helium, production has officially begun for First Helium (TSXV: HELI). The firm announced this morning that production has begun from the firms first well, which hit light oil.
Production has reportedly been underway for a period of eight days at the well, referred to as I-30. The well is reportedly producing light oil at an average rate of 435 barrels per day. The company currently expects netbacks of $55.00 to $60.00 per barrel based on a WTI price of US$80.00 to US$85.00.
Cash flow from the production of oil is to be utilized for the further exploration and development of the firms Worsley Trend property, where it intends to continue to look for helium. Cash flow is expected to begin in late February, with the firm having sourced a counter party to market its oil production already. Monthly cash flow is currently estimated at $0.6 million based on current production.
A second well is currently slated to be spudded in mid February.
First Helium last traded at $0.33 on the TSX Venture.
Information for this briefing was found via Sedar and First Helium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
