First Helium (TSXV: HELI) is set to drill its first exploratory well in Alberta. The announcement follows the Alberta Energy Regulator approving the firm to conduct drilling on its Worsley property.
Drilling is expected to begin early next month, with the exploratory well slated to be near to the firms discovery well on the property. The new well is planned to be completed and then shut in as the company works towards assembling production infrastructure for both the discovery well as well as the new exploratory well.
The company is reportedly in the process of looking for funding options to finance the cost of the processing facility required to achieve production, which includes the potential for a third party processor to become involved.
The exploratory well is expected to deliver similar results to that of the discovery well, which was found to contain 1.3% helium via a ten day flow test. The well delivered 2 mmcfd of raw gas, which is comprised of 65% natural gas. The natural gas is currently expected to be produced with the helium gas, and sold to market for revenue while also being used to power potential production facilities.
Finally, the firm indicated that it has additional drill locations targeted for future expansion.
First Helium last traded at $0.205 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.
