First Helium plans for sequential drilling of two targets

First Helium announced plans to drill two complementary vertical Leduc oil targets at its Worsley property in Northern Alberta, Canada. The program will include a proven undeveloped (PUD) location at 7-30 and the recently identified 7-15 Leduc anomaly. The company has initiated licensing for both locations and intends to optimize drilling costs by executing a two-well drilling program in succession.

The 7-15 well will target a large structure in the Leduc Formation that is on trend with and approximately 5x greater in areal extent than the Company’s initial 1-30 Leduc oil pool discovery. Upon completion, the 1-30 well flowed 419 barrels per day (bbld) of 35-degree API light oil from the Leduc Formation over a test period of 72 hours on a minimal drawdown. Given its premium light oil pricing, attractive vertical well drill costs and lower initial royalty rates, the 1-30 well paid out in less than 4 months.

The PUD 7-30 well directly offsets the previously discussed 1-30 well. The 7-30 location was identified using the same Seismic interpretation technique as used for the previously successfully drilled offset wells 1-30, and 4-29. Together, the successful 1-30 and 4-29 Leduc oil wells have produced 113,000 barrels of light oil and generated in excess of $13 million in revenue and $8 million in cash flow to date.

In addition to the 7-30 and the 7-15 location on the Leduc Anomaly, the company has identified 10 further Leduc locations based on the same interpretation over existing proprietary 3D seismic. Through the 1-30 and 4-29 drilling success, the company has achieved a direct correlation of its Leduc seismic interpretation. Continued success through drilling the 7-30 PUD well, and 7-15 will result in an immediate low risk 10 well scalable project.