The Conversation (0)
First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced two discoveries at its Worsley Project:
Shallow Heavy Oil Discovery
First Helium (TSXV:HELI,OTCQB:FHELF,FRA:2MC) is a Canadian company developing helium resources in Alberta, Canada. The company’s primary asset is the Worsley project spanning 53,000 acres, including helium-enriched natural gas, oil and other natural resources. First Helium has made significant progress with multiple discoveries, including a helium discovery well and successful oil wells. The company aims to grow its production and cash flow through ongoing exploration and drilling activities.
First Helium targets over $100 million in annual revenue within the next three to five years. Based on current projections, vertical drilling alone could generate over $100 million in annual revenue, with cash flow estimated to reach $70 million annually.
The Worsley project is distinguished by its significant helium resources and multi-zone drilling potential for helium, natural gas and oil. Worsley area has produced over 1 Bcf of helium, which was not recovered in previous natural gas operations, highlighting the untapped potential of the region for helium extraction.
The Worsley project area benefits from an existing natural gas gathering infrastructure, expediting the timeline to bring helium to market. First Helium expects the first production to begin in the fourth quarter of 2025, positioning it to become a key supplier in the growing North American helium market.
Company Highlights
- Helium is a critical mineral with steady growth in demand. Major companies like Google, Amazon, SpaceX, Samsung, NVIDIA and Intel rely on it.
- Helium prices have increased by over 50 percent in the last three years and the market is expected to grow 300 percent by 2030.
- First Helium’s indicative cash netbacks are three to four times higher than typical Canadian natural gas producers.
- First Helium offers exposure to helium, natural gas and oil revenue streams, which diversifies risk and increases value.
This First Helium profile is part of a paid investor education campaign.*
HELI:CA
First Helium Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
First Helium
Investor Insight
First Helium’s scalable development strategy, differentiated by a multi-commodity approach and supported by a well-defined project roadmap, positions it as a potential leader in helium production within North America.
Overview
First Helium (TSXV:HELI,OTCQB:FHELF,FRA:2MC) is a Canadian company focusing on exploring and developing helium resources in Alberta, Canada. The company’s primary asset is the Worsley project, which spans 53,000 acres and includes both helium-enriched natural gas, oil and other natural resources. First Helium has made significant progress with multiple discoveries, including a helium discovery well and successful oil wells. The company aims to grow its production and cash flow through ongoing exploration and drilling activities.
First Helium is poised for substantial growth in the coming years, with the scalability of the Worsley project providing a path to significant increases in production and revenue. The company has set ambitious financial goals, targeting over $100 million in annual revenue within the next three to five years. Based on current projections, vertical drilling alone could generate over $100 million in annual revenue, with cash flow estimated to reach $70 million annually.
Helium, a critical and scarce resource, is indispensable in various high-tech industries, including semiconductor manufacturing, artificial intelligence, space exploration, defense and healthcare. Helium's demand is projected to grow 300 percent by 2030, driven by its irreplaceable role in industries that require precision, cooling and inert properties. Major companies like Google, Amazon, SpaceX, NVIDIA and Intel rely on helium for their operations. The global helium market, valued at $3.94 billion in 2021, is expected to grow to $13.26 billion by 2030.
However, the supply of helium is under pressure due to geopolitical uncertainties and production limitations from major global suppliers, including Qatar, Algeria and Russia. Additionally, the US, currently the largest producer of helium, is expected to become a net importer within the next three to five years. This shift opens significant opportunities for Canada, which is the fifth-largest global resource of helium but contributes less than 2 percent of the world’s annual production. The Canadian government has also classified helium as a critical mineral, underscoring its strategic importance in the transition to a sustainable future.
This global dynamic is creating opportunities for helium explorers such as First Helium to leverage a growing market. Led by an experienced management and technical team with successful track records in the oil and gas, mining and energy sectors, First Helium is well-placed for significant growth.
First Helium’s long-term vision is to establish a regional helium-enriched natural gas and oil play in Alberta, with the Worsley project serving as a template for future developments. The company is actively evaluating potential partnerships and acquisition opportunities to accelerate the development of its assets and capitalize on the growing demand for helium across North America and globally.
Company Highlights
- Helium is a critical mineral with steady growth in demand. Major companies like Google, Amazon, SpaceX, Samsung, NVIDIA and Intel rely on it.
- Helium prices have increased by over 50 percent in the last three years and the market is expected to grow 300 percent by 2030.
- First Helium’s indicative cash netbacks are three to four times higher than typical Canadian natural gas producers.
- First Helium offers exposure to helium, natural gas and oil revenue streams, which diversifies risk and increases value.
Key Project
Worsley Helium Project
The company's 100 percent owned flagship Worsley project, spans 53,000 acres (approximately 83 square miles) in a multi-commodity region of Alberta. The project is located in a historically productive area that has yielded over 315 billion cubic feet (Bcf) of natural gas and 17 million barrels of oil. The Worsley project is distinguished by its significant helium resources and multi-zone drilling potential for helium, natural gas and oil. Worsley area has produced over 1 Bcf of helium, which was not recovered in previous natural gas operations, highlighting the untapped potential of the region for helium extraction. In particular, the deeper Leduc formation to the eastern part of the land base remains largely unexplored due to higher nitrogen concentrations in the natural gas resource, which made the product unacceptable to the local gas pipeline transportation company, and discouraged further drilling by historic natural gas companies. This spells tremendous exploration opportunity for First Helium, as today’s helium processing equipment can separate helium, natural gas and nitrogen, resulting in marketable helium and natural gas.
First Helium’s vertical helium discovery well, 15-25, is ready to be brought into production and is expected to provide a steady stream of helium and natural gas supply. Additionally, the company has identified 12 follow-up vertical drilling targets, and a large structural opportunity based on proprietary 3D seismic data, which positions the project for significant scalability.
First Helium has secured a 10-year "take-or-pay" helium offtake agreement with a major global industrial gas supply company, which would support robust and predictable cash flow. The agreement covers up to 80 percent of helium production from the Worsley project’s 15-25 well, with the potential to purchase 100 percent of production depending on the pace of growth. The agreement also provides First Helium with flexibility, allowing the company to market up to 20 percent of helium production on a potentially more lucrative “spot” sales or merchant liquefaction basis.
The Worsley project area benefits from an existing natural gas gathering infrastructure, expediting the timeline to bring helium to market. First Helium expects the first production to begin in the fourth quarter of 2025, positioning it to become a key supplier in the growing North American helium market.
Worsley project indicative economics
The resource base of the Worsley project is significant. The project comprises one proven, undeveloped oil location with reserves of approximately 200,000 barrels of oil (as verified by third-party reserve engineers) and one natural gas/helium well. The unrisked, best estimate of contingent resources for this well includes just under 13 Bcf of natural gas and over 300 million cubic feet (MMcf) of helium. These reserves provide a stable foundation for the company’s growth, with the natural gas/helium production offering substantial economic upside due to the high-value nature of helium. Helium prices have increased by more than 50 percent over the past three years, with global import prices rising from approximately $US 310 per thousand cubic feet (Mcf) in January 2020 to over $US 476 per Mcf by November 2023. This price growth, combined with helium’s critical applications, underpins the strong economics of First Helium’s Worsley project.
The company’s operations focus on two key formations within the Worsley project area. The Leduc formation, known for its helium-enriched natural gas and light oil, offers substantial production potential. The Blue Ridge formation is another high-margin, helium-enriched premium natural gas play that adds further value. The company has drilled three wells in the area, achieving 100 percent drilling success on two oil wells, which have collectively generated approximately $13 million in revenue. These results highlight the resource-rich nature of the Worsley project and demonstrate First Helium’s capability to deliver consistent drilling success and revenue generation. The third well, drilled horizontally into the Blue Ridge formation, was cased, and is ready for completion and testing. If successful, it will establish a regional, repeatable, helium-enriched natural gas play.
The company has identified 12 highly prospective locations for additional drilling in the Leduc formation, and the successful testing of its horizontal well (5-27) is expected to add over 30 follow-up horizontal drill locations in the Blue Ridge formation at West Worsley, further enhancing the scale of the project.
After receipt of regulatory licensing approvals in late 2024 and early 2025, First Helium has begun drilling its proven undeveloped (PUD) 7-30 oil location at the Worsley property. Following drilling of the 7-30 vertical well, the contractor's drilling rig will move directly to the 7-15 location to begin drilling in early February, barring any unforeseen delays.
Processing plant
In conjunction with proving up additional helium resource, the company is also exploring financing options for the construction of a helium processing plant, which would further enhance its production capabilities. The completion of this facility is expected to generate $3 to $5 million in annual project-level cash flow from the single 15-25 well alone, setting the stage for future growth and expansion.
Management Team
Ed Bereznicki - President, CEO and Director
Ed Bereznicki is a highly experienced energy sector executive with more than 25 years in corporate finance, capital markets, and M&A, focusing particularly on oil and gas exploration and production. He spent 15 years as a senior investment banker with firms such as Raymond James and GMP Securities, where he raised over $20 billion in equity and convertible debt for energy sector projects. His leadership roles extend to start-up energy ventures, where he has guided companies through IPOs, mergers and acquisitions. He has also handled risk management, pipeline operations, and international projects, making him an expert in leading large-scale energy and natural resource companies. His broad experience across financial and operational domains has contributed significantly to his ability to manage complex corporate growth initiatives in the helium sector.
Robert J. Scott - CFO and Director
Robert Scott is a chartered professional accountant and a chartered financial analyst with over 20 years of professional experience in financial management, corporate compliance, and strategic business planning. He has held senior management and board positions at multiple TSX-V listed companies, where he was instrumental in raising more than $200 million in equity capital for growth-stage companies. His extensive expertise covers IPOs, reverse takeovers, mergers and corporate restructuring. In addition to corporate finance, he has in-depth experience in merchant and commercial banking, which has bolstered his capability to guide companies through complex financial environments, especially in the natural resource sector.
Shaun Wyzykoski - Vice-president, Engineering
Shaun Wyzykoski brings 25 years of experience in the Canadian oil and gas industry, specializing in engineering, operations, acquisitions, and divestitures. He has held senior roles at several major energy companies, including chief operating officer of Orlen Upstream Canada, and senior engineering positions at Fairmount Energy and TriOil Resources. He was also part of the founding engineering group at Crescent Point Energy, one of Canada's leading oil and gas producers. Wyzykoski's expertise includes designing and executing complex operational strategies to leading acquisition efforts and integrating new technologies into exploration and production activities. His deep operational knowledge helps him drive efficiency and innovation at First Helium.
Marc Junghans – Geology and Asset Development Advisor
Marc Junghans is a seasoned geologist with more than 40 years of experience in the oil and gas sector, focusing on the Western Canadian Sedimentary Basin and U.S. markets. He co-founded and successfully sold two private-equity-backed junior oil and gas companies, where he served as vice-president of exploration. At Compton Petroleum, he helped grow production from 2,500 barrels of oil equivalent per day (boed) to 34,000 boed, leading exploration efforts that significantly enhanced the company’s value. He has held senior geological positions at major firms such as Husky Oil, Anderson Exploration, Canterra Energy, and Tundra Oil & Gas. Junghans has drilled over 170 horizontal wells across Alberta, Saskatchewan and Manitoba, bringing invaluable technical expertise to First Helium’s asset development strategy.
Advanced stage, high-value oil, and helium-enriched natural gas project in Alberta, Canada
First Helium Announces Shallow Heavy Oil Discovery
- In the recently completed 7-30 well, approximately 50 barrels of 15-degree API oil was recovered in the two calendar days following an acid stimulation, demonstrating vertical well, cold flow heavy oil capability.
- The 7-15 well, without stimulation, also produced small quantities of heavy oil from the same formation and was shut-in for further evaluation following spring breakup.
- This discovery confirms the Company's ongoing evaluation of this zone ("Heavy Oil Zone"), which occurs repeatedly over the Company's 53,000-acre (~83 square miles) Worsley land base as a potential shallow heavy oil development play. The Company is now proceeding to prepare a plan to develop this potentially large, repeatable play.
Helium Enriched Natural Gas Play
- Successfully tested the Blue Ridge Formation in its 7-15 well, which flowed natural gas with helium content of 1.0%.
- Results confirm the eastern extension of the Blue Ridge helium enriched natural gas regional play concept established on the Company's West Worsley lands.
"Our recent drilling program has validated what we've long understood about the multi-zone potential of our Worsley property," said Ed Bereznicki, President & CEO of First Helium. "While our primary oil target in the Leduc formation did not test as commercially viable, our secondary target for heavy oil has exceeded our expectations for inflow of cold flow heavy oil from a vertical well bore. We are very excited to proceed with the development of this potentially large, shallow heavy oil play utilizing contemporary horizontal drilling methods. Our initial economic analyses indicate attractive rate of return estimates for a large, lower risk development play," added Mr. Bereznicki.
"In addition to the heavy oil play, we are pleased to confirm the extension of our Blue Ridge helium enriched natural gas play to the eastern block of First Helium's land base. This has the potential to significantly increase the size of this regional play at Worsley, making it attractive to potential partners for large scale development", concluded Mr. Bereznicki.
The Company provides additional details on these two development opportunities:
Shallow Heavy Oil Opportunity
The Heavy Oil Zone has been recognized by the Company in numerous existing wellbores across the Worsley land base, representing the potential for a large, attractive, lower-risk oil development opportunity utilizing contemporary horizontal drilling technology. Based on the Company's evaluation, including results of the 7-15 and 7-30 wells, potential project highlights would include:
- Large volumes of oil in place, with management's initial estimate of approximately 5 million barrels of original oil in place per square mile.
- Application of contemporary, proven horizontal drilling techniques to maximize oil recovery.
- Management analyses indicate attractive rate of return estimates and payback periods for a lower risk, cold flow heavy oil development play.
- Company owned oil battery and water disposal facilities nearby to reduce operating costs.
- Evaluation work has begun to prepare a plan for an area development project across Worsley.
- Next steps include bringing the 7-30 heavy oil zone into production and preparing to drill a horizontal test well into the shallow formation to kickstart the development plan – both activities are being planned for early Q3.
Blue Ridge Opportunity
The Company has confirmed the extension of the Blue Ridge Formation from West Worsley to the eastern portion of its property through recent drilling. Highlights include:
- Blue Ridge first identified at West Worsley, where two historical vertical wells produced natural gas with ~0.8% helium content.
- 5-27 Blue Ridge horizontal well (100% owned by First Helium) at West Worsley is cased and ready for completion.
- 7-15 well gas sample analysis returned an average helium content of 1.0%, which is notably higher than the 0.8% results at West Worsley - confirming the observed trend of increasing helium content from west to east across the Company's Worsley land base.
- Based on results from drilling the 7-30 and 7-15 wells, the Company confirmed that the Blue Ridge play extends to East Worsley.
- Company-owned pipeline network provides an infrastructure advantage for development across Worsley.
- Next steps include completing and testing the 5-27 horizontal well and preparing an area development plan in collaboration with potential project partners.
Leduc Formation Targets Update
The Company's recent drilling program also continues to advance its Leduc Formation targets:
- Higher risk play for light oil, natural gas and helium.
- Individual vertical exploration wells target discrete structures, complementing the lower-risk, more expansive, overlying horizontal development plays represented by the Heavy Oil Zone and the Blue Ridge Formation.
- While the Leduc Formation structure target was reached as planned in each of 7-30 and 7-15, neither opportunity demonstrated commercial potential during testing, though valuable geological data was obtained to refine future targeting. The Company will incorporate the data into a fresh evaluation of the Leduc play, incorporating the prior successes at the15-25, 1-30, and 4-29 wells.
- Interpretation of the Company's proprietary 3D Seismic, incorporating the recent wells 7-15 and 7-30, validates the Company's technical approach, reducing risk on future locations.
"Our multi-formation approach at Worsley represents a balanced portfolio of opportunities," noted Mr. Bereznicki. "The combination of higher-impact Leduc targets along with more systematic development opportunities in the Heavy Oil Zone and Blue Ridge Formation provides both near-term potential and longer-term, scalable growth across our extensive land base."
The Company will be providing more detail regarding its development plans for each opportunity over the course of the next quarter.
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells 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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
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
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.
News Provided by GlobeNewswire via QuoteMedia
First Helium Completes Drilling 7-15 Well & Cases for Completion and Testing
First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it has completed drilling its 7-15 exploration well at its Worsley Property in Northern Alberta. The 7-15 well has been cased for completion and testing. The Company is now proceeding with a plan to complete and test both the 7-30 and 7-15 wells.
"We are pleased to have completed drilling our 7-15 well which was delivered on time and within budget, despite drilling during challenging winter conditions. We look forward to completing and testing both wells over the coming weeks," said Ed Bereznicki, President & CEO of First Helium.
The proximity of the two locations (see Figure 1), approximately 6 kilometers apart, will enable the Company to efficiently complete and test both wells. Subject to results, necessary preparations are being made to complete, equip and tie-in both wells prior to spring break up in Alberta (a period from mid/late March through May when Provincial highway restrictions limit heavy equipment movement), further setting the stage for systematic development across the Company's extensive, 100% owned land base.
Figure 1:
East Worsley Project Inventory
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells 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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
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
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d53617a4-0348-456b-aa2e-0eaa6f3005a9
News Provided by GlobeNewswire via QuoteMedia
First Helium Spuds 7-15 Exploration Well
First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it has begun drilling its high impact Leduc anomaly, the 7-15 well, at its Worsley Property in Northern Alberta. The location was identified on proprietary 3D seismic data interpreted last spring. In addition to the primary Leduc formation target, the Company will be evaluating multiple uphole zones for oil, natural gas and helium. These zones have been previously identified on First Helium wells and in other existing well bores on, and around the Company's Worsley land base. The Company will continue to provide regular updates on ongoing field activities.
"We are excited to be drilling our high impact Leduc anomaly, 7-15, which on seismic is approximately 5X the areal extent of our successful 1-30 light oil pool discovery. Favorable results from this well will further de-risk our Leduc Play, where we have identified 10 additional primary locations on proprietary 3D seismic, and potential for further southeast extension across our 100% owned lands," said Ed Bereznicki, President & CEO of First Helium. "With this next drill, we are also excited about continuing to evaluate the multi-zone potential across our Worsley land base. Success in these stacked zones could provide meaningful additional value for our shareholders from multiple formations and commodities," added Mr. Bereznicki.
The recently drilled 7-30 development well has been cased for completion and testing. Following drilling of the 7-15 well, and subject to results, necessary preparations are being made to complete, equip and tie-in both wells prior to spring break up in Alberta (a period from mid/late March through May when Provincial highway restrictions limit heavy equipment movement), further setting the stage for systematic development across the Company's extensive 100%-owned land base.
Figure 1:
East Worsley Project Inventory
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells 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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
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
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/695cd8e5-7291-4f66-b2f9-a6bdc7d7928e
News Provided by GlobeNewswire via QuoteMedia
First Helium Completes Drilling 7-30 Well & Cases for Completion and Testing
First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it has completed drilling its proven undeveloped ("PUD") 7-30 oil location at its Worsley Property in Northern Alberta 1,2 . The 7-30 well has now been cased for completion and testing. In addition to the targeted Leduc formation, the Company encountered multiple uphole, shallower zones with prospectivity for oil, natural gas and helium. These zones have been previously recognized and mapped on the Worsley land base. The drilling rig is now being mobilized to the 7-15 location to begin drilling over the next few days, barring any unforeseen delays. The Company will continue to provide regular updates on ongoing field activities.
"We are pleased to have completed drilling our 7-30 well which was delivered on time and within budget. We will follow up by drilling our high impact Leduc anomaly, 7-15, which on seismic is approximately 5X the areal extent of our successful 1-30 light oil pool discovery. Favorable results from these two wells will further de-risk our Leduc Play, where we have identified 10 additional primary locations on proprietary 3D seismic, and potential for further southeast extension across our 100% owned lands," said Ed Bereznicki, President & CEO of First Helium. "With success, the combined oil potential from these two operations would provide immediate cash flow and meaningful near-term value for our shareholders," added Mr. Bereznicki.
The 7-15 vertical well location (see Figure 1) has been prepared for drilling. The proximity of the two locations, approximately 6 kilometers apart, will enable efficient rig transfer and minimize mobilization costs. Subject to results, necessary preparations are being made to complete, equip and tie-in both wells prior to spring break up in Alberta (a period from mid/late March through May when Provincial highway restrictions limit heavy equipment movement), further setting the stage for systematic development across the Company's extensive, 100% owned land base.
Figure 1:
East Worsley Project Inventory
Notes:
(1) Prepared by Sproule Associates Limited ("Sproule"), independent qualified reserves evaluator, in accordance with COGE Handbook.
(2) Assigned 196,700 Barrels of Gross Proved plus Probable Undeveloped reserves, per Sproule, Evaluation of the P&NG Reserves of First Helium Inc. in the Beaton Area of Alberta (as of March 31, 2023). See First Helium's SEDAR+ profile at www.sedarplus.ca .
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells 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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
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
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f69ce090-4b41-4f95-af1c-7869bf8f4ec4
News Provided by GlobeNewswire via QuoteMedia
First Helium Spuds 7-30 Undeveloped Light Oil Well at Worsley
First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it has begun drilling its proven undeveloped ("PUD") 7-30 oil location at its Worsley Property in Northern Alberta 1,2 . Following drilling of the 7-30 vertical well, the contractor's drilling rig will move directly to the 7-15 location to begin drilling in early February, barring any unforeseen delays. The Company will continue to provide regular updates on ongoing field activities.
"We are excited to be drilling again - starting with our 7-30 light oil development well which spudded this past weekend. We will follow up by drilling our high impact Leduc anomaly, 7-15, which on seismic is approximately 5X the areal extent of our successful 1-30 light oil pool discovery. Favorable results from these two wells will further de-risk our Leduc Play, where we have identified 10 additional primary locations on proprietary 3D seismic, and potential for further southeast extension across our 100% owned lands," said Ed Bereznicki, President & CEO of First Helium. "With success, the combined oil potential from these two operations would provide immediate cash flow and meaningful near-term value for our shareholders," added Mr. Bereznicki.
The 7-15 vertical well location (see Figure 1) has been prepared for drilling. The proximity of the two locations, approximately 6 kilometers apart, will enable efficient rig transfer and minimize mobilization costs. Subject to results, necessary preparations are being made to complete, equip and tie-in the two wells prior to spring break up in Alberta (a period from mid/late March through May when Provincial highway restrictions limit heavy equipment movement), further setting the stage for systematic development across the Company's extensive land base.
Figure 1:
Worsley Project Inventory
| Notes: | ||
| (1) | Prepared by Sproule Associates Limited ("Sproule"), independent qualified reserves evaluator, in accordance with COGE Handbook. | |
| (2) | Assigned 196,700 Barrels of Gross Proved plus Probable Undeveloped reserves, per Sproule, Evaluation of the P&NG Reserves of First Helium Inc. in the Beaton Area of Alberta (as of March 31, 2023). See First Helium's SEDAR+ profile at www.sedarplus.ca . | |
Option Grant
Today the Company granted 8,000,000 incentive stock options to certain Directors, Officers and key Consultants of the Company. The Options are exercisable at a price of $0.09 and valid until January 21, 2030.
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.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells 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 across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
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
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ea92f055-5a98-4262-8475-38fb286df847
News Provided by GlobeNewswire via QuoteMedia
Alvopetro Announces an Operational Update, Q1 2025 Financial Results and Details for our Upcoming AGM
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces an operational update, financial results for the three months ended March 31, 2025 and details for both our Q1 2025 earnings call and our upcoming annual general and special meeting.
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
President & CEO, Corey C. Ruttan commented:
"A 41% increase in Q1 2025 sales volumes provides a strong start to the year and we are well positioned for an exciting organically funded 2025 capital program. We now have the ability to invest in high rate of return opportunities in Brazil and the Western Canadian Sedimentary Basin. Our first two wells in Canada are exceeding expectations and we are looking forward to an expanding capital program including a strong inventory of oil drilling locations. These new opportunities further strengthen our disciplined capital allocation model, balancing returns to stakeholders and organic growth."
Operational Update
April Sales Volumes
Natural gas, NGLs and crude oil sales: | April 2025 | March 2025 | Q1 2025 |
Brazil: | |||
Natural gas (Mcfpd), by field: | |||
Caburé | 12,532 | 12,652 | 11,710 |
Murucututu | 945 | 1,877 | 2,093 |
Total natural gas (Mcfpd) | 13,477 | 14,529 | 13,803 |
NGLs (bopd) | 126 | 146 | 135 |
Oil (bopd) | - | 12 | 10 |
Total (boepd) – Brazil | 2,372 | 2,580 | 2,446 |
Canada: | |||
Oil (bopd) – Canada | 90 | - | - |
Total Company – boepd (1) | 2,462 | 2,580 | 2,446 |
(1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
April sales volumes in Brazil averaged 2,372 boepd, including natural gas sales of 13.5 MMcfpd and associated natural gas liquids sales from condensate of 126 bopd, based on field estimates. Murucututu sales volumes were impacted by downtime on the 183-A3 well to complete an intervention to enhance productivity through the isolation of lower intervals. In Canada , the two wells drilled in the first quarter of 2025 came on production in April (50% working interest). After the initial clean-up period, oil sales commenced contributing an additional 90 bopd net to Alvopetro in April and bringing the Company's total sales to 2,462 boepd, based on field estimates, a decrease of 5% compared to March and an increase of 1% compared to Q1.
Quarterly Natural Gas Pricing Update
Effective May 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL2.08 /m 3 , a 7% increase from the February 2025 price of BRL1.95 /m 3 . All natural gas sales from May 1, 2025 to July 31, 2025 will be sold at BRL2.08 /m 3 ( $11.09 /Mcf, net of applicable sales taxes, based on average heat content to date and the April 30, 2025 BRL/USD exchange rate of 5.66).
Development Activities - Brazil
On our 100% Murucututu natural gas field, we spud the 183-D4 well targeting the Caruaçu Formation approximately 110 metres structurally updip of our 183-A3 success. Operational challenges associated with the drilling rig led to significant delays and while drilling the main target Caruaçu intervals we became differentially stuck ultimately resulting in the loss of the bottom hole assembly. We are currently drilling a sidetrack of the lower 680 metres of the well. We estimate total costs for the project of $7.7 million , of which $3.7 million was incurred in Q1 2025.
On the unitized area (the "Unit") which includes the Caburé natural gas field, we have five development wells planned for 2025, with the first wells expected to be drilled starting this quarter.
Western Canadian Strategic Entry
On February 5, 2025 , we announced a new strategic entry into Canada (the "Farmin"). Under the Farmin we agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres of land focused on the Mannville Stack heavy oil resource in Western Saskatchewan . This is currently one of the leading plays in the Western Canadian Sedimentary Basin with high original oil place reservoirs that are being effectively exploited using open hole multilateral drilling technology. Our objective with the strategic entry into Canada was to expand our inventory of highly prospective opportunities but with a differentiated risk profile. The early results from our first two earning wells in Western Canada demonstrate this vision. Within 45 days of finalizing the Farmin, with our partner, we had obtained two well licenses, surface access, constructed two well pads and drilled two multilateral wells with a total of over 15 kilometres of open hole reservoir contact. When we completed the Farmin we had established a gross initial production rate target of 100 to 120 bopd per well. Both earning wells were on production by early April and both are exceeding our pre-Farmin expectations. We have further expanded our joint Mannville focused land base up to 15,861 acres (7,931 acres net) and are looking forward to drilling up to an additional four (2.0 net) multilateral wells through the rest of 2025.
Financial and Operating Highlights – First Quarter of 2025
- Alvopetro's updated long-term gas sales agreement came into effect on January 1, 2025 increasing our contracted firm volumes by 33%. As a result, our average daily sales increased to 2,446 boepd (1) in Q1 2025 (+44% from Q1 2024 and +41% from Q4 2024).
- Our average realized natural gas price decreased to $10.44 /Mcf in Q1 2025 (-17% from Q1 2024 and -1% from Q4 2024), due mainly to the devaluation of the BRL relative to the USD, which depreciated 18% compared to the average rate in Q1 2024. Our overall averaged realized sales price was $63.67 per boe (-16% from Q1 2024).
- With higher sales volumes, our natural gas, oil and condensate revenue increased to $14.0 million (+19% from Q1 2024 and +37% from Q4 2024).
- Our operating netback (2) in the quarter was $50.77 per boe (- $15.39 per boe from Q1 2024 and - $4.32 per boe from Q4 2024), due mainly to additional royalties in the quarter as well as lower realized sales prices. Royalties in the quarter increased to $7.60 per boe due to the recognition of additional gross-overriding royalty ("GORR") applicable on certain properties held by Alvopetro. The computation of the GORR was in dispute with the GORR holders, mainly with respect to the computation on natural gas. Subsequent to March 31, 2025 , Alvopetro received the findings of the appointed arbitral tribunal wherein the tribunal found in favour of the GORR holders. Alvopetro has estimated the additional GORR owing pursuant to the decision and recognized such amount (including inflation) as additional royalties in Q1 2025 as well as the estimated interest owing on the balance outstanding as finance expense. The computation of the additional GORR remains subject to the approval of, and adjustment by, the tribunal.
- We generated funds flows from operations (2) of $9.2 million ( $0.25 per basic share and $0.24 per diluted share), increases of $0.7 million compared to Q1 2024 and $2.3 million compared to Q4 2024 due mainly to higher sales volumes, partially offset by higher royalties and lower realized sale prices.
- We reported net income of $6.1 million , an increase of $1.5 million compared to Q1 2024 due to higher revenues and foreign exchange gains (compared to foreign exchange losses in Q1 2024), partially offset by higher royalties and higher depletion and depreciation.
- On February 5, 2025 , we announced the terms of a Canadian farmin agreement (the "Farmin"), pursuant to which Alvopetro agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres (6,122 net acres) of land in Western Saskatchewan . The two earning wells were drilled in the quarter at a total cost to Alvopetro of $2.6 million . With completion of the two earning wells, Alvopetro's working interest share is now 50%.
- Capital expenditures totaled $8.4 million , including costs for the two wells drilled in Canada , final costs on the 183-B1 re-entry, and costs associated with drilling the 183-D4 well on Alvopetro's 100% Murucututu field.
- Our working capital (2) surplus was $9.7 million as of March 31, 2025 , decreasing $3.4 million from December 31, 2024 .
(1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
(2) Refer to the sections entitled " Non-GAAP and Other Financial Measures ". |
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca .
As at and Three Months Ended March 31, | ||||||
2025 | 2024 | Change (%) | ||||
Financial | ||||||
($000s, except where noted) | ||||||
Natural gas, oil and condensate sales | 14,013 | 11,752 | 19 | |||
Net income | 6,070 | 4,550 | 33 | |||
Per share – basic ($) (1) | 0.16 | 0.12 | 33 | |||
Per share – diluted ($) (1) | 0.16 | 0.12 | 33 | |||
Cash flows from operating activities | 8,817 | 8,213 | 7 | |||
Per share – basic ($) (1) | 0.24 | 0.22 | 9 | |||
Per share – diluted ($) (1) | 0.23 | 0.22 | 5 | |||
Funds flow from operations (2) | 9,222 | 8,513 | 8 | |||
Per share – basic ($) (1) | 0.25 | 0.23 | 9 | |||
Per share – diluted ($) (1) | 0.24 | 0.23 | 4 | |||
Dividends declared | 3,643 | 3,296 | 11 | |||
Per share (1) (2) | 0.10 | 0.09 | 11 | |||
Capital expenditures | 8,375 | 2,439 | 243 | |||
Cash and cash equivalents | 17,264 | 17,450 | (1) | |||
Net working capital (2) | 9,742 | 15,047 | (35) | |||
Weighted average shares outstanding | ||||||
Basic (000s) (1) | 37,312 | 37,282 | - | |||
Diluted (000s) (1) | 37,752 | 37,693 | - | |||
As at and Three Months Ended March 31, | ||||||
2025 | 2024 | Change | ||||
Operations | ||||||
Average daily sales volumes (3) : | ||||||
Natural gas (Mcfpd), by field: | ||||||
Caburé (Mcfpd) | 11,710 | 9,236 | 27 | |||
Murucututu (Mcfpd) | 2,093 | 430 | 387 | |||
Total natural gas (Mcfpd) | 13,803 | 9,666 | 43 | |||
NGLs – condensate (bopd) | 135 | 78 | 73 | |||
Oil (bopd) | 10 | 12 | (17) | |||
Total (boepd) | 2,446 | 1,701 | 44 | |||
Average realized prices (2) : | ||||||
Natural gas ($/Mcf) | 10.44 | 12.57 | (17) | |||
NGLs – condensate ($/bbl) | 81.05 | 87.89 | (8) | |||
Oil ($/bbl) | 64.96 | 65.06 | - | |||
Total ($/boe) | 63.67 | 75.94 | (16) | |||
Operating netback ($/boe) (2) | ||||||
Realized sales price | 63.67 | 75.94 | (16) | |||
Royalties | (7.60) | (2.02) | 276 | |||
Production expenses | (5.30) | (7.76) | (32) | |||
Operating netback | 50.77 | 66.16 | (23) | |||
Operating netback margin (2) | 80 % | 87 % | (8) | |||
Notes:
(1) | Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share. |
(2) | See "Non-GAAP and Other Financial Measures" section within this news release. |
(3) | Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
Q1 2025 Results Webcast
Alvopetro will host a live webcast to discuss our Q1 2025 financial results at 8:00 am Mountain time on Thursday May 8, 2025. Details for joining the event are as follows:
DATE: May 8, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/83279531812 https://us06web.zoom.us/j/84476502014
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kcHhjt9Duj
WEBINAR ID : 844 7650 2014
The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com .
Annual General Meeting
Alvopetro's annual general and special meeting (the "Meeting") will be held on Wednesday, June 18, 2025 at the offices of Torys LLP (Suite 4600, 525 8 th SW, Calgary, Alberta ) beginning at 9:30 a.m. Mountain time. The management information circular and all related materials will be available on our website and www.sedarplus.ca later this month.
All interested parties are invited to attend the Meeting. We will also be broadcasting the meeting via live webcast for the interest of all shareholders. Please be advised that shareholders will not be able to vote any shares through this webcast format. Details for joining the event are as follows:
DATE: June 18, 2025
TIME : 9:30 AM Mountain/ 11:30 AM Eastern
LINK: https://us06web.zoom.us/j/83279531812 https://us06web.zoom.us/j/89512204386
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kenh5nLlte
WEBINAR ID : 895 1220 4386
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Abbreviations:
$000s | = | thousands of U.S. dollars |
boepd | = | barrels of oil equivalent ("boe") per day |
bopd | = | barrels of oil and/or natural gas liquids (condensate) per day |
BRL | = | Brazilian Real |
Mcf | = | thousand cubic feet |
Mcfpd | = | thousand cubic feet per day |
MMcf | = | million cubic feet |
MMcfpd | = | million cubic feet per day |
NGLs | = | natural gas liquids (condensate) |
Q1 2024 | = | three months ended March 31, 2024 |
Q1 2025 | = | three months ended March 31, 2025 |
Q4 2024 | = | three months ended December 31, 2024 |
USD | = | United States dollars |
GAAP or IFRS | = | IFRS Accounting Standards |
Non-GAAP and Other Financial Measures
This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the " Non-GAAP Measures and Other Financial Measures " section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca .
Non-GAAP Financial Measures
Operating Netback
Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.
Non-GAAP Financial Ratios
Operating Netback per boe
Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.
Operating netback margin
Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
Three Months Ended March 31, | ||||
2025 | 2024 | |||
Operating netback - $ per boe | 50.77 | 66.16 | ||
Average realized price - $ per boe | 63.67 | 75.94 | ||
Operating netback margin | 80 % | 87 % | ||
Funds Flow from Operations Per Share
Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:
Three Months Ended March 31, | ||||
$ per share | 2025 | 2024 | ||
Per basic share: | ||||
Cash flows from operating activities | 0.24 | 0.22 | ||
Funds flow from operations | 0.25 | 0.23 | ||
Per diluted share: | ||||
Cash flows from operating activities | 0.23 | 0.22 | ||
Funds flow from operations | 0.24 | 0.23 | ||
Capital Management Measures
Funds Flow from Operations
Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
Three Months Ended March 31, | ||||
2025 | 2024 | |||
Cash flows from operating activities | 8,817 | 8,213 | ||
Changes in non-cash working capital | 405 | 300 | ||
Funds flow from operations | 9,222 | 8,513 | ||
Net Working Capital
Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:
As at March 31 | |||
2025 | 2024 | ||
Total current assets | 25,090 | 24,149 | |
Total current liabilities | (15,348) | (9,102) | |
Net working capital | 9,742 | 15,047 | |
Supplementary Financial Measures
" Average realized natural gas price - $/Mcf " is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes.
" Average realized NGL – condensate price - $/bbl " is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate.
" Average realized oil price - $/bbl " is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes.
" Average realized price - $/boe " is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Dividends per share " is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.
" Royalties per boe " is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Production expenses per boe " is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
BOE Disclosure
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Contracted Natural Gas Volumes
The 2025 contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 /d (13.1MMcfpd).
Well Results
There is no representation by Alvopetro that the information contained in this news release with respect to initial production data from the wells drilled in Canada is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.
Forward-Looking Statements and Cautionary Language
This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, future production and sales volumes, plans relating to the Company's operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, the anticipated outcome of the GORR dispute, the timing and taxation of dividends and plans for dividends in the future, anticipated timing for upcoming drilling and testing of other wells, and projected financial results. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Alvopetro Energy Ltd.
View original content: http://www.newswire.ca/en/releases/archive/May2025/07/c6827.html
News Provided by Canada Newswire via QuoteMedia
Oil and Gas Price Update: Q1 2025 in Review
“The macroeconomic conditions that underpin our oil demand projections deteriorated over the past month as trade tensions escalated between the United States and several other countries,” a March oil market report from the International Energy Agency (IEA) notes, highlighting the downside risks of US tariffs and retaliatory measures.
The instability and weaker-than-expected consumption from advanced and developing economies prompted the IEA to downgrade its growth estimates for Q4 2024 and Q1 2025 to about 1.2 million barrels per day.
Despite the uncertain outlook, an announcement that OPEC+ would extend a 2.2 million barrel per day production cut into Q2 added some support to the market amid global growth concerns and rising output in the US.
Prices spiked at the end of March, pushing both benchmarks to within a dollar of their 2025 start values. However, the rally was short-lived and prices had plummeted by April 9.
WTI price performance, December 31, 2024, to April 23, 2025.
Chart via the Investing News Network.
Sinking to four year lows, Brent and WTI fell below the critical US$60 threshold, reaching US$58.62 (Brent) and US$55.38 (WTI), levels not seen since April 2021. The decline saw prices shed more than 21 percent between January and April, shaking the market along with investor confidence.
“We're into supply destruction territory for some of the high-cost producers,” Ole Hansen, head of commodity strategy at Saxo Bank, told the Investing News Network. “It will not play out today or tomorrow, because a lot of these producers are forward hedging as part of their production.”
Watch Hansen discuss where oil and other commodities are heading.
According to Hansen, if prices remain in the high US$50 range, US production will likely decrease, aiding in a broader market realignment. "Eventually we will see production start to slow in the US, probably other places as well, and that will help balance the market,” the expert explained in the interview. “Helping to offset some of the risk related to recession, but also some of the production increases that we're seeing from OPEC.”
In early April, OPEC+ did an about face when it announced plans for a significant increase in oil production, marking its first output hike since 2022. The group plans to add 411,000 barrels per day to the market starting in May, effectively accelerating its previous strategy of gradual supply increases.
Although the group cited “supporting market stability” as the reason behind the increase, some analysts believe the decision was punitively targeted at countries like Iraq and Kazakhstan, which consistently exceed production quotas.
“(The increase) is basically in order to punish some of the over-producers,” said Hansen. He went on to explain that Kazakhstan produced 400,000 barrels beyond its quota.
If these countries return to their agreed limits, OPEC’s planned production hikes could be offset.
At the same time, US sanctions on Iran and Venezuela may tighten global supply further, while a growing military presence in the Middle East also signals rising geopolitical risks, particularly involving Iran.
Oil price forecast for 2025
Hansen expects oil prices to fluctuate between US$60 and US$80 for the rest of the year.
“(I am) struggling to see prices collapse much further than that, simply because it will have a counterproductive impact on supply and that will eventually help stabilize prices,” he said.
Hansen’s projections fall in line with data from the US Energy Information Administration (EIA). The organization downgraded the US$74 Brent price forecast it set in March to US$68 in April.
The EIA foresees US and global oil production to continue rising in 2025, as OPEC+ speeds up its planned output increases and US energy remains exempt from new tariffs.
Starting mid-year, global oil inventories are projected to build. However, the EIA warns that economic uncertainty could dampen demand growth for petroleum products, potentially falling short of earlier forecasts.
“The combination of growing supply and lower demand leads EIA to expect the Brent crude oil price to average less than US$70 per barrel in 2025 and fall to an average of just over US$60 per barrel in 2026,” its April report reads.
Supply concerns add tailwinds for natural gas
On the natural gas side, Q1 was marked by tight conditions amid rising demand. A colder-than-normal winter led to increased consumption, with US natural gas withdrawals in Q1 exceeding the five year average.
Starting the year at US$3.59 per metric million British thermal units, prices rose to a year-to-date high of US$4.51 on March 10. Values pulled back to the US$4.09 level by the end of Q1, registering a 13.9 percent increase.
"Cold weather during January and February led to increased natural gas consumption and large natural gas withdrawals from inventories,” a March report from the EIA explains.
Natural gas price performance, December 31, 2024, to April 23, 2025.
Chart via the Investing News Network.
“(The) EIA now expects natural gas inventories to fall below 1.7 trillion cubic feet at the end of March, which is 10 percent below the previous five-year average and 6 percent less natural gas in storage for that time of year than EIA had expected last month," the document continues.
Natural gas price forecast for 2025
After record-setting demand growth in 2024, the natural gas market is expected to stay tight in 2025 amid market expansion from Asian countries. The IEA also anticipates price volatility brought on by geopolitical tensions.
“Though the halt of Russian piped gas transit via Ukraine on 1 January 2025 does not pose an imminent supply security risk for the European Union, it could increase liquefied natural gas (LNG) import requirements and tighten market fundamentals in 2025,” the organization notes in a Q1 natural gas market report.
Although the market is seen staying tight, the IEA is calling for growth in global natural gas demand to slow to below 2 percent in 2025. Similar to 2024’s trajectory, this growth is set to be largely driven by Asia, which is expected to account for almost 45 percent of incremental demand for natural gas.
The US-based EIA has a more optimistic outlook for the domestic natural gas sector, projecting that the annual demand growth rate for 2025 will be 4 percent. “This increase is led by an 18 percent increase in exports and a 9 percent increase in residential and commercial consumption for space heating,” an April EIA market overview states.
The report attributes the expected export growth to increased LNG shipments out of two new LNG export facilities.
Venture Global's (NYSE:VG) Plaquemines LNG facility in Louisiana commenced production in December 2024, and is currently in the commissioning phase. Once fully operational, it is expected to have a capacity of 20 million metric tons per annum. The facility has entered into binding long-term sales agreements for its full capacity.
Golden Pass LNG, a joint venture between ExxonMobil (NYSE:XOM) and state-owned QatarEnergy, is under construction in Sabine Pass, Texas. The project has faced delays due to a key contractor's bankruptcy, with Train 1 now expected to be operational by late 2025. Golden Pass LNG will have an export capacity of up to 18.1 million metric tons per annum.
The EIA forecasts that natural gas prices will average US$4.30 in 2025, a US$2.10 increase from 2024. Looking at 2026, the EIA anticipates a more modest increase to US$4.60.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Jupiter Energy
Investor Insight
Jupiter Energy’s strong cash flow, substantial proven recoverable reserves, and strategic foothold in resource-rich Kazakhstan present a compelling investment opportunity. Its commitment to sustainability—reinforced by a recent strategic investment in 100 percent gas utilization infrastructure—further enhances its long-term investor appeal.
Overview
Jupiter Energy Limited (ASX:JPR) is an established oil exploration and production company that operates three oilfields in Kazakhstan. The company is currently producing approximately 600 to 700 barrels of oil per day from its licensed fields, having successfully navigated Kazakhstan’s regulatory and operational landscape since 2008. Its operations are fully compliant, with its three full commercial production licenses secured until 2045/46/46.
Jupiter Energy is recognized as a reliable operator in Kazakhstan, holding 100 percent ownership of its licenses, which span approximately 123 sq km in the oil-rich Mangistau region. Strategically located near the port city of Aktau, its license area benefits from proximity to established oil processing facilities and extensive oil and gas infrastructure, including key pipeline connections to the country’s major refineries (see Figure 1).
The company has successfully navigated regulatory requirements to achieve full commercial production across its three oilfields—Akkar East, Akkar North (East Block), and West Zhetybai—all operating under 25-year commercial licenses. Jupiter’s strong compliance and operational framework reinforce its commitment to long-term, sustainable production in Kazakhstan.
Jupiter Energy’s reserve base has been independently confirmed by a Sproule International competent person’s report (CPR), effective 31 December 2023, detailing significant recoverable reserves.
According to the Sproule International CPR, released in January 2024, Jupiter Energy’s recoverable reserves under the SPE/PRMS classification are as follows:
- 1P Reserves: 14.691 million barrels (mmbbls)
- 2P Reserves: 36.487 mmbbls
- 3P Reserves: 46.796 mmbbls
These figures confirm Jupiter’s substantial reserve base, and correlate with its Kazakh State Approved Reserves which are recorded at approximately 52 mmbbls recoverable (using the GOST C1 + C2 classification methodology) (see Figure 2).
Figure 1: Total reserves for the Mangistau basin are estimated to be in excess of 5 billion barrels including two large oil fields, Uzen and Zhetybai.
On November 15, 2024, Jupiter Energy announced the completion of its gas pipeline integration project, connecting the Akkar East and Akkar North (East Block) oilfields to neighboring gas utilization facilities operated by its larger neighbour, MangistauMunaiGas (MMG). This integration ensures 100 percent utilization of all its associated gas, aligning with Kazakhstan’s environmental goals and enabling the Company to drill further wells whilst continuing to comply with Kazakhstan’s strict 100% gas utilisation policy.
The company plans to connect the West Zhetybai oilfield to this infrastructure as this oilfield is further developed. This project strengthens Jupiter’s relationships with MMG and the Kazakh Ministry of Energy, facilitating long-term production under its commercial licenses and enabling it to sell its oil into both the Kazakh domestic market as well as international oil markets.
Company Highlights
- Operating in Kazakhstan since 2008, with three oilfields under licence. The area is known as Block 36 (formerly Block 31).
- Holds commercial production licenses for all three of its oilfields, valid until 2045/2046/2046.
- Current production is approximately 640 barrels per day from four production wells, with plans to increase to approximately 1,000 barrels per day during 2025, with the drilling of a new production well (assuming success).
- Recent independent after-tax NPV of the oilfields (using a 20 percent discount) of US$180 million. This compares favourably to the Company’s current EV of approximately AU$63.5 million (~US$38 million) – based on a share price of AU$0.03 and balance sheet debt of ~$US15.1m.
- Operates in West Kazakhstan in the Mangistau region, a proven area for Kazakhstan’s oil reserves (see Figure 1).
- The company is cash flow positive at an operational level.
- Key shareholders include long term holders, Waterford (60 percent) and Blackbird Trust (21 percent).
- Jupiter’s recent strategic investment in its onfield gas utilisation infrastructure, signifies its commitment to sustainable operations, contribution to the welfare of the local community and support for Kazakhstan’s longer term commitment to a carbon free operating environment in the oil local industry.
Key Project: Block 36
Figure 2: Outline of Jupiter Energy’s oilfields located on Block 36
Block 36 is Jupiter Energy’s flagship project located in the Mangistau Basin of West Kazakhstan. Covering an area of approximately 123 sq km, it lies in a highly prospective region with proven oil reserves. The company acquired extensive 3D seismic data over the entire block and surrounding areas, totaling 235 sq km, which then enabled the identification of multiple drilling targets. The current reserve base covers 35 sq km, with further exploration targets available for drilling on the licence area, when funding for further exploration wells is available.
Jupiter has drilled nine wells on Block 36, targeting the Akkar North (East Block), Akkar East, and West Zhetybai oilfields (see Figure 3). The current production from Block 36 is approximately 640 barrels of oil per day, with plans to increase output to around 1,000 barrels per day during 2025, assuming success with the drilling of a new production well in 2H 2025. Further increases in production may also come via the workovers of existing wells and the drilling of further new wells, planned from 2025 to 2030.
Figure 3: Well locations on Block 36
At the helm of Jupiter Energy is a highly experienced corporate and technical leadership team, driving the company towards achieving its goals and increasing shareholder value.
Management Team
Geoff Gander - Chairman and CEO
Geoff Gander graduated from the University of Western Australia in 1984, where he completed a Bachelor of Commerce degree. He has been involved in the listing and running of public companies since 1994. He was appointed as a director of Jupiter Energy in January 2005 and he is currently responsible for the overall operational leadership of the company, as well as investor relations and group corporate development.
Baltabek Kuandykov - Non-executive Director
Baltabek Kuandykov is currently the president of Meridian Petroleum, a privately held Kazakh oil & gas company. He was formerly the president of Nelson Resources, an oil development and production company operating in Kazakhstan which was listed on the Toronto Stock Exchange until its acquisition by Lukoil in 2005. Kuandykov has considerable experience in the oil and gas industry in the region, having served as president of Kazakhoil (predecessor of the Kazakh State oil company KazMunaiGas), and is a well-respected consultant to Chevron Overseas Petroleum on CIS projects. He also worked in a senior capacity for Kazneftegazrazvedka and was president of Kazakhstancaspishelf. Kuandykov has extensive government experience in Kazakhstan, having served as deputy minister of geology, head of the oil and gas directorate at the Ministry of Geology, and was deputy minister of energy and fuel resources.
Alexey Kruzhkov - Non-executive Director
Alexey Kruzhkov holds an engineering degree and an MBA with over 10 years’ experience working in the investment industry, focusing primarily on the oil & gas, mining and real estate sectors. He has served as a director on the boards of companies listed in Canada and Norway. He is a member of the executive team of Waterford Finance and Investment Limited. He holds British and Russian citizenship.
Alexander Kuzev - Non-executive Director
Alexander Kuzev is an oil industry professional with over 26 years of experience. Most of his career has been spent working in the Former Soviet Union with much of that time responsible for the overall management of field operations with a focus on production sustainability, technology and field maintenance. He brings an important technical advisory skill set to the Jupiter Energy board, as well as in-country experience, having been involved with various Kazakhstan-based oil and gas operations since the late 1990s.
Keith Martens - Non-executive Director
Keith Martens has over 40 years’ experience as an oil finder and manager around the world. He has served as a technical advisor and consultant to a number of Australian oil & gas companies, and was instrumental in the discovery of Jupiter’s Akkar East and West Zhetybai oil fields when he was consulting to Jupiter Energy between 2007 and 2014. More recently, Martens has been working on the Eastern Margin of the Permian Basin in Texas with Winchester Energy and in the Paradox Basin in Utah and Colorado, as both lead explorationist and non-executive chairman of ASX listed Grand Gulf Energy (ASX:GGE).First Helium Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects