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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.
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First Helium
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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.
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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.
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Charbone Hydrogene annonce les resultats financiers T1 2025
(TheNewswire)
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Brossard (Québec) TheNewswire - le 30 mai 2025 - CORPORATION CHARBONE HYDROGÈNE (TSXV: CH OTCQB: CHHYF, FSE: K47 ) (« Charbone » ou la « Société »), la seule compagnie d'Amérique du Nord cotée en bourse axée sur la production et la distribution d'hydrogène vert, annonce aujourd'hui ses résultats financiers et opérationnels pour la période de trois mois se terminant le 31 mars 2025.
Tous les permis nécessaires à la construction de l'usine de Sorel-Tracy ont été obtenus et Hydro-Québec, le distributeur d'énergie provincial, travail à compléter l'interconnexion, ce qui permettra au projet de respecter l'échéancier de production de 2025.
FAITS SAILLANTS T1 2025:
Les flux de trésorerie négatifs liés aux activités d'exploitation ont diminué de 7 % pour atteindre 620 097 $ au premier trimestre de 2025, contre 663 843 $ au premier trimestre de 2024 (activités toujours en resserrement des frais généraux et administratifs).
Les revenus ont diminué à 5 067 $ au premier trimestre de 2025, contre 81 637$ au premier trimestre de 2024 (générés par l'acquisition de Wolf River le 1 er décembre 2022). Il y a une réduction temporaire des services à la centrale à la suite d'une panne d'équipement, qui sera réparée avec une capacité accrue.
La Société a clôturé des actions pour le règlement de dettes au management de 310 000 $ et des exercices de bons de souscription totalisant 293 270 $ (10 000 $ en T1 2024).
La Société a annoncé la signature d'une convention de financement pour une facilité de capital de construction pouvant atteindre 50 millions de dollars américains ; et
La Société a annoncé avoir signé une entente d'approvisionnement avec un producteur américain de gaz industriels de premier plan afin d'élargir son offre aux clients et de générer des revenus immédiats à partir d'une source diversifiée.
La gestion financière rigoureuse de Charbone et ses nouveaux partenariats stratégiques lui permettent de concrétiser sa vision : devenir un leader nord-américain des réseaux de distribution d'hydrogène vert et de gaz industriels. Ces avancées soulignent sa volonté de jouer un rôle moteur dans la transition énergétique.
" La direction est motivée à poursuivre ses efforts pour faire avancer et achever le(s) projet(s) annoncé(s) avec une structure administrative allégée , a déclaré Benoit Veilleux, Chef de la direction financière et secrétaire corporatif de Charbone. " Avec la signature d'une entente de principe sur le financement du capital de construction et sujet à l'achèvement du développement des projets, Charbone dispose désormais d'un partenaire pour déployer et livrer son/ses projet(s) actuel(s) et d'un potentiel de croissance à court terme. "
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À propos de Charbone Hydrogène Corporation
Charbone est une entreprise intégrée d'hydrogène vert disposant de capacités stratégiques de distribution de gaz industriels en Amérique du Nord. Tout en poursuivant le développement de son réseau modulaire de production d'hydrogène vert, Charbone s'appuie également sur des partenariats commerciaux pour fournir de l'hydrogène, de l'hélium et d'autres gaz industriels sans les exigences en capital élevées des usines de production. Cette approche améliore les sources de revenus, réduit les risques opérationnels et accroît la flexibilité sur le marché. Charbone reste la seule société purement axée sur l'hydrogène vert cotée en bourse en Amérique du Nord, avec des actions cotées à la Bourse de croissance TSX (TSXV: CH); sur les marchés OTC (OTCQB: CHHYF); et à la Bourse de Francfort (FSE: K47). Pour plus d'informations, visiter www.charbone.com .
Énoncés prospectifs
Le présent communiqué de presse contient des énoncés qui constituent de « l'information prospective » au sens des lois canadiennes sur les valeurs mobilières (« déclarations prospectives »). Ces déclarations prospectives sont souvent identifiées par des mots tels que « a l'intention », « anticipe », « s'attend à », « croit », « planifie », « probable », ou des mots similaires. Les déclarations prospectives reflètent les attentes, estimations ou projections respectives de la direction de Charbone concernant les résultats ou événements futurs, sur la base des opinions, hypothèses et estimations considérées comme raisonnables par la direction à la date à laquelle les déclarations sont faites. Bien que Charbone estime que les attentes exprimées dans les déclarations prospectives sont raisonnables, les déclarations prospectives comportent des risques et des incertitudes, et il ne faut pas se fier indûment aux déclarations prospectives, car des facteurs inconnus ou imprévisibles pourraient faire en sorte que les résultats réels soient sensiblement différents de ceux exprimés dans les déclarations prospectives. Des risques et des incertitudes liés aux activités de Charbone peuvent avoir une incidence sur les déclarations prospectives. Ces risques, incertitudes et hypothèses comprennent, sans s'y limiter, ceux décrits à la rubrique « Facteurs de risque » dans la déclaration de changement à l'inscription de la Société datée du 31 mars 2022, qui peut être consultée sur SEDAR à l'adresse www.sedar.com; ils pourraient faire en sorte que les événements ou les résultats réels diffèrent sensiblement de ceux prévus dans les déclarations prospectives.
Sauf si les lois sur les valeurs mobilières applicables l'exigent, Charbone ne s'engage pas à mettre à jour ni à réviser les déclarations prospectives.
Ni la Bourse de croissance TSX ni son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX) n'acceptent de responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.
Pour contacter Corporation Charbone Hydrogène :
Téléphone bureau: +1 450 678 7171 | ||
Courriel: ir@charbone.com Benoit Veilleux Chef de la direction financière et secrétaire corporatif |
Copyright (c) 2025 TheNewswire - All rights reserved.
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Charbone Hydrogen Announces Q1 2025 Financial Results
(TheNewswire)
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Brossard, Quebec TheNewswire - May 30, 2025 Charbone Hydrogen Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) (the "Company" or "CHARBONE"), North America's sole publicly traded pure-play company focused on green hydrogen production and distribution, today announces its financial and operational results for the three-month period ending March 31, 2025.
All necessary permits for the construction of the Sorel-Tracy facility have been secured, and Hydro-Québec, the provincial energy distributor, is working towards completing the interconnection, keeping the project on schedule for 2025 production.
Q1 2025 HIGHLIGHTS:
Negative cash flows from operating activities decreased by 7% to $620,097 in Q1 2025, down from $663,843 in Q1 2024 (activities still tightening general and administrative expenses).
Revenue decreased to $5,067 in Q1 2025, down from $81,637 in Q1 2024 (generated from the Wolf River acquisition on December 1, 2022). There is a temporary reduction in services at the dam following an equipment failure, which will be repaired with increased capacity.
The Company has closed shares for the management debt settlement of $310,000 and exercises of warrants totaling $293,270 ($10,000 in Q1 2024).
The Company announced the signing of a term sheet for a construction capital facility of up to US $50 million; and
The Company announced it has executed an offtake agreement with a US Tier One industrial gases producer to expand its offerings to customers and generate immediate revenues from a diversified source.
Charbone's disciplined financial management and new strategic partnerships position the company to achieve its vision of becoming a North American leader in green hydrogen and industrial gases distribution networks. These advancements underscore its commitment to being a game-changer in the energy transition.
Management is motivated to continue its efforts to advance and complete the announced project(s) with a lean administrative structure," said Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE . "With the construction capital facility term sheet in place and subject to completing project development activities, CHARBONE now has a partner to deploy and deliver its current project(s) and a growth potential in the short term. "
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About Charbone Hydrogen Corporation
CHARBONE is an integrated green hydrogen company with strategic distribution capabilities of industrial gases across North America. While continuing to develop its modular green hydrogen production network, CHARBONE also leverages commercial partnerships to supply hydrogen, helium, and other industrial gases without the capital-intensive requirements of production facilities. This approach enhances revenue streams, reduces operational risks, and increases market flexibility. CHARBONE remains North America's only publicly traded pure-play green hydrogen company, with shares listed on the TSX Venture Exchange (TSXV: CH), the OTC Markets (OTCQB: CHHYF), and the Frankfurt Stock Exchange (FSE: K47). For more information, visit www.charbone.com .
Forward-Looking Statements
This news release contains statements that are "forward-looking information" as defined under Canadian securities laws ("forward-looking statements"). These forward-looking statements are often identified by words such as "intends", "anticipates", "expects", "believes", "plans", "likely", or similar words. The forward-looking statements reflect management's expectations, estimates, or projections concerning future results or events, based on the opinions, assumptions and estimates considered reasonable by management at the date the statements are made. Although Charbone believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on forward-looking statements, as unknown or unpredictable factors could cause actual results to be materially different from those reflected in the forward-looking statements. The forward-looking statements may be affected by risks and uncertainties in the business of Charbone. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Corporation's Filing Statement dated March 31, 2022, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements.
Except as required under applicable securities legislation, Charbone undertakes no obligation to publicly update or revise forward-looking information.
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 .
Contact Charbone Hydrogen Corporation | |
Telephone: +1 450 678 7171 | |
Email: ir@charbone.com Benoit Veilleux CFO and Corporate Secretary | |
Copyright (c) 2025 TheNewswire - All rights reserved.
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Coelacanth Announces Q1 2025 Financial and Operating Results
Coelacanth Energy Inc. (TSXV: CEI) ("Coelacanth" or the "Company") is pleased to announce its financial and operating results for the three months ended March 30, 2025. All dollar figures are Canadian dollars unless otherwise noted.
| FINANCIAL RESULTS | Three Months Ended | ||||||||
| March 31 | |||||||||
| ($000s, except per share amounts) | 2025 | 2024 | % Change | ||||||
| Oil and natural gas sales | 2,666 | 3,666 | (27 | ) | |||||
| Cash flow from operating activities | 981 | 3,256 | (70 | ) | |||||
| Per share - basic and diluted (1) | - | 0.01 | (100 | ) | |||||
| Adjusted funds flow (used) (1) | (1,440 | ) | 1,078 | (234 | ) | ||||
| Per share - basic and diluted | (- | ) | - | (- | ) | ||||
| Net loss | (3,617 | ) | (1,201 | ) | 201 | ||||
| Per share - basic and diluted | (0.01 | ) | (- | ) | 100 | ||||
| Capital expenditures (1) | 25,701 | 1,263 | 1,935 | ||||||
| Adjusted working capital (deficiency) (1) | (25,710 | ) | 67,139 | (138 | ) | ||||
| Common shares outstanding (000s) | |||||||||
| Weighted average - basic and diluted | 531,445 | 529,196 | - | ||||||
| End of period - basic | 532,202 | 529,392 | 1 | ||||||
| End of period - fully diluted | 624,877 | 618,165 | 1 | ||||||
(1) See "Non-GAAP and Other Financial Measures" section.
| Three Months Ended | |||||||||
| OPERATING RESULTS (1) | March 31 | ||||||||
| 2025 | 2024 | % Change | |||||||
| Daily production (2) | |||||||||
| Oil and condensate (bbls/d) | 184 | 300 | (39 | ) | |||||
| Other NGLs (bbls/d) | 25 | 37 | (32 | ) | |||||
| Oil and NGLs (bbls/d) | 209 | 337 | (38 | ) | |||||
| Natural gas (mcf/d) | 3,311 | 3,934 | (16 | ) | |||||
| Oil equivalent (boe/d) | 761 | 993 | (23 | ) | |||||
| Oil and natural gas sales | |||||||||
| Oil and condensate ($/bbl) | 90.21 | 85.30 | 6 | ||||||
| Other NGLs ($/bbl) | 38.01 | 34.79 | 9 | ||||||
| Oil and NGLs ($/bbl) | 84.03 | 79.82 | 5 | ||||||
| Natural gas ($/mcf) | 3.65 | 3.40 | 7 | ||||||
| Oil equivalent ($/boe) | 38.94 | 40.57 | (4 | ) | |||||
| Royalties | |||||||||
| Oil and NGLs ($/bbl) | 15.95 | 20.77 | (23 | ) | |||||
| Natural gas ($/mcf) | 0.64 | 0.51 | 25 | ||||||
| Oil equivalent ($/boe) | 7.18 | 9.08 | (21 | ) | |||||
| Operating expenses | |||||||||
| Oil and NGLs ($/bbl) | 10.63 | 9.89 | 7 | ||||||
| Natural gas ($/mcf) | 1.77 | 1.65 | 7 | ||||||
| Oil equivalent ($/boe) | 10.63 | 9.89 | 7 | ||||||
| Net transportation expenses (3) | |||||||||
| Oil and NGLs ($/bbl) | 2.27 | 2.45 | (7 | ) | |||||
| Natural gas ($/mcf) | 0.78 | 0.68 | 15 | ||||||
| Oil equivalent ($/boe) | 4.00 | 3.54 | 13 | ||||||
| Operating netback (3) | |||||||||
| Oil and NGLs ($/bbl) | 55.18 | 46.71 | 18 | ||||||
| Natural gas ($/mcf) | 0.46 | 0.56 | (18 | ) | |||||
| Oil equivalent ($/boe) | 17.13 | 18.06 | (5 | ) | |||||
| Depletion and depreciation ($/boe) | (14.30 | ) | (14.42 | ) | (1 | ) | |||
| General and administrative expenses ($/boe) | (21.76 | ) | (13.86 | ) | 57 | ||||
| Share based compensation ($/boe) | (18.46 | ) | (10.11 | ) | 83 | ||||
| Finance expense ($/boe) | (12.86 | ) | (1.06 | ) | 1,113 | ||||
| Finance income ($/boe) | 1.46 | 10.60 | (86 | ) | |||||
| Unutilized transportation ($/boe) | (4.05 | ) | (2.49 | ) | 63 | ||||
| Net loss ($/boe) | (52.84 | ) | (13.28 | ) | 298 | ||||
(1) See "Oil and Gas Terms" section.
(2) See "Product Types" section.
(3) See "Non-GAAP and Other Financial Measures" section.
Selected financial and operational information outlined in this news release should be read in conjunction with Coelacanth's unaudited condensed interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2025, which are available for review under the Company's profile on SEDAR+ at www.sedarplus.ca.
OPERATIONS UPDATE
Coelacanth has reached a major milestone in its development with the completion of the Two Rivers East facility (the "Facility"). The Facility was completed on budget and has moved to the testing and start-up phase. The capacity of the Facility is currently 8,000 boe/d but will be expanded in Q4 2025 to 16,000 boe/d with added compression. We expect production to start flowing imminently from the 5-19 pad and ramp up through the summer. As previously released, the 5-19 pad has 9 wells that tested over 11,000 boe/d (1) that will be brought on systematically to approach the phase I capacity of the plant prior to further drilling.
Over the next few years, Coelacanth will continue with its business plan that incorporates:
- Systematically developing the resource using pad development and horizontal multi-frac technology to increase production and maximize cash flow and investment returns.
- Delineating the lands with vertical and horizontal wells to help in quantifying and understanding the commerciality of its large Montney resource base that includes up to four Montney benches over its 150 contiguous sections of land.
- Developing and licensing a flexible infrastructure plan that will allow for the resource to be scaled to a much larger production base.
Coelacanth has licensed additional locations on the 5-19 pad, is in the process of licensing additional development pads, delineation locations and additional infrastructure to grow beyond current plant capacity. While commodity prices and available capital will dictate the pace of execution of the business plan, we are very pleased with the results to date and look forward to reporting on new developments as they arise.
(1) See "Test Results and Initial Production Rates" section for more details.
OIL AND GAS TERMS
The Company uses the following frequently recurring oil and gas industry terms in the news release:
Liquids
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
| Condensate | Pentane and heavier hydrocarbons |
Natural Gas
| Mcf | Thousands of cubic feet |
| Mcf/d | Thousands of cubic feet per day |
| MMcf/d | Millions of cubic feet per day |
| MMbtu | Million of British thermal units |
| MMbtu/d | Million of British thermal units per day |
Oil Equivalent
| Boe | Barrels of oil equivalent |
| Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
NON-GAAP AND OTHER FINANCIAL MEASURES
This news release refers to certain measures that are not determined in accordance with IFRS (or "GAAP"). These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of the Company's performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency to better analyze the Company's performance against prior periods on a comparable basis.
Non-GAAP Financial Measures
Adjusted funds flow (used)
Management uses adjusted funds flow (used) to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and abandonment obligations and to repay debt, if any. Adjusted funds flow (used) is a non-GAAP financial measure and has been defined by the Company as cash flow from operating activities excluding the change in non-cash working capital related to operating activities, movements in restricted cash deposits and expenditures on decommissioning obligations. Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating the Company's cash flows. Adjusted funds flow (used) is reconciled from cash flow from operating activities as follows:
| Three Months Ended | |||||||||
| March 31 | |||||||||
| ($000s) | 2025 | 2024 | % Change | ||||||
| Cash flow from operating activities | 981 | 3,256 | (70 | ) | |||||
| Add (deduct): | |||||||||
| Decommissioning expenditures | 139 | 148 | (6 | ) | |||||
| Change in restricted cash deposits | - | 424 | (100 | ) | |||||
| Change in non-cash working capital | (2,560 | ) | (2,750 | ) | (7 | ) | |||
| Adjusted funds flow (used) (non-GAAP) | (1,440 | ) | 1,078 | (234 | ) | ||||
Net transportation expenses
Management considers net transportation expenses an important measure as it demonstrates the cost of utilized transportation related to the Company's production. Net transportation expenses is calculated as transportation expenses less unutilized transportation and is calculated as follows:
| Three Months Ended | ||||||
| March 31 | ||||||
| ($000s) | 2025 | 2024 | ||||
| Transportation expenses | 551 | 545 | ||||
| Unutilized transportation | (277 | ) | (225 | ) | ||
| Net transportation expenses (non-GAAP) | 274 | 320 | ||||
Operating netback
Management considers operating netback an important measure as it demonstrates its profitability relative to current commodity prices. Operating netback is calculated as oil and natural gas sales less royalties, operating expenses, and net transportation expenses and is calculated as follows:
| Three Months Ended | ||||||
| March 31 | ||||||
| ($000s) | 2025 | 2024 | ||||
| Oil and natural gas sales | 2,666 | 3,666 | ||||
| Royalties | (491 | ) | (821 | ) | ||
| Operating expenses | (728 | ) | (894 | ) | ||
| Net transportation expenses | (274 | ) | (320 | ) | ||
| Operating netback (non-GAAP) | 1,173 | 1,631 | ||||
Capital expenditures
Coelacanth utilizes capital expenditures as a measure of capital investment on property, plant, and equipment, exploration and evaluation assets and property acquisitions compared to its annual budgeted capital expenditures. Capital expenditures are calculated as follows:
| Three Months Ended | ||||||
| March 31 | ||||||
| ($000s) | 2025 | 2024 | ||||
| Capital expenditures – property, plant, and equipment | 668 | 393 | ||||
| Capital expenditures – exploration and evaluation assets | 25,033 | 870 | ||||
| Capital expenditures (non-GAAP) | 25,701 | 1,263 | ||||
Capital Management Measures
Adjusted working capital
Management uses adjusted working capital (deficiency) as a measure to assess the Company's financial position. Adjusted working capital is calculated as current assets and restricted cash deposits less current liabilities, excluding the current portion of decommissioning obligations.
| ($000s) | March 31, 2025 | December 31, 2024 | ||||
| Current assets | 3,431 | 11,579 | ||||
| Less: | ||||||
| Current liabilities | (36,009 | ) | (37,234 | ) | ||
| Working capital deficiency | (32,578 | ) | (25,655 | ) | ||
| Add: | ||||||
| Restricted cash deposits | 4,900 | 4,900 | ||||
| Current portion of decommissioning obligations | 1,968 | 2,118 | ||||
| Adjusted working capital deficiency (Capital management measure) | (25,710 | ) | (18,637 | ) | ||
Non-GAAP Financial Ratios
Adjusted Funds Flow (Used) per Share
Adjusted funds flow (used) per share is a non-GAAP financial ratio, calculated using adjusted funds flow (used) and the same weighted average basic and diluted shares used in calculating net loss per share.
Net transportation expenses per boe
The Company utilizes net transportation expenses per boe to assess the per unit cost of utilized transportation related to the Company's production. Net transportation expenses per boe is calculated as net transportation expenses divided by total production for the applicable period.
Operating netback per boe
The Company utilizes operating netback per boe to assess the operating performance of its petroleum and natural gas assets on a per unit of production basis. Operating netback per boe is calculated as operating netback divided by total production for the applicable period.
Supplementary Financial Measures
The supplementary financial measures used in this news release (primarily average sales price per product type and certain per boe and per share figures) are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP.
PRODUCT TYPES
The Company uses the following references to sales volumes in the news release:
Natural gas refers to shale gas
Oil and condensate refers to condensate and tight oil combined
Other NGLs refers to butane, propane and ethane combined
Oil and NGLs refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent.
The following is a complete breakdown of sales volumes for applicable periods by specific product types of shale gas, tight oil, and NGLs:
| Three Months Ended | ||
| March 31 | ||
| Sales Volumes by Product Type | 2025 | 2024 |
| Condensate (bbls/d) | 18 | 19 |
| Other NGLs (bbls/d) | 25 | 37 |
| NGLs (bbls/d) | 43 | 56 |
| Tight oil (bbls/d) | 166 | 281 |
| Condensate (bbls/d) | 18 | 19 |
| Oil and condensate (bbls/d) | 184 | 300 |
| Other NGLs (bbls/d) | 25 | 37 |
| Oil and NGLs (bbls/d) | 209 | 337 |
| Shale gas (mcf/d) | 3,311 | 3,934 |
| Natural gas (mcf/d) | 3,311 | 3,934 |
| Oil equivalent (boe/d) | 761 | 993 |
TEST RESULTS AND INITIAL PRODUCTION RATES
The 5-19 Lower Montney well was production tested for 9.4 days and produced at an average rate of 377 bbl/d oil and 2,202 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The A5-19 Basal Montney well was production tested for 5.9 days and produced at an average rate of 117 bbl/d oil and 630 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The B5-19 Upper Montney well was production tested for 6.3 days and produced at an average rate of 92 bbl/d oil and 2,100 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The C5-19 Lower Montney well was production tested for 5.8 days and produced at an average rate of 736 bbl/d oil and 2,660 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The D5-19 Lower Montney well was production tested for 12.6 days and produced at an average rate of 170 bbl/d oil and 580 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The E5-19 Lower Montney well was production tested for 11.4 days and produced at an average rate of 312 bbl/d oil and 890 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure was stable, and production was starting to decline.
The F5-19 Lower Montney well was production tested for 4.9 days and produced at an average rate of 728 bbl/d oil and 1,607 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The G5-19 Lower Montney well was production tested for 7.1 days and produced at an average rate of 415 bbl/d oil and 1,489 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The H5-19 Lower Montney well was production tested for 8.1 days and produced at an average rate of 411 bbl/d oil and 1,166 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure was stable and production was starting to decline.
A pressure transient analysis or well-test interpretation has not been carried out on these nine wells and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery.
Any references to peak rates, test rates, IP30, IP90, IP180 or initial production rates or declines are useful for confirming the presence of hydrocarbons, however, such rates and declines are not determinative of the rates at which such wells will continue production and decline thereafter and are not indicative of long-term performance or ultimate recovery. IP30 is defined as an average production rate over 30 consecutive days, IP90 is defined as an average production rate over 90 consecutive days and IP180 is defined as an average production rate over 180 consecutive days. Readers are cautioned not to place reliance on such rates in calculating aggregate production for the Company.
FORWARD-LOOKING INFORMATION
This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's oil and condensate, other NGLs, and natural gas production, capital programs, and adjusted working capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as 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 estimates and projections relating to production rates, costs, and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty, and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Coelacanth is an oil and natural gas company, actively engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern British Columbia, Canada.
Further Information
For additional information, please contact:
Coelacanth Energy Inc.
Suite 2110, 530 - 8th Avenue SW
Calgary, Alberta T2P 3S8
Phone: (403) 705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial Officer
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 release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253761
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