Investor Perception
First Helium’s scalable improvement technique, differentiated by a multi-commodity method and supported by a well-defined undertaking roadmap, positions it as a possible chief in helium manufacturing inside North America.
Overview
First Helium (TSXV:HELI,OTCQB:FHELF,FRA:2MC) is a Canadian firm specializing in exploring and growing helium assets in Alberta, Canada. The corporate’s main asset is the Worsley undertaking, which spans 53,000 acres and consists of each helium-enriched pure gasoline, oil and different pure assets. First Helium has made vital progress with a number of discoveries, together with a helium discovery properly and profitable oil wells. The corporate goals to develop its manufacturing and money circulation by way of ongoing exploration and drilling actions.
First Helium is poised for substantial progress within the coming years, with the scalability of the Worsley undertaking offering a path to vital will increase in manufacturing and income. The corporate has set bold monetary objectives, concentrating on over $100 million in annual income inside the subsequent three to 5 years. Based mostly on present projections, vertical drilling alone might generate over $100 million in annual income, with money circulation estimated to succeed in $70 million yearly.
Helium, a important and scarce useful resource, is indispensable in varied high-tech industries, together with semiconductor manufacturing, synthetic intelligence, area exploration, protection and healthcare. Helium’s demand is projected to develop 300 % by 2030, pushed by its irreplaceable position in industries that require precision, cooling and inert properties. Main firms like Google, Amazon, SpaceX, NVIDIA and Intel depend on helium for his or her operations. The worldwide helium market, valued at $3.94 billion in 2021, is anticipated to develop to $13.26 billion by 2030.
Nonetheless, the availability of helium is beneath stress attributable to geopolitical uncertainties and manufacturing limitations from main world suppliers, together with Qatar, Algeria and Russia. Moreover, the US, at the moment the most important producer of helium, is anticipated to change into a internet importer inside the subsequent three to 5 years. This shift opens vital alternatives for Canada, which is the fifth-largest world useful resource of helium however contributes lower than 2 % of the world’s annual manufacturing. The Canadian authorities has additionally categorized helium as a important mineral, underscoring its strategic significance within the transition to a sustainable future.
This world dynamic is creating alternatives for helium explorers akin to First Helium to leverage a rising market. Led by an skilled administration and technical workforce with profitable observe data within the oil and gasoline, mining and vitality sectors, First Helium is well-placed for vital progress.
First Helium’s long-term imaginative and prescient is to determine a regional helium-enriched pure gasoline and oil play in Alberta, with the Worsley undertaking serving as a template for future developments. The corporate is actively evaluating potential partnerships and acquisition alternatives to speed up the event of its property and capitalize on the rising demand for helium throughout North America and globally.
Firm Highlights
- Helium is a important mineral with regular progress in demand. Main firms like Google, Amazon, SpaceX, Samsung, NVIDIA and Intel depend on it.
- Helium costs have elevated by over 50 % within the final three years and the market is anticipated to develop 300 % by 2030.
- First Helium’s indicative money netbacks are three to 4 instances larger than typical Canadian pure gasoline producers.
- First Helium affords publicity to helium, pure gasoline and oil income streams, which diversifies danger and will increase worth.
Key Mission
Worsley Helium Mission
The corporate’s 100% owned flagship Worsley undertaking, spans 53,000 acres (roughly 83 sq. miles) in a multi-commodity area of Alberta. The undertaking is situated in a traditionally productive space that has yielded over 315 billion cubic toes (Bcf) of pure gasoline and 17 million barrels of oil. The Worsley undertaking is distinguished by its vital helium assets and multi-zone drilling potential for helium, pure gasoline and oil. Worsley space has produced over 1 Bcf of helium, which was not recovered in earlier pure gasoline operations, highlighting the untapped potential of the area for helium extraction. Specifically, the deeper Leduc formation to the japanese a part of the land base stays largely unexplored attributable to larger nitrogen concentrations within the pure gasoline useful resource, which made the product unacceptable to the native gasoline pipeline transportation firm, and discouraged additional drilling by historic pure gasoline firms. This spells super exploration alternative for First Helium, as at the moment’s helium processing gear can separate helium, pure gasoline and nitrogen, leading to marketable helium and pure gasoline.
First Helium’s vertical helium discovery properly, 15-25, is able to be introduced into manufacturing and is anticipated to offer a gradual stream of helium and pure gasoline provide. Moreover, the corporate has recognized 12 follow-up vertical drilling targets, and a big structural alternative primarily based on proprietary 3D seismic information, which positions the undertaking for vital scalability.
First Helium has secured a 10-year “take-or-pay” helium offtake settlement with a serious world industrial gasoline provide firm, which might help strong and predictable money circulation. The settlement covers as much as 80 % of helium manufacturing from the Worsley undertaking’s 15-25 properly, with the potential to buy 100% of manufacturing relying on the tempo of progress. The settlement additionally offers First Helium with flexibility, permitting the corporate to market as much as 20 % of helium manufacturing on a probably extra profitable “spot” gross sales or service provider liquefaction foundation.
The Worsley undertaking space advantages from an present pure gasoline gathering infrastructure, expediting the timeline to carry helium to market. First Helium expects the primary manufacturing to start within the fourth quarter of 2025, positioning it to change into a key provider within the rising North American helium market.
Worsley undertaking indicative economics
The useful resource base of the Worsley undertaking is important. The undertaking includes one confirmed, undeveloped oil location with reserves of roughly 200,000 barrels of oil (as verified by third-party reserve engineers) and one pure gasoline/helium properly. The unrisked, finest estimate of contingent assets for this properly consists of slightly below 13 Bcf of pure gasoline and over 300 million cubic toes (MMcf) of helium. These reserves present a secure basis for the corporate’s progress, with the pure gasoline/helium manufacturing providing substantial financial upside as a result of high-value nature of helium. Helium costs have elevated by greater than 50 % over the previous three years, with world import costs rising from roughly $US 310 per thousand cubic toes (Mcf) in January 2020 to over $US 476 per Mcf by November 2023. This worth progress, mixed with helium’s important functions, underpins the sturdy economics of First Helium’s Worsley undertaking.
The corporate’s operations give attention to two key formations inside the Worsley undertaking space. The Leduc formation, identified for its helium-enriched pure gasoline and lightweight oil, affords substantial manufacturing potential. The Blue Ridge formation is one other high-margin, helium-enriched premium pure gasoline play that provides additional worth. The corporate has drilled three wells within the space, reaching 100% drilling success on two oil wells, which have collectively generated roughly $13 million in income. These outcomes spotlight the resource-rich nature of the Worsley undertaking and exhibit First Helium’s functionality to ship constant drilling success and income era. The third properly, drilled horizontally into the Blue Ridge formation, was cased, and is prepared for completion and testing. If profitable, it would set up a regional, repeatable, helium-enriched pure gasoline play.
The corporate has recognized 12 extremely potential areas for added drilling within the Leduc formation, and the profitable testing of its horizontal properly (5-27) is anticipated so as to add over 30 follow-up horizontal drill areas within the Blue Ridge formation at West Worsley, additional enhancing the dimensions of the undertaking.
Processing plant
Along side proving up further helium useful resource, the corporate can be exploring financing choices for the development of a helium processing plant, which might additional improve its manufacturing capabilities. The completion of this facility is anticipated to generate $3 to $5 million in annual project-level money circulation from the only 15-25 properly alone, setting the stage for future progress and enlargement.
Administration Group
Ed Bereznicki – President, CEO and Director
Ed Bereznicki is a extremely skilled vitality sector govt with greater than 25 years in company finance, capital markets, and M&A, focusing significantly on oil and gasoline exploration and manufacturing. He spent 15 years as a senior funding banker with companies akin to Raymond James and GMP Securities, the place he raised over $20 billion in fairness and convertible debt for vitality sector initiatives. His management roles lengthen to start-up vitality ventures, the place he has guided firms by way of IPOs, mergers and acquisitions. He has additionally dealt with danger administration, pipeline operations, and worldwide initiatives, making him an knowledgeable in main large-scale vitality and pure useful resource firms. His broad expertise throughout monetary and operational domains has contributed considerably to his means to handle advanced company progress initiatives within the helium sector.
Robert J. Scott – CFO and Director
Robert Scott is a chartered skilled accountant and a chartered monetary analyst with over 20 years {of professional} expertise in monetary administration, company compliance, and strategic enterprise planning. He has held senior administration and board positions at a number of TSX-V listed firms, the place he was instrumental in elevating greater than $200 million in fairness capital for growth-stage firms. His intensive experience covers IPOs, reverse takeovers, mergers and company restructuring. Along with company finance, he has in-depth expertise in service provider and industrial banking, which has bolstered his functionality to information firms by way of advanced monetary environments, particularly within the pure useful resource sector.
Shaun Wyzykoski – Vice-president, Engineering
Shaun Wyzykoski brings 25 years of expertise within the Canadian oil and gasoline trade, specializing in engineering, operations, acquisitions, and divestitures. He has held senior roles at a number of main vitality firms, together with chief working officer of Orlen Upstream Canada, and senior engineering positions at Fairmount Power and TriOil Assets. He was additionally a part of the founding engineering group at Crescent Level Power, one among Canada’s main oil and gasoline producers. Wyzykoski’s experience consists of designing and executing advanced operational methods to main acquisition efforts and integrating new applied sciences into exploration and manufacturing actions. His deep operational data helps him drive effectivity and innovation at First Helium.
Marc Junghans – Geology and Asset Growth Advisor
Marc Junghans is a seasoned geologist with greater than 40 years of expertise within the oil and gasoline sector, specializing in the Western Canadian Sedimentary Basin and U.S. markets. He co-founded and efficiently offered two private-equity-backed junior oil and gasoline firms, the place he served as vice-president of exploration. At Compton Petroleum, he helped develop manufacturing from 2,500 barrels of oil equal per day (boed) to 34,000 boed, main exploration efforts that considerably enhanced the corporate’s worth. He has held senior geological positions at main companies akin to Husky Oil, Anderson Exploration, Canterra Power, and Tundra Oil & Fuel. Junghans has drilled over 170 horizontal wells throughout Alberta, Saskatchewan and Manitoba, bringing invaluable technical experience to First Helium’s asset improvement technique.