A PREMIUM HELIUM PROJECT
WORSLEY AREA
- 60,000 Acres on Core Project, 100%-Owned, multiple drill locations>/li>
- “15-25” Discovery Well Tested 1.3% Helium, 3rd Party Evaluation
- Peer-group-leading helium resource, target production H2 - 2024
- Ten-year, take-or-pay, with first 5 years firm price, helium offtake sales agreement and 20% volume availability for direct/alternative sales strategies
- “14-23” Horizontal Helium Target Sets Up Potential Regional Play
First Helium Contingent resources report | Discovery well 15-25
|
Volumes |
||
|
Helium |
Natural Gas |
Natural Gas Liquids |
|
323 |
12,632 |
372 |
|
Net Present Values |
||
|
0% |
5% |
10% |
|
$78,282 |
$32,158 |
$15,243 |
Sproule Associates Ltd. (“Sproule”) Report Unrisked Best Estimate Contingent Resources 1
- Capital required: $10.5MM for single well facility to produce Discovery Well
- Helium pricing assumption: constant $340/mcf adjusted for transportation
- Other product pricing: Sproule March 31, 2021 forecast
|
NPV 10% |
||||
|
$300 / mcf |
$340 / mcf |
$400 / mcf |
$500 / mcf |
$600 / mcf |
|
$12.1 |
$15.2 |
$19.9 |
$27.7 |
$35.5 |
Sproule Unrisked Best Estimate Contingent Resources
- Sensitivity to helium pricing prepared by First Helium Management
- Helium Prices in Canadian Dollars, Base Case $340 per mcf
1. See First Helium’s Final Prospectus dated June 28, 2021, filed on First Helium’s SEDAR profile at www.sedar.com for additional information.