Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
First Helium (TSXV: HELI) announced that it has received its license from the Alberta Energy Regulator to drill its second exploration well, the “4-29”, which is located on First Helium’s 100% owned, 79,000 acre Worsley landholdings in Northern Alberta.
“Identified by a comprehensive 3D seismic study, the “4-29″ well location at Worsley will be drilled as a follow up to our successful 1-30 well, targeting multiple helium gas horizons and potential oil accumulations,” CEO Ed Bereznicki said in a media release. “Drilling 4-29 is an opportunity to build on the strong results from the 15-25 and 1-30 discovery wells, which collectively represent significant growth potential and underlying asset value.”
The 4-29 well is located near the company’s 1-30 light oil discovery well, and approximately 3 km SE of the 15-25 helium well on the core Worsley Property. A geologic and seismic review of the region suggests that like the 1-30 and 15-25, the 4-29 prospect presents as a structural high on the Leduc Reef Complex, the company said.
The 1-30 light oil discovery well tested at approximately 419 barrels of 35 degree API light oil over 3 days and is expected to be brought on-stream in early February at approximately 400 barrels per day.
The 15-25 was most recently tested last month to contain 1.3% helium content based on a 10-day flow period at 2 million cubic feet per day of raw gas. The raw gas stream is comprised of approximately 65% natural gas, which will be produced along with the helium gas, sold to market and also used to generate power for facility operations.
The 1-30 Leduc well was drilled based on a detailed 3D seismic evaluation of the Worsley Property. The results confirm First Helium’s geologic model for the area. Based on the Company’s assessment of economic Leduc wells along the Worsley Trend, approximately 20% have been light oil producers, the balance have been natural gas producers containing potential economic helium content.
A detailed geological and geophysical evaluation of lands in the vicinity of the 15-25 well, the 1-30 well, and along the broader Worsley Trend has yielded additional compelling drill targets, the company said, adding that it will incorporate the results from the drilling and testing of the 4-29 well to strategically pursue new drilling locations across the 90 km wide Worsley Trend.
The company expects to begin drilling operations in mid-February.
