Did you know that helium is considered crucial to the United States’ national security?
Because of this, a strategic repository was developed in 1960 in Amarillo, Texas. This WAS the largest source of helium in the world.
But the US Bureau of Land Management sold a large portion of this helium each year to pay for the plant's debts.
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Helium is irreplaceable. Its low density means it floats away into high orbit and can’t be recovered.
Here’s some of helium's unique properties that make it critical for the modern world:
Helium is Unique, Rare & Essential for The Modern World
Helium is the 2nd smallest atom in the universe. Because of this, it's used to find microscopic leaks in ship hulls and vehicle air conditioning systems.
It’s a frictionless superfluid -- this property makes it vital in scientific research into lasers, transistors and superconductors. For instance, superfluid helium was used in a special satellite in 1983 to get information about infrared waves in space.
Helium gas expands rapidly. This provides a safer alternative than explosive propelled airbags.
Lowest Boiling & Melting point at - 272° Celsius. This means it’s liquid at near absolute zero. This enables supercooling in MRI machines and the Hadron Collider.
Amazon, Google, Facebook and Netflix all depend on helium to keep their servers cool and running around the clock.
A Helium Supply Shortage And The Rising Price of Oil Creates A Rare Opportunity For Investors In First Helium
In 2019 they stopped selling.
Here's what happened to helium prices.
In 2017 - private sale, grade A helium was $200/mcf (thousand cubic feet).
In June 2018 - $225/Mcf.
Supply squeezes are causing helium shortages, pushing prices higher each year.
The global estimated level of demand for helium is 6 bcf (BILLION cubic feet/ year). Analysts estimate global CAGR growth for helium at 7.6%.
This is an opportunity for smart resource investors.
Deposits of helium gas collect over millions of years as uranium and thorium decay and emit helium nuclei.
Usually, this helium leaks through the surface of the earth and dissipates into the atmosphere. In an economic deposit, it's trapped in sealed structures oftentimes along with methane and other gasses. Helium concentrations of 0.5% in natural gas are generally considered commercially viable.
Where are these “helium deposits”, gas reservoirs that contain helium?
The world's existing helium supplies come from Russia, Qatar and the United States.
The 5th largest prospective resource is in Canada. Low political risk makes a helium producer in Canada appealing to investors.
If you're an investor looking for intriguing opportunities, you'll want to watch pre-production companies.
Where Do You Find Helium And What Does An Economic Resource Look Like?
Enter First Helium
The only pre-production helium company with 2 producing oil wells AND an independent engineering evaluation with contingent resources and associated NPV.
These 2 producing wells have helped First Helium achieve a strong working capital position of $7 million as at June 1, 2022.
TSX-V:HELI
First Helium boasts a seasoned management team, board of directors and advisory group with successful track records in...
Oil and gas exploration and production
Capital markets and finance
Helium project development, construction and project management
First Helium is currently exploring 2 projects:
Worsley
79,000 Acres, 100% Owned
“15-25” Discovery Well Tested 1.3% Helium, Sproule Independently Evaluated
Oil Discovery Well “1-30” Onstream, Provides Cash Flow and Increases Value
Second Oil Discovery Well “4-29” Onstream, Ramping up Production.
9500 Acres of 3D seismic
Worsley Leduc Reef Trend has over 270 Leduc Formation penetrations.
Two helium extraction wells targeted for June/July 2022
Lethbridge
276,000 Acres
60% Covered by 3D Seismic
First Well Targeted for Drilling in H2-2022
Near Existing Helium Production and New Discoveries
The first well (15-25) has tested at 1.3% helium content and 65% natural gas content, which is very economical and ready to be brought into production.
Preliminary engineering is already done on a processing facility. The company is evaluating facility alternatives and helium gas offtake contracts.
First Helium management estimates annualized cash flow of approximately $8 million from the 1-30 well, increasing the potential incremental market value approximately $24 when capitalized at a 3x field level cash flow multiple.
Because the well is production tested, a resource report from Sproule (an reserve evaluation firm) valued the 15-25 well at ~$15.2 million, which represents approximately $0.21 per First Helium share.
Bringing the first helium well, into production, is one of First Helium's goals.
Exploration & Development Upside
First Helium Made Another Discovery at Worsely
The company drilled two scout wells: 1-30 and 4-29 wells. Instead of helium, the target contained oil. Sproule and Associates Ltd. also provided an NI 51-101 total proved plus probable gross reserve estimate on its oil field of 505,100 barrels. The NPV 10% of that oil is $24.6 million today. Those wells contribute a meaningful monthly cash flow to the company.
Ed Bereznicki, President & CEO of First Helium said, “The monthly cash flow from the 1-30 and 4-29 wells continue to strengthen our balance sheet and will help provide the necessary funds for planned helium exploration activities at our Worsley Property and our Southern Alberta Helium Fairway exploration land.”
Resource investors should pay attention to commodities with growing demand and shrinking supply.
Helium is that commodity.
If you want exposure, consider First Helium and join the investor list.
The next 18 months are catalyst rich and the company will be providing news updates.
The latest investor presentation, which is available for download on the website, dives into the details of the project.
AND you can request an analyst report from Cormark Securities that breaks down their reasons for a $2 near-term target price for First Helium.
Debt Free. $7M in Cash as of June 1st, 2022
Join Now While This Is On Your Mind
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FRA: 2MC
OTCQB: FHELF
Ultra-high thermal capacity enables super-conductivity. This property is critical in arc welding and accelerating the binding of certain metals.
It’s inert, meaning it won’t react with the air. This allows for the safe cleaning of rocket fuel tanks and other key processes in fibre optics and semiconductor manufacturing.
Low density - Used to float weather balloons, airships and decorative balloons.
Share Capitalization Table
As At June 1, 2022
AND feel free to request an analyst report from Cormark Securities that breaks down their reasons for a $2 near-term target price for First Helium.
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TSXV: HELI
Peer Group Comparison Highlights
“HELI” stands out from its peers with an independently-evaluated helium well, and cash flow from 2 producing oil discovery wells.
The company will continue to produce oil to fund its ongoing helium exploration activities at Worsley and Lethbridge.
As of June 1,2022