First Helium proposes acquisition of Worsley shallow heavy oil assets
First Helium has agreed to acquire selected shallow heavy oil assets in Alberta’s Worsley area, with closing conditional on regulatory approvals, financing, licence transfers and security requirements.
First Helium Inc. has entered into a definitive purchase and sale agreement to acquire selected shallow heavy oil assets in the Worsley area of northern Alberta. The proposed transaction, being pursued through wholly owned subsidiary First Helium Alberta Inc., remains subject to regulatory approvals, financing, licence transfers and other conditions.
The assets include a shut-in shallow heavy oil pool, petroleum and natural gas rights, related facilities and associated interests. First Helium said the pool has historic productive capacity of approximately 450 to 500 bbl/d.
The company has identified a reactivation opportunity targeting approximately 300 bbl/d from six existing wells. It said production could reach approximately 400 bbl/d through additional well reactivations.
The acquisition covers approximately 3,360 acres of 100% working interest lands attributed to the pool and a total of 5,760 net acres. First Helium also identified 11 new development drilling locations on the current land base, along with approximately 6,200 acres of available lands for potential expansion. The release separately describes the expansion area as approximately 9¾ sections of land.
Existing oil production and water-handling infrastructure is expected by First Helium to support development of the assets. The company also said selected pool-wide waterflood optimisation is expected to support higher recoveries.
First Helium said its objective is to increase production within two years using modest incremental capital and internally generated cash flow. These plans involve forward-looking statements and remain subject to the risks and uncertainties identified by the company.
The proposed acquisition is intended to complement First Helium’s Charlie Lake shallow heavy oil project. At Charlie Lake, the company plans to apply multi-leg horizontal drilling technology, beginning with a well from the existing 1-30 surface location and facilities. Depending on success, First Helium has identified over 30 follow-up drilling locations across 10 sections of land.
The agreement has an effective date of January 1, 2026. First Helium will assume the asset retirement obligations liability associated with the acquired assets and post a specified ARO security deposit under the agreement.
Closing is conditional on regulatory approvals, including approval from the TSX Venture Exchange, completion of financing and licence transfers with the Alberta Energy Regulator. The AER transfers include posting the security required to secure the company’s ARO associated with the acquired assets. The transaction also requires First Helium to satisfy additional Vendor security requirements. Customary adjustments and escrowed closing mechanics apply, and further transaction terms are set out in the agreement.
The total amount of the ARO Security Requirements, inclusive of the purchase consideration agreed between First Helium and the Vendor, is approximately $7.8 million, subject to review by the AER.
First Helium said no Finders' fees are payable by the company and that it will not issue securities to the Vendor in connection with the agreement.
For TSX Venture Exchange filing requirements, First Helium has engaged Sproule ERCE to prepare an NI 51-101 compliant evaluation using the standards outlined in the Canadian Oil and Gas Evaluation Handbook. Sproule ERCE is independent of both First Helium and the Vendor.
The company is pursuing a corporate repositioning strategy centred on shallow heavy oil development in Worsley while retaining the option to develop its helium-enriched natural gas assets. First Helium said it is targeting approximately 2,000 bbl/d within two years as part of that strategy. That target is a company plan and is subject to operational, financing, regulatory and other risks.
First Helium holds more than 30,000 acres along the Worsley Trend in northern Alberta. Its identified assets and activities include the 7-30 shallow heavy oil discovery, the 15-25 helium discovery, the 1-30 and 4-29 light oil wells, and the 5-27 helium-enriched natural gas evaluation well.
First Helium said its forward-looking statements rely on management assumptions and may be affected by oil and gas operating hazards, differences between estimated and actual development plans or costs, permit and regulatory requirements, environmental risks, financing availability, infrastructure constraints, energy-price and input availability changes, equipment and labour shortages, title issues, weather conditions, reliance on contractors and other parties, and competition.
The company stated that actual results could materially differ from those projected and that it has no obligation to update forward-looking information except as required by law.
First Helium has agreed to acquire selected shallow heavy oil assets in the Worsley area through its wholly owned subsidiary, First Helium Alberta Inc.
The assets include approximately 3,360 acres of 100% working interest lands attributed to the pool and a total of 5,760 net acres.
The company has identified a reactivation opportunity targeting approximately 300 bbl/d from six wells, with potential to reach approximately 400 bbl/d through additional reactivations.
Closing requires regulatory approvals, financing, AER licence transfers, ARO security and additional Vendor security requirements.
The total ARO Security Requirements, inclusive of the purchase consideration, is approximately $7.8 million, subject to review by the AER.
First Helium announced that its wholly owned subsidiary, First Helium Alberta Inc., had entered into a definitive purchase and sale agreement with an arm’s-length third party to acquire selected shallow heavy oil assets in the Worsley area of Alberta. Closing remains subject to regulatory approvals, financing, licence transfers and other conditions set out in the agreement.
First Helium is proposing to acquire a shut-in shallow heavy oil pool, petroleum and natural gas rights, associated facilities and related interests in its core Worsley area. The assets include approximately 3,360 acres of 100% working interest lands attributed to the pool and a total of 5,760 net acres.
First Helium has identified a reactivation opportunity targeting approximately 300 bbl/d from six existing wells, with the potential to increase production to approximately 400 bbl/d through additional well reactivations. The pool has historic productive capacity of approximately 450 to 500 bbl/d, according to the company’s release.
First Helium has identified 11 new development drilling locations on the current land base and approximately 6,200 acres of available lands for potential expansion. The release also refers to approximately 9¾ sections of available land.
First Helium says the acquired assets include existing oil production and water-handling infrastructure that is expected to support lower-cost development. The company also says selected pool-wide waterflood optimisation is expected to support higher recoveries.
The agreement has an effective date of January 1, 2026, and First Helium will assume the asset retirement obligations liability associated with the acquired assets. The total amount of the ARO Security Requirements, inclusive of the purchase consideration, is approximately $7.8 million, subject to review by the Alberta Energy Regulator.
Closing is subject to regulatory approvals, including approval from the TSX Venture Exchange, completion of financing, and licence transfers with the Alberta Energy Regulator. First Helium must also post the security required by the AER for its asset retirement obligations and satisfy additional Vendor security requirements, with customary adjustments and escrowed closing mechanics applying.
President and CEO Ed Bereznicki said the acquisition provides an opportunity to add near-term heavy oil production in the Worsley area and expand development opportunities. He also said the assets are expected to leverage the company’s regional operating knowledge and existing Worsley footprint, while noting that the company intends to pursue disciplined production growth with modest incremental capital.
First Helium says its objective is to increase production within two years using modest incremental capital and internally generated cash flow. As part of its corporate repositioning strategy, the company is targeting approximately 2,000 bbl/d within two years, while stating that it will continue to pursue opportunities for its helium-enriched natural gas assets.
First Helium says the acquisition is expected to complement its existing Charlie Lake shallow heavy oil project by adding nearby production, infrastructure and development opportunities. The company plans to apply multi-leg horizontal drilling technology at Charlie Lake, beginning with a well drilled from the existing 1-30 surface location and facilities.
First Helium is pursuing a shallow heavy oil growth strategy in the Worsley area while preserving the option to develop its helium-enriched natural gas assets. The company holds more than 30,000 acres along the Worsley Trend in northern Alberta and has identified oil, helium and helium-enriched natural gas wells and follow-up drilling locations there.
First Helium shares are identified in the release as trading on the TSX Venture Exchange under TSXV:HELI, on the OTCQB under OTCQB:FHELF and on the Frankfurt Stock Exchange under FRA:2MC.
First Helium has engaged Sproule ERCE, an independent qualified reserves evaluator, to prepare an NI 51-101 compliant evaluation for the TSXV filing requirements. The proposed transaction will also require the stated regulatory approvals, financing, licence transfers, ARO security and additional Vendor security requirements before closing.
First Helium says its forward-looking statements depend on management assumptions and involve risks including oil and gas operating and development hazards, differences between actual and estimated costs or extraction plans, financing availability, permits and regulatory requirements, environmental risks, input-price and supply fluctuations, infrastructure constraints, title challenges and adverse weather. The company states that actual results could materially differ from those projected and that it has no obligation to update the forward-looking information except as required by law.