First Helium Inc. announced it has commenced preparations to bring its gas gathering pipeline infrastructure into service in conjunction with the planned installation of the 15 - 25 well helium processing facility in later 2024. In addition, the Company has finished its completion plan for the horizontal helium well, drilled and cased in August 2022. The pipeline system will enable the Company to deliver natural gas sales volumes through the main natural gas sales system operated by TC Energy Corporation (formerly TransCanada Pipelines).

Natural gas liquids will be collected and trucked to regional sales terminals, and helium will be picked up at the Company's planned helium processing facility under its ten-year helium gas take-or-pay supply agreement. In addition to high probability oil targets, First Helium is targeting natural gas pools containing helium, similar to the historical pools found on the western part of the Worsley Trend. Based on an example from publicly available industry data, a single gas pool, the Leduc D3-D Pool, approximately 25 km west of First Helium's 15-25 well, produced 46 billion cubic feet ("Bcf") of natural gas with approximately 1.0% helium content, over a period of roughly 12 years.

Management estimates that the value of the helium produced from this single pool would be approximately $230 million at a price of $500 per thousand cubic feet ("mcf") of helium. The Company currently has an inventory of 15 identified multi-zone drilling locations plus multiple follow-ups, all located on the Company's 100%-owned 60,000-acre land base. Management estimates that a successful ten-well program targeting Leduc natural gas with helium content, with anticipated individual well results similar to the 15-25 helium well, could result in total annual revenue exceeding $100 million within five years.

As evaluated by the Company's independent evaluator, Sproule Associates Ltd., the 15-25 helium well is expected to provide a low decline, long life stream of natural gas production with helium content and natural gas liquids, all of which will be captured and sold to generate revenue for the Company. In the Leduc Formation along the Worsley Trend, nitrogen and helium concentrations increase from west to east. East of First Helium's 15 -25 discovery well, exploration for natural gas had been effectively deterred by the high nitrogen content of the gas as nitrogen decreases heating value and marketability of natural gas.

Today, the ability to install modular facilities to remove nitrogen and separate the helium content for sale supports the project economics of drilling these wells. Increasing helium content, and access to existing gas gathering infrastructure makes this an extremely attractive area for future helium drilling.