First Helium has reported a shallow heavy oil discovery at its Worsley Project in Northern Alberta, Canada.
The discovery was made in the recently completed 7-30 well, which produced approximately 50 barrels of 15-degree API oil over two days following an acid stimulation, showcasing the potential for vertical well, cold flow heavy oil production.
The 7-15 well also yielded small quantities of heavy oil from the same formation without stimulation and was subsequently shut-in for further evaluation.
This discovery supports First Helium’s ongoing assessment of the heavy oil zone across its 53,000-acre Worsley land base, indicating a promising shallow heavy oil development opportunity.
In addition to the heavy oil discovery, First Helium successfully tested the Blue Ridge Formation in the 7-15 well, which flowed natural gas with a helium content of 1%.
This result confirms the eastern extension of the Blue Ridge helium-enriched natural gas regional play concept on the company’s West Worsley lands.
First Helium president & CEO Ed Bereznicki said: “Our recent drilling programme has validated what we have long understood about the multi-zone potential of our Worsley property. While our primary oil target in the Leduc formation did not test as commercially viable, our secondary target for heavy oil has exceeded our expectations for inflow of cold flow heavy oil from a vertical well bore.
“We are very excited to proceed with the development of this potentially large, shallow heavy oil play utilising contemporary horizontal drilling methods. Our initial economic analyses indicate attractive rate of return estimates for a large, lower risk development play.”
First Helium plans to utilise contemporary horizontal drilling technology to maximise oil recovery. Management estimates approximately five million barrels of original oil in place per square mile.
First Helium owns oil battery and water disposal facilities nearby, which are expected to reduce operating costs.
The company is preparing a development plan for the area and aims to bring the 7-30 heavy oil zone into production and drill a horizontal test well early in the third quarter.
“In addition to the heavy oil play, we are pleased to confirm the extension of our Blue Ridge helium enriched natural gas play to the eastern block of First Helium’s land base. This has the potential to significantly increase the size of this regional play at Worsley, making it attractive to potential partners for large scale development”, added Bereznicki.
The Blue Ridge Formation has been confirmed to extend from West Worsley to the eastern portion of First Helium’s property.
The 7-15 well gas sample analysis showed an average helium content of 1%, higher than the 0.8% results at West Worsley, indicating an increasing trend in helium content from west to east.
First Helium’s company-owned pipeline network provides an infrastructure advantage for development across Worsley.
The next steps include completing and testing the 5-27 horizontal well and preparing an area development plan with potential project partners.
In the Leduc Formation, First Helium’s recent drilling programme continues to advance its targets for light oil, natural gas and helium.
Although the 7-30 and 7-15 wells did not demonstrate commercial potential, valuable geological data was obtained to refine future targeting.
The company will incorporate this data into a new evaluation of the Leduc play.
