The Albany Gazette - First Helium Announces Strategic Shallow Heavy Oil Acquisition

CALGARY, AB / ACCESS Newswire / October 14, 2026 / First Helium Inc. ("First Helium" or the "Company") (TSXV:HELI)(OTCQB:FHELF)(FRA:2MC) today announced that the Company, via its wholly-owned subsidiary First Helium Alberta Inc., has entered into a definitive purchase and sale agreement (the "Agreement") with an arm's length third party (the "Vendor") to acquire select shallow heavy oil assets in the Company's core Worsley area, north of Grande Prairie, Alberta, Canada.

Acquisition Highlights

• Existing shut-in shallow heavy oil pool with significant remaining recoverable oil potential
• Reactivation opportunity targeting approximately 300 barrels of oil per day ("bbl/d") from six wells and up to 400 bbl/d through additional reactivations¹
• Eleven identified horizontal drilling locations supporting low-risk growth opportunity²
• Existing oil production and water-handling infrastructure expected to support lower-cost development
• The acquisition includes approximately 3,360 acres of 100% working interest lands attributed to the pool (as mapped²). Total land: 5,760 net acres.
• The pool will be operated by First Helium
• Expansion potential across approximately 6,200 acres of available lands²
• Complementary to the Company's existing Charlie Lake Shallow Heavy Oil project

"This transformational acquisition provides a compelling opportunity to add near-term heavy oil production in our core Worsley area and expand our inventory of development opportunities in a play we know well," said Ed Bereznicki, President and CEO of First Helium. "With existing wells, infrastructure and identified horizontal drilling locations, the assets offer scale and a clear path to meaningful cash flow growth while complementing our broader oil and helium development strategy."

The acquired assets include a shut-in shallow heavy oil pool with historic productive capacity of approximately 450 to 500 bbl/d¹. 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 reactivations¹.

The Company has also identified 11 new development drilling locations on the current land base where modern multi-leg horizontal drilling technology can be applied to improve on the pool's legacy single and dual-leg horizontal development². First Helium's objective is to increase production within two years using modest incremental capital and internally generated cash flow². In addition to new drilling, selected pool wide waterflood optimization is expected to support higher recoveries². The acquisition is expected to be highly synergistic with First Helium's existing Worsley operations and Charlie Lake shallow heavy oil play and provides potential expansion upside through approximately 9¾ sections of available land.

"Importantly, the acquisition is expected to leverage our regional operating knowledge and existing Worsley footprint, including our Charlie Lake shallow heavy oil discovery, to pursue disciplined production growth with modest incremental capital," added Mr. Bereznicki. "The combination of reactivation potential, additional drilling locations, waterflood upside and nearby expansion lands gives First Helium multiple avenues to create value for shareholders."

Transaction Details

The Vendor has agreed to sell specified Worsley-area oil and gas assets to First Helium with an effective date of January 1, 2026. The Company will assume the asset retirement obligations ("ARO") liability associated with the acquired assets and post a specified ARO security deposit in accordance with the Agreement. The transaction includes petroleum and natural gas rights, associated facilities and related interests, subject to customary adjustments and escrowed closing mechanics. Closing is subject to regulatory approvals (including the approval of the TSX Venture Exchange ("TSXV")), completion of financing, and license transfers with the Alberta Energy Regulator ("AER") (including the posting of such security required by the AER to secure the Company's ARO associated with the acquired assets), and the satisfaction of additional Vendor security requirements (together, the "ARO Security Requirements"). The total amount of the ARO Security Requirements, inclusive of the purchase consideration, agreed to between the Company and the Vendor, as specified in the Agreement, is approximately $7.8 million, subject to review by the AER. To meet the filing requirements of the TSXV, the Company has engaged Sproule ERCE, independent qualified reserves evaluator, to prepare an NI 51-101 compliant evaluation utilizing the standards outlined in the Canadian Oil and Gas Evaluation Handbook ("COGEH"). Sproule ERCE is independent to both the Company and the Vendor. No Finders' fees are payable by the Company, nor will the Company be issuing any securities to the Vendor in connection with the Agreement

Existing Charlie Lake Shallow Heavy Oil Project

The acquisition is expected to complement First Helium's existing Charlie Lake shallow heavy oil play by adding nearby production, infrastructure and development opportunities that support the Company's broader Worsley growth strategy.

First Helium's Charlie Lake development program is supported by encouraging results from the 7-30 discovery well and nearby drilling, together with historical offset data identifying the formation as a viable heavy oil target. The Company plans to apply proven multi-leg horizontal drilling technology, beginning with a well drilled from the existing 1-30 surface location and facilities. Depending on success, the Company has identified over 30 follow-up drilling locations across 10 sections of land².

Ongoing Strategic Initiatives

First Helium is advancing a corporate repositioning strategy focused on shallow heavy oil development at Worsley, supported by its recent Charlie Lake discovery and the proposed strategic production acquisition. The plan includes recapitalizing the Company, shifting the Company's Senior oil and gas technical team's focus, and applying multi-leg horizontal drilling technology to target approximately 2,000 bbl/d within two years², while continuing to pursue value-creation opportunities for its helium-enriched natural gas assets.

"Our focus remains on advancing our assets in a disciplined manner while positioning the Company to capitalize on evolving global energy dynamics," added Mr. Bereznicki.

Notes:

1. Based on actual historical oil & gas production data, reported by Vendor on a well-by-well basis to the Government of Alberta, in connection with regulatory production reporting requirements, via the Alberta Energy Regulator (AER), as at March 2020, and as sourced by the Company via geoSCOUT by geoLOGIC Systems.
2. Management Estimates based on Management Evaluation, April 2025 to October 2026.

Figure 1 - Worsley Core Area

ABOUT FIRST HELIUM

Led by a senior executive team with extensive experience in oil and gas exploration and operations, mining, finance and capital markets, First Helium is pursuing a shallow heavy oil growth strategy while preserving the option to develop its premium North American helium-enriched natural gas assets.

First Helium holds more than 30,000 acres along the highly prospective Worsley Trend in northern Alberta, which has been the focus of the Company's exploration and development drilling activities.

Building on its 7-30 shallow heavy oil discovery, 15-25 helium discovery, 1-30 and 4-29 light oil wells, and 5-27 helium-enriched natural gas evaluation well, the Company has identified follow-up drilling locations and acquired infrastructure to support future development at Worsley. Cash flow from the Company's Worsley oil wells has helped advance its ongoing exploration and development strategy.

For more information about the Company, please visit www.firsthelium.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Edward J. Bereznicki
President, CEO and Director

CONTACT INFORMATION

First Helium Inc.
Investor Relations
Email: [email protected]
Phone: 1-833-HELIUM1 (1-833-435-4861)

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This news release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to recoverable oil potential, costs related to reactivate opportunities, potential extraction rates, and future extraction plans relating to the shallow heavy oil assets to be acquired by the Company. Statements contained in this release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of the Company. Such statements can generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All statements that describe the Company's plans relating to operations and potential strategic opportunities are forward-looking statements under applicable securities laws. These statements address future events and conditions and are reliant on assumptions made by the Company's management, and so involve inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canadian securities regulators, including without limitation, the dangers inherent in oil and gas operations, development and extraction activities; actual extraction or development plans and costs differing materially from the Company's estimates; the ability to obtain and maintain any necessary permits, consents or authorizations required for oil and gas activities; environmental regulations or hazards and compliance with complex regulations associated with oil and gas activities; climate change and climate change regulations; fluctuations in exchange rates; the availability of financing; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for oil and gas operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory or political risks; the reliance upon contractors or third parties; challenges to title; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; and competition with other oil and gas companies. As a result of these risks and uncertainties, and the assumptions underlying the forward-looking information, actual results could materially differ from those currently projected, and there is no representation by the Company that the actual results realized in the future will be the same in whole or in part as those presented herein. the Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on the Company and the risks and challenges of its business, investors should review the Company's filings that are available at www.sedarplus.ca.

SOURCE: First Helium Inc

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(K.Jones--TAG)