Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Investor Presentation (October 2023)
34 slides from Blue Star Helium's investor presentation, Oct 16, 2023
Slide 1: Advanced Primary Helium Opportunity
ADVANCED PRIMARY HELIUM OPPORTUNITY Strategic early-mover in the world’s largest helium market Successful low cost, high impact exploration results Developing multiple discoveries at Voyager, Galactica & Pegasus High grade helium exploration portfolio large resource upside Visit bluestarhelium.com A
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION The material in this presentation has been prepared by Blue Star Helium Limited (ACN Prospective Resources 009 230 835)(“Company”). Net Recoverable Helium (MMcf) 1U (P90) 2U (P50) 3U (P10) This presentation may not be reproduced, redistributed or passed on, direc
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT CLEAN CAPITAL STRUCTURE SUPPORTIVE SHAREHOLDER BASE Board & Management 3.7 % ASX Ticker BNL Top 20 35.6 % OTCQB ticker BSNLF As at 31 August 2023 Share price (ASX close, 10 Oct 23) 2.7 ¢ Issued share capital 1,586 MM EXPERIENCED BOARD AND MANAGEMENT Options 43.4 MM Performance Rig
Slide 4: Blue Star: Advanced Primary Helium Opportunity
BLUE STAR: ADVANCED PRIMARY HELIUM OPPORTUNITY DEFINED PATHWAY TO PRODUCTION: High-grade Voyager discovery (643 MMcf contingent helium resource) targeting first helium output in Q4 2023 via initial midstream solution; Galactica/Pegasus targeted for first production end 2024 LOW CAPITAL AND HIGH RETU
Slide 5: Strategically Located Assets
STRATEGICALLY LOCATED ASSETS Exxon La Barge, WY ▪ Blue Star’s high helium grade Paradox Tumbleweed assets, proximate to key Resources Cheyenne Wells, CO La Sal, UT Messer infrastructure and downstream Otis, KS helium purification and consumers ▪ Local infrastructure currently under utilised Praxair
Slide 6: Las Animas: Premier US Helium Assets
LAS ANIMAS: PREMIER US HELIUM ASSETS… Extensive landholding and prospect portfolio in highly prospective location Developing discoveries at Voyager, Galactica & Pegasus 643 MMCF Contingent helium resources (Voyager) 13.4 BCF Prospective helium resources ▪ Strategic, large-scale land position secured
Slide 7: With Best-in-Class Helium Concentrations
0% 1% 2% 3% 4% 5% 7% 8% 6% 9% Voyager Prospect (US) +8% Tocito Dome (US) 7% Tacitus Galactica Prospect (US) 6% Holbrook Basin (US) Desert Mountain 6% Dineh Bi Keyah (US) 5% Nasco AG Galactica Prospect (US) 4% Concho Dome (US) 4% Petrosun Pegasus Prospect (US) 3% Ladder Creek (US) 3% Tumbleweed Midst
Slide 8: Helium Uses, Demand, Supply & Market
HELIUM USES, DEMAND, SUPPLY & MARKET Healthcare, electronics, aerospace, research and high-tech manufacturing Strong demand continues despite long term structural under supply in all markets and segments driving increased pricing, particularly for US domestic sources 8
Slide 9: Current Helium Uses
2 He 4.002602 CURRENT HELIUM USES Helium is a modern technology enabler Helium Aerospace/aircraft Healthcare Electronics/semiconductors Space flight Heliox breathing mixtures Fibre optics Helium in breathing mixtures assists with breathing Used in the manufacturing process and for cooling systems du
Slide 10: Helium Demand 2-6% p.a.
Global share of helium applications HELIUM Cryogenics / MRI Lifting DEMAND Electronics, Fiber Optics & Semiconductors Other Pressurisation & Purging Breathing Analytics Leak detection An enabler of innovation, Welding helium is essential for key existing and future technology development 3% 6% 8% 6%
Slide 11: Structural Undersupply in the U.S.
STRUCTURAL UNDERSUPPLY IN THE U.S… Growing helium shortage DOMESTIC SUPPLY CHALLENGES ▪ U.S. supply structurally weakened by elimination of U.S. strategic reserve (BLM) Current Status: ▪ Supply now critically strained from recent further interruptions globally Supply challenged ▪ Most worldwide He s
Slide 12: ...Has Seen Strong Recent Price Momentum
…HAS SEEN STRONG RECENT PRICE MOMENTUM Supply shocks and scarcity have delivered fly-up increases in market helium prices ▪ Scarcity of supply has $5,000 caused sharp increases in BLM Average Price Royal Helium pricing $4,500 Air Products Private Gaseous Helium (Avg) Spot Price (RHS) China* ▪ Curren
Slide 13: Voyager Maiden Development
VOYAGER MAIDEN DEVELOPMENT LOW-COST, WELL-DEFINED COMMERCIALISATION PATHWAY Up to 20 well development 13
Slide 14: Voyager: A Premium Initial Helium Development
VOYAGER: A PREMIUM INITIAL HELIUM DEVELOPMENT First helium output target Q4 2023 First helium Targeting output targeted Processing premium short for Q4 CY2023 capacity readily term and spot Low upfront scalable by market prices project addition of Midstream Gas processing development membranes / Dis
Slide 15: The Voyager Helium Development
THE VOYAGER HELIUM DEVELOPMENT High-grade helium discovery appraisal and development Discovered resource 643 MMcf (2C) Up to 20 well development ▪ BBB#1 well discovery at Voyager prospect in Nov 2021; calculated air-free gas concentration of 8.8% helium in a 134ft gas column discovered in the Lyons
Slide 16: Voyager Development Metrics
VOYAGER DEVELOPMENT METRICS Midstream development pathway adopted – low capital and high returns ▪ First development well to Plant metrics Unit Value commence drilling Q4 23; Nameplate raw gas input MMcf/d 2.0 pressure/flow testing to follow Helium recovery % 90 ▪ Processing facility: Helium product
Slide 17: Refined Production Process
REFINED PRODUCTION PROCESS World-class extraction methodology and helium value chain Ongoing offtake discussions across the value chain Helium US$450-$750/mcf Helium US$1,000-$3,000/mcf
Slide 18: The Voyager Helium Development
THE VOYAGER HELIUM DEVELOPMENT Plan of development schematic 18
Slide 19: Marketing Strategy
MARKETING STRATEGY Premium short term and spot market target to deliver optimal, price-of-the-day buyers Leasing option avoids substantial debt Current short term and spot tube Strategy delivers flexible access to funding and undesirable execution of trailer pricing quotes substantially premium heli
Slide 20: Voyager: Moving to First Helium
VOYAGER: MOVING TO FIRST HELIUM Evaluation and commercialisation timeline 2 development In-fill leasing Q4 2023 wells approved H1 2024 Voyager helium processing agreement Drilling Optimise signed development production wells Further 4 development wells passed technical review, approval hearing Infil
Slide 21: Voyager – Model Dome Cross Section
VOYAGER – MODEL DOME CROSS SECTION VOYAGER Model Dome 8.8% He 8% He ▪ Voyager on same regional structure, 6 miles north of historic Model Dome field analogue (average 8% helium production) ▪ BBB WW#1 intersected 134ft of high- quality Lyons reservoir with calculated air-free gas concentration of 8.8
Slide 22: Galactica / Pegasus Project: The Next Stage
GALACTICA / PEGASUS PROJECT: THE NEXT STAGE DE-RISKED, LARGE-SCALE, MULTI- PRODUCT DEVELOPMENT Potential 30+ well development 22
Slide 23: The Galactica/Pegasus Development Area
THE GALACTICA/PEGASUS DEVELOPMENT AREA De-risked, large scale, multi-product development Potential 30+ well development ▪ Helium discoveries in JXSN#1, #2, #3 and JXSN#4; gas bearing columns of up to 230 feet and up to 6% He ▪ Confirmed previous interpretations of gas on historical well logs at Dent
Slide 24: The Next Development
THE NEXT DEVELOPMENT Commercialising Galactica/Pegasus Potential 30+ well development Current Evaluation Workstreams Larger-scale project with • Further engineering and market work underway to refine planned multiple potential product development configuration and forecast helium and CO2 streams pro
Slide 25: Galactica / Pegasus Cross Section
GALACTICA / PEGASUS CROSS SECTION 7% He? 3% He 6-4% He ▪ 4 Helium discoveries in JXSN#1 - #4; gas bearing columns of up to 230 feet and up to 6% He ▪ JXSN well flow rates as high as 412 Mcf/d ▪ Further de-risked by 2 adjacent Red Rocks production wells flowing approx. 6% He into and IACX facility fo
Slide 26: Exploration Upside
EXPLORATION UPSIDE LARGE-SCALE, MULTIPLE PLAY POTENTIAL 26
Slide 27: Blue Star's Las Animas Leasehold
BLUE STAR’s LAS ANIMAS LEASEHOLD 2023: advance exploration portfolio, new mapping, additional independent prospective resource evaluations 2024: Anticipated exploration drilling YAMATO of high ranked prospects GALACTICA/ DEFIANT PEGASUS 8.8% He CO2 RED DWARF ENTERPRISE 8.8% He VOYAGER 3.1% He 4-6% H
Slide 28: Substantial Shallow Resources & Deep Play Potential
SUBSTANTIAL SHALLOW RESOURCES & DEEP PLAY POTENTIAL 8.8% He 8% He 7% He 3% He X X X X CO2 X N2 X X X X X N2 X N2 N2 X X X X N2 N2 X XX X X X X X X X X X X X N2 N2 X X X X N2 X X X N2 N2 X N2 X X X X X X X N2 N2 X X X X N2 N2 CO2
Slide 29: Path Forward – The Year Ahead
PATH FORWARD – THE YEAR AHEAD TO DATE Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 VOYAGER (High-Grade Flagship Helium Project) BBB#1 discovery – 8.8% He INITIAL PROD. DRILLING Contingent Resources booked BOOK RESERVES FEED Study completed Midstream gas process plant agreement IACX OFFTAKE DISTRIBUTION MARKETING e
Slide 30: Appendices
APPENDICES 30
Slide 31: Strategically Located Assets
STRATEGICALLY LOCATED ASSETS ▪ Strategically targeted geology with high concentration helium and no (trace) hydrocarbons ▪ Proximate key infrastructure and downstream helium consumers Map on Next Slide 31
Slide 32: Strategically Located Assets
STRATEGICALLY LOCATED ASSETS ▪ High helium grade, proximate key infrastructure and downstream N helium purification and consumers ▪ Local infrastructure currently under utilised ▪ Within 100-150 miles trucking to purification facilities Ladder ▪ Conveniently located for customers Creek and developme
Slide 33: Mineral Rights in the United States
MINERAL RIGHTS IN THE UNITED STATES 1. The system of mineral ownership and development in the USA is interests to a lessee, the lessee will have an interest in 100 gross or “WI”). The lessee may keep and sell its proportionate share of the substantially different to the system in Australia. The foll
Slide 34: Glossary and Units
GLOSSARY AND UNITS Term Description 1U (P90), 2U (P50) and 3U In a probabilistic resource distribution, 1U (P90), 2U (P50), 3U (P10) estimates represent the 90% probability, 50% probability and 10% probability respectively that the (P10) quantity recovered will equal or exceed the estimate assuming
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