Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Shareholder Meeting (May 2022)
41 slides from Blue Star Helium's shareholder meeting presentation, May 31, 2022
Slide 1: The Leading Helium Pure Play
For personal use only THE LEADING HELIUM PURE PLAY Delivering high-grade, low-cost helium projects in the United States May 2022 ASX | BNL OTCQB | BSNLF
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION Prospective Resources The material in this presentation has been prepared by Blue Star Helium Limited (ACN 009 230 835)(“Company”). Net Recoverable Helium (mmcf) 1U (P90) 2U (P50) 3U (P10) Galactica Prospect 2,131 4,395 6,849 This presentation may not be reproduc
Slide 3: Blue Star: Leading Helium Pure Play
BLUE STAR: LEADING For personal use only HELIUM PURE PLAY ▪ Strategic large-scale US land position ▪ Early-mover in the world’s largest helium market ▪ High grade green helium resource in Las Animas, Colorado, U.S. ▪ Low cost, high impact exploration and development drilling program ▪ Recent discove
Slide 4: A Year in Review
A YEAR IN REVIEW 4 3 For personal use only Helium Prospects in Discoveries Development ▪ Outstanding exploration success rate ▪ Helium discoveries at Voyager & Galactica/Pegasus HELIUM DISCOVERED He ▪ BBB#1 – 8.8% helium (Voyager) ▪ JXSN#1, 2 and 3 – 1.98% and 3.14% helium (Galactica/Pegasus) ▪ Gas
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT SHARE PRICE PERFORMANCE $0.08 CLEAN CAPITAL STRUCTURE For personal use only $0.06 ASX Ticker BNL $0.04 OTCQB ticker BSNLF $0.02 Share price (30 May 22) 3.1 ¢ $0.00 Issued share capital 1,586 M Basic market capitalisation A$49.1 M Cash (29 April 22) A$13.6 M EXPERIENCED BOARD AND M
Slide 6: Helium: A Critical Technology Enabler
For personal use only HELIUM: A CRITICAL TECHNOLOGY ENABLER High value commodity with high-tech applications Continued supply shortage and strong demand growth to persist beyond current crisis into medium term Helium pricing at historic highs
Slide 7: The U.S. Helium Market
THE U.S. HELIUM MARKET DOMESTIC SUPPLY CHALLENGES Current Status: U.S. strategic reserve (BLM) progressively sold-off – minimal residual For personal use only ▪ ▪ Most worldwide He supply is a by-product of hydrocarbon extraction; price inelastic Helium Shortage – ▪ plus climate targets expected to
Slide 8: Strong Recent Price Momentum
STRONG RECENT PRICE MOMENTUM Supply shocks and scarcity cause sharp increases in pricing For personal use only $5,000 BLM Price (Avg) ▪ Scarcity of supply has caused $4,500 Private Gaseous Helium (Avg) Spot Price (RHS) sharp increases in pricing $4,000 China* ▪ Reports of helium sales of up Taiwan*
Slide 9: Strategic, First-Mover in Las Animas
For personal use only STRATEGIC, FIRST- MOVER IN LAS ANIMAS US assets in world’s biggest helium market High-grade, green helium resource Strategic large scale land position surrounds historic high-grade helium analogues (Mode Dome field and Cynthia True discovery) Excellent proximity to key infrastr
Slide 10: Blue Star's Flagship Helium Projects
BLUE STAR’S FLAGSHIP HELIUM PROJECTS Extensive landholding in premier U.S. helium location For personal use only FIRST MOVER IN LAS ANIMAS COUNTY, COLORADO ▪ Dominant, strategic large-scale land position secured ▪ Circa 298,141 gross acres leased (215,345 net acres) ▪ Proven Lyons helium play fairwa
Slide 11: Substantial Shallow Resources & Deeper Plays
SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS Across large land position and significant prospect portfolio For personal use only LYONS HELIUM PLAY Net Recoverable Helium (mmcf) 1U (P90) 2U (P50) 3U (P10) Galactica Prospect 2,131 4,395 6,849 ▪ 13.4 BCF prospective helium resources currently from 5 pr
Slide 12: Substantial Shallow Resources & Deeper Plays
SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS For personal use only 12
Slide 13: Accelerating the Portfolio
ACCELERATING For personal use only THE PORTFOLIO Exploration program underway – outstanding success to date Follow up well permit locations offset discoveries Permitting of large helium exploration, appraisal and development well inventory in process Geologic and economic uncertainty significantly r
Slide 14: Exploration Program Underway
EXPLORATION PROGRAM UNDERWAY Early success & advancing exploration development program For personal use only Exploration Results ▪ Outstanding exploration success – 4 helium discoveries over 3 prospects (Voyager, Pegasus & Galactica) – Gas on logs in two wells on Enterprise (Enterprise 16#1 testing
Slide 15: Voyager
VOYAGER Fast tracking appraisal and development Discovery For personal use only ▪ BBB#1 well: calculated air-free gas concentration of 8.8% helium in the Lyons formation with a 134 ft gas column discovered in the Lyons formation at Voyager prospect – Similar gas composition to the historic Model Dom
Slide 16: Voyager Prospects
VOYAGER PROSPECTS Fast tracking appraisal and development For personal use only Voyager Prospect Model Dome Line of section Potential 134 ft Gas column undrilled 8.8% He Ave. 8% He 16 structure
Slide 17: Galactica & Pegasus
GALACTICA & PEGASUS Helium discovered at Galactica/Pegasus prospects Exploration Success For personal use only ▪ Helium discoveries in JXSN#1, JXSN#2 and JXSN#3 in May 2022 Key parameter JXSN#1 JXSN#2 JXSN#3 Helium concentration (%) 1.98 3.14 2.1 Gas column in Lyons formation (ft) 217.5 101+ 230 Net
Slide 18: Galactica Prospect
GALACTICA PROSPECT Helium discovered and confirmed in offset well Galactica Prospect Line of section For personal use only “Gas down to” 230 ft Gas column potential 18 deeper contact ~2.1% He
Slide 19: Pegasus Prospect
PEGASUS PROSPECT Helium discovered and confirmed in offset well Galactica Prospect Pegasus Prospect For personal use only Line of section 230 ft Gas column ~2.1% He 217.5 ft Gas column ~1.98% He 222 ft 101+ ft Gas column Gas ~3.14% He 19
Slide 20: Serenity
SERENITY Structural high up dip from gas in Lyons reservoir sweet-spot For personal use only Drilling next ▪ First well (Sammons 315310C) in Blue Star-Vecta AMI (Blue Star 50% WI) over the Serenity prospect targeted to commence drilling in June ▪ 3 appraisal/development well locations already approv
Slide 21: Serenity Prospect
SERENITY PROSPECT Structural high up-dip from interpreted gas in Lyons target Serenity Prospect For personal use only Line of section Gas interpreted in Lyons target * Secondary targets in Pennsylvanian 21
Slide 22: Enterprise
ENTERPRISE Successful test of the proven Lyons helium play in the west Results so far For personal use only ▪ 78ft structural gas column interpreted at Enterprise – Based on the GWC interpreted at Enterprise 16#1 and the top of the currently highest penetration of the Lyons formation on the structur
Slide 23: Moving Rapidly to First Helium
MOVING RAPIDLY TO FIRST HELIUM Accelerated evaluation and commercialisation timetable For personal use only Q2 2022 Q4 2022 ▪ Drill initial AMI well (Sammons) ▪ Permit approval for 4 wells ▪ Additional permits initiated ▪ Drill 4wells ▪ Initiate plan of development and FEED ▪ Further development and
Slide 24: Blue Star: The Leading Helium Pure Play
ASX | BNL BLUE STAR: THE LEADING OTCQB | BSNLF HELIUM PURE PLAY For personal use only ▪ Strategic large-scale US land position ▪ Early-mover in the world’s largest helium market ▪ High grade green helium resource in Las Animas, Colorado, U.S. ▪ Low cost, high impact exploration and development drill
Slide 25: Appendices
For personal use only APPENDICES 25
Slide 26: Exploration Program Underway: Well Permitting Status
EXPLORATION PROGRAM UNDERWAY Well permitting status For personal use only Exploration Well Permitting Phases Well Permitting Schedule Permit Location COGCC COGCC Prospect Survey Preparati Form 2 Issued Total Selection Review Hearing on Enterpris e 1 2 1 1 5 Galactica 6 7 2 2 17 Galileo 3 3 Pegas us
Slide 27: High-Return Commercialisation Pathway
HIGH-RETURN COMMERCIALISATION PATHWAY Scalable, modular growth concept to market For personal use only x 5 Wells x 1 Modular Facility (2.5mmcf/d) Plant gate sales to off-takers OUTPUT 50mmcf/yr 2.5mmcf/d He product gas (+98% He) To liquification raw gas* Helium He plant or end user (various nearby)
Slide 28: Strategically Located Assets
STRATEGICALLY LOCATED ASSETS For personal use only ▪ High helium concentration ▪ Highly strategic location proximate key infrastructure and downstream helium consumers ▪ Strategic large-scale US land position Las Animas County Project Area 28
Slide 29: Substantial Shallow Resources & Deeper Plays
SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS For personal use only 29 29
Slide 30: Unique, Rare and Highly Valued
A unique set of physical and chemical properties ▪ Non-toxic, non-flammable, low-density gas For personal use only ▪ Chemically and radiologically inert ▪ Ultra-cold boiling point (-269oC), stays liquid at absolute zero UNIQUE, ▪ High thermal conductivity RARE AND Finite, irreplaceable and rare on E
Slide 31: Helium Demand
Global share of helium applications HELIUM Cryogenics (incl. MRI) Lifting Electronics DEMAND Other Breathing Pressure and purging For personal use only Analytical Leak detection Welding Optical fiber An enabler of innovation, helium is essential for key existing and future 9% 6% 11% technology devel
Slide 32: Current Helium Uses
2 He CURRENT HELIUM USES 4.002602 Helium For personal use only 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 during NASA (and p
Slide 33: Building the Future
BUILDING THE FUTURE Helium is a modern technology enabler For personal use only ▪ Helium is not a greenhouse gas and not an energy source ▪ It plays a key part in renewable energy and the technology required for a low-carbon economy: – Essential in nuclear fusion and ideal for nuclear fission coolin
Slide 34: Major Global Helium Supply Sources
MAJOR GLOBAL HELIUM SUPPLY SOURCES Most helium production is a by-product output of hydrocarbon extraction For personal use only He output He concentration Asset Owner Domicile Notes (Bcf p.a.) (% He in raw gas) Ras Laffan RasGas Qatar 2.0 0.2% Primarily LNG output La Barge Exxon U.S. 1.5 0.7% Prima
Slide 35: High-Grade Helium
0% 1% 2% 3% 4% 5% 7% 8% 9% 6% For personal use only Model Dome (US) 8% Tocito Dome (US) 7% Tacitus Holbrook Basin (US) 6% Desert Mountain Dineh Bi Keyah (US) 5% Nasco AG Concho Dome (US) 4% Petrosun HIGH-GRADE HELIUM Ladder Creek (US) 3% Tumbleweed Midstream Globally attractive helium concentration
Slide 36: The Leading Helium Pure Play
THE LEADING HELIUM PURE PLAY Premier quality development asset opportunity For personal use only Desert Blue Star Helium One Imperial Grand Gulf Company Mountain Renergen Avanti Energy Royal Helium Noble Helium Helium Global Helium* Energy Energy ASX: BNL JSE: REN; ASX: ASX: GGE Listing TSXV: DME AI
Slide 37: Marketing Blue Star Helium
MARKETING BLUE STAR HELIUM Right in the centre of the world’s biggest helium market For personal use only TARGETING PREMIUM SUPPLIER STATUS ▪ Helium marketing study – completed ▪ Within trucking distance to established liquefaction plants with significant available capacity ▪ Targeting production of
Slide 38: Blue Star: A Local Partner and Supplier of Choice
BLUE STAR: A LOCAL PARTNER AND SUPPLIER OF CHOICE A highly engaged, holistic stakeholder approach, For personal use only STRONG ESG CREDENTIALS ▪ Preparing Environment, Social and Governance (ESG) roadmap to guide the business as it grows – aim to become a leading supplier of helium utilising a best
Slide 39: 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 For personal use only (P10) quantity recovered will equal or exceed
Slide 40: Data Sources
DATA SOURCES Slide Description Source For personal use only Currency conversion rates: CADUSD 0.79; AUDUSD 0.72; GBPUSD 1.26 (30 May 2022) Desert Mountain Energy – Investor Presentation, 12 January 2022 Grand Gulf Energy – March 22 Quarterly Activities and Cash Flow Report, 29 April 2022 Blue Star E
Slide 41: 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