Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Investor Presentation (August 2022)
40 slides from Blue Star Helium's investor presentation, Aug 10, 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 Corporate Presentation August 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: Corporate Snapshot
CORPORATE SNAPSHOT SHARE PRICE PERFORMANCE (ASX: BNL) $0.08 $0.07 CLEAN CAPITAL STRUCTURE For personal use only $0.06 $0.05 ASX ticker BNL $0.04 $0.03 OTCQB ticker BSNLF $0.02 Share price (ASX close, 5 Aug 22) 3.3¢ $0.01 $0.00 Issued share capital 1,586 M Feb-21 Mar-21 Feb-22 Mar-22 Jan-21 May-21 Ju
Slide 4: Blue Star: Leading Helium Pure Play
BLUE STAR: LEADING 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 drilling program ▪ Recent discove
Slide 5: Snapshot
SNAPSHOT 4 3 2 1 For personal use only Prospects in Wells with Maiden Prospect Helium Development gas on logs Well Drilling discoveries ▪ Outstanding exploration success rate – 4 discovery wells over 3 prospects ▪ Helium discoveries at Voyager & Galactica/Pegasus, gas on logs at Enterprise up-dip ap
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 supply 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 (Model Dome field and Cynthia True discovery) Excellent proximity to key infrast
Slide 10: Strategically Located Assets
STRATEGICALLY LOCATED ASSETS For personal use only ▪ Strategically targeted geology with high concentration helium ▪ Proximate key infrastructure and downstream helium consumers Map on Next Slide 10
Slide 11: Strategically Located Assets
STRATEGICALLY LOCATED ASSETS ▪ High helium grade, proximate key infrastructure and downstream For personal use only N helium purification and consumers ▪ Local infrastructure currently under utilised ▪ Within 100-150 miles trucking to purification facilities Ladder ▪ Conveniently located for custome
Slide 12: 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 298,381 gross acres leased (215,631 net acres) ▪ Proven Lyons helium play fairwa
Slide 13: 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 14: Voyager
VOYAGER Discovery, appraisal and development permitting Discovery For personal use only ▪ BBB#1 well discovery in December 2021: calculated air-free gas concentration of 8.8% helium in a 134 ft gas column discovered in the Lyons formation at Voyager prospect – Similar gas composition to the historic
Slide 15: Voyager Prospect
VOYAGER PROSPECT 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 15 structure
Slide 16: 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 17: Galactica Prospect
GALACTICA PROSPECT Helium discovered and confirmed in offset well – offset development wells set for approval Galactica Prospect Line of section For personal use only “Gas down to” 230 ft Gas column potential 17 deeper contact ~2.1% He
Slide 18: Pegasus Prospect
PEGASUS PROSPECT Helium discovered and confirmed in offset well – offset development wells set for approval 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 18
Slide 19: Serenity
SERENITY Structural high up dip from gas in Lyons reservoir sweet-spot For personal use only Drilling Aug 2022 ▪ First well (Sammons 315310C) in Blue Star-Vecta AMI (Blue Star 50% WI) over the Serenity prospect commenced drilling in August ▪ 3 appraisal/development well locations already approved to
Slide 20: Serenity Prospect
SERENITY PROSPECT Structural high up-dip from interpreted gas in Lyons target – Maiden well Aug 2022 Serenity Prospect For personal use only Line of section Gas interpreted in Lyons target * Secondary targets in Pennsylvanian 20
Slide 21: Enterprise
ENTERPRISE Discovered gas on logs in two wells Results so far For personal use only ▪ Hill#2: 29 ft gas column in the high- quality Lyons formation interpreted on wireline logs ▪ Enterprise 16-1 (drilled Feb 2022), 13 ft gas column in the high-quality Lyons formation interpreted on wireline logs ▪ F
Slide 22: Activity Summary
ACTIVITY SUMMARY Western and Eastern Development Areas For personal use only 22
Slide 23: 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 24: Moving to First Helium
MOVING TO FIRST HELIUM Evaluation and commercialisation timetable For personal use only Q3 2022 ▪ Drill initial AMI well (Sammons) ▪ Permit approval for 4 wells ▪ Drill 4 wells H1 2023 ▪ Voyager resource update ▪ Drill 5 wells ▪ Further development and exploration well drilling ▪ Galactica/Pegasus r
Slide 25: Blue Star: The Leading Helium Pure Play
ASX | BNL BLUE STAR: THE LEADING OTCQB | BSNLF HELIUM PURE PLAY For personal use only ▪ Outstanding exploration success to date ▪ Geologic and economic uncertainty significantly reduced by recent exploration results ▪ Recent discovery successes at Galactica/Pegasus and Voyager plus gas on logs at En
Slide 26: Appendices
For personal use only APPENDICES 26
Slide 27: The Leading Helium Pure Play: Peer Comparison
THE LEADING HELIUM PURE PLAY Premier quality development asset opportunity For personal use only Desert Mountain Helium One Grand Gulf Company Blue Star Helium Renergen Avanti Energy Royal Helium Noble Helium Energy Global Energy ASX: BNL JSE: REN; ASX: ASX: GGE Listing TSXV: DME AIM: HE1 TSXV: AVN
Slide 28: 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 29: 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 ▪ Lighter than air RARE AND ▪ Small (leak de
Slide 30: 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 31: 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 32: Major Global Helium Supply Sources
MAJOR GLOBAL HELIUM SUPPLY SOURCES Most helium production is a by-product output of hydrocarbon extraction He output He concentration For personal use only 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 33: High-Grade Helium
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 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 34: 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 ▪ Direct gas sales opport
Slide 35: 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 36: Substantial Shallow Resources & Deeper Plays: Argo Deep
SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS For personal use only Argo Deep 36 36
Slide 37: Substantial Shallow Resources & Deeper Plays: Enterprise Deep
SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS For personal use only Enterprise Deep 37
Slide 38: 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 39: Data Sources
DATA SOURCES Slide Description Source For personal use only Currency conversion rates: CADUSD 0.78; AUDUSD 0.70; GBPUSD 1.22 (1 Aug 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 En
Slide 40: 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
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