First Helium Inc. · TSXV:HELI
First Helium — Investor Presentation (January 2024)
32 slides from First Helium's investor presentation, January 2024
Slide 1: Helium Exploration & Production with Oil Optionality
HELIUM EXPLORATION & PRODUCTION WITH TSX-V: HELI OTCQX: FHELF OIL OPTIONALITY FRA: 2MC January 2024 CORPORATE PRESENTATION
Slide 2: Cautionary Notes & Forward Looking Statements
CAUTIONARY NOTES & FORWARD LOOKING STATEMENTS The information contained herein has been prepared to assist interested parties in making their own evaluation of First Helium Inc. (“First Helium” or the “Company”) and does not purport to contain all of the information that a prospective investor or pa
Slide 3: Share Capitalization
SHARE CAPITALIZATION COMMON SHARES OUTSTANDING AS AT DECEMBER 1, 2023 Stock Symbol: TSXV - ”HELI” & OTCQX - “FHELF” Basic 87.1 (MM) Options 5.9 (MM) Warrants (Wtd. Avg. Ex. Price $0.30, Proceeds $3.7 MM) 12.5 (MM) Fully-Diluted (Weighted Average Exercise Price $0.32) 105.5 (MM) Management, Directors
Slide 4: Opportunity Overview - Helium Gas with Oil Optionality
OPPORTUNITY OVERVIEW - Helium Gas with Oil Optionality NEAR TERM ● Grow revenue to $100+ MM per year in 3 - 5 years ● Explore/Develop 15+ high probability targets on existing land base CURRENT ● Drill oil to generate cash flow to help fund helium processing facility costs ● Finance and build helium
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS THE OPPORTUNITY OIL DRILLING SUCCESS | Near term oil drilling locations provide potential for immediate ongoing cash flow. READY HELIUM RESOURCE | Helium Discovery Well is ready to be brought into production. Second well ready to test. SCALEABLE | Existing targets provide for s
Slide 6: Two Premium Helium Projects
TWO PREMIUM HELIUM PROJECTS WORSLEY AREA (Helium & Oil) ● 2 Oil Discoveries, $12.5+ MM Revenue, 100% Drill Success Rate ● 60,000 Acres (~94 Sq. Miles) Core Project, 100%-Owned ● 15 multi-zone, drill locations for helium, oil and natural gas ● Large helium resource, independently evaluated ● Ten-year
Slide 7: Worsley Project Area Scalability - Indicative Economics
WORSLEY PROJECT AREA SCALABILITY - INDICATIVE ECONOMICS Project Scale One Well (Existing “15-25”) Four Well Drill Project2 Ten Well Drill Project2 Helium Price ($/mcf) $600 $700 $600 $700 $600 $700 Total Drilling Costs1 ($MM) n/a n/a $13.0 $13.0 $32.5 $32.5 Total Revenue / Year ($MM) $8.6 $9.9 $43.4
Slide 8: Economics of the "15-25" Helium Well – Template for Growth
ECONOMICS OF THE “15-25” HELIUM WELL – Template for Growth $ Canadian Unless Otherwise Shown Why We Like Helium: 6-7x the cash flow of a typical natural gas well! CURRENT HELIUM MARKET Helium Price $/mcf $600 $700 Large Natural Gas Producer1 (No Helium) Revenue per mcf of Produced Gas2 $10.89 $12.15
Slide 9: Helium Market Opportunity and Economics
HELIUM MARKET OPPORTUNITY AND ECONOMICS GLOBAL DEMAND USA - shortfall in helium supply expected 6 bcf/year ● Final Auction from U.S. Strategic Reserve (Aug 2018) ⁴ elevates uncertainty as supply depletes ● US demand is growing, concerns that US is becoming a net importer of helium and may have to co
Slide 10: Worsley Undeveloped Lands - Helium Rich Area with Oil Upside
WORSLEY UNDEVELOPED LANDS - HELIUM RICH AREA WITH OIL UPSIDE FIRST MOVER ADVANTAGE – CHOICE LAND LOCKED UP EARLY AND COST EFFECTIVELY! FIRST HELIUM LANDS 6 Miles LEDUC POOLS > 20 BCF ~10 KM HELIUM CONTENT > 1.0% HELIUM CONTENT > 0.5% FIRST HELIUM WELLS MARKET GAS LINE 60,000 Core Acres - 100% Owned
Slide 11: Peer Group Comparison Highlights
PEER GROUP COMPARISON HIGHLIGHTS As “HELI” nears helium production, peer comparison suggests potential for 6 - 15x growth in Enterprise Value. PRE-PRODUCTION Royal Avanti Desert Helium Global COMPANIES Helium Energy Mountain Evolution Helium Ticker TSXV - HELI TSXV - RHC TSXV - AVN TSXV - DME TSXV -
Slide 12: Next Steps | 12 Months
NEXT STEPS | 12 Months Worsley Property Activities Exploration Upside Activities Drill development well, and Re- Position for Further Exploration Drilling at enter/complete a 2nd well to add potential Worsley – Evaluate Potential for Area Play oil production and cash flow. Complete and Drill First H
Slide 13: Thank You
THANK YOU Contact us for more information on this investment opportunity! FIRST HELIUM INC. Corporate Office Suite 550, 800 West Pender Street Vancouver B.C. V6C 2V6 Canada Head Office Suite 1225, 635 Eighth Avenue SW Calgary, AB T2P 3M3 Canada Email: ir@firsthelium.com Toll-Free: (833) HELIUM-1 (83
Slide 14: Appendix
APPENDIX Table of Contents: Management & Directors 15 - 16 Helium “101” 17 - 21 Worsley Project – Additional Information 22 - 30
Slide 15: Corporate Bench Depth
CORPORATE BENCH DEPTH First Helium boasts a seasoned management team, board and advisory group with successful track records and experience in oil and gas exploration and production, capital markets and finance, helium project development, construction and project management, and mining exploration
Slide 16: Independent Directors
INDEPENDENT DIRECTORS Todd Holmstrom Cal Watson B. Sc. P. Eng. 33+ years in leadership roles in Oil & Gas, 35 years Oil and Gas experience Mining, Wireless Communications, and Medical Devices ● Multiple roles across Operations, Production, and Reservoir Engineering, Gas ● Held the position of Presid
Slide 17: Helium: Unique, Rare and Valuable
HELIUM: UNIQUE, RARE AND VALUABLE Helium is essential in modern high-tech, medical, scientific and industrial applications because of its exceptional physical properties. There are a lack of substitutes for helium in many applications. QUICK DIFFUSION SMALL MOLECULAR SIZE NON-TOXIC ULTRA-HIGH Helium
Slide 18: Market Fundamentals
MARKET FUNDAMENTALS HELIUM DEMAND Big technology companies like Amazon, Google, Facebook, and Netflix all depend on this one gas to keep their servers up and running around the clock. Helium has everyday applications in the tech and medical industries as well as space travel and national security. ●
Slide 19: Market Fundamentals of Helium
MARKET FUNDAMENTALS OF HELIUM GLOBAL PRODUCTION OF HELIUM | 2022 Global helium production summary by Country1: CRITICAL MINERAL | Helium has been identified as a critical mineral by Canada and Europe. It is receiving renewed attention Million m3 Billion ft3 by the US Government as US supply depletes
Slide 20: Economics of Helium vs Natural Gas
ECONOMICS OF HELIUM VS NATURAL GAS SUPPLY & DEMAND | Certain considerations will continue to drive the global supply demand balance for helium. ● Demand expected to grow from 6 Bcf per year by ~8% through 2026 ● Additional supply from Russia subject to technical issues and geopolitical uncertainty ●
Slide 21: Market Fundamentals of Helium - Helium Grading System
MARKET FUNDAMENTALS OF HELIUM - Helium Grading System1 Grade 6 (99.9999% Purity) The closest to 100% pure helium, 6.0 helium is used in the manufacturing of semiconductor chips. It’s also “6 Nines” used in laboratories for scientific research, laser cutting, MRI machines, and as a carrier gas in gas
Slide 22: Worsley Area Exploration
WORSLEY AREA EXPLORATION ● Historically active region for hydrocarbon exploration and development ● Multi-commodity presence enhances value proposition and mitigates helium exploration risk ● In late 1990’s, discovery of high-nitrogen, helium-rich natural gas, which did not meet sales pipeline speci
Slide 23: Worsley Helium Project
WORSLEY HELIUM PROJECT HELIUM DISCOVERY WELL “15-25” UNDERPINS PROJECT DEVELOPMENT ● Ready to produce helium gas, pending installation of scalable, modular, processing facility. ● Helium sales offtake agreement in place, first 5 years fixed pricing, take-or-pay, 20% of production available for direc
Slide 24: Worsley Area Potential
WORSLEY AREA POTENTIAL ● Worsley Leduc Reef Trend has over 270 Leduc Formation well HELIUM CONTENT > 1.0% HELIUM CONTENT > 0.5% penetrations ● Helium Content Increases from West to East, along with Nitrogen content INCREASING HELIUM AND NITROGEN CONTENT ➢ Few deep well penetrations to East create He
Slide 25: Worsley Discovery Wells
WORSLEY DISCOVERY WELLS HELIUM DISCOVERY WELL 15-25 6 Miles ● 1.3% HELIUM ~10 KM ● 10 DAY FLOW TEST @2MMCF/D ● 65% NATURAL GAS & 12 BBLS/MMCF OF CONDENSATE ● CONFIRMS 3D SEISMIC MODEL HELIUM TARGET WELL 14-23 (5-27) ● HORIZONTAL WELL ● CASED, AWAITING COMPLETION ● SUCCESSFUL TEST SETS UP POTENTIAL R
Slide 26: "14-23" Horizontal Well Helium Target
“14-23” HORIZONTAL WELL HELIUM TARGET ● “14-23” Well successfully drilled and cased August 2022 ● Strategically targets reservoir with known historical gas 0.83% He First Helium 14-23 0.88% He production and helium Produced 0.6 Bcf Horizontal Well Produced 0.1 Bcf concentrations of 0.83% and Natural
Slide 27: Worsley Planned Locations
WORSLEY PLANNED LOCATIONS PLANNED LOCATION 6 Miles ~10 KM ● Well understood geology HELIUM CONTENT > 1.0% reduces exploration risk HELIUM CONTENT > 0.5% NEWLY ACQUIRED LAND ● 15 multi-zone, multi- commodity locations identified on Worsley Land Base, including 2 re-entries ● First Helium holds ~20,00
Slide 28: Strategic Helium Offtake Sales Agreement
STRATEGIC HELIUM OFFTAKE SALES AGREEMENT LONG TERM SUPPLY AGREEMENT | Major Global Industrial Gas Supply Company as Purchaser ● Ten year “take-or-pay” agreement with firm pricing over the first 5 years ● Purchase up to 80% of helium production from 15-25 well at Worsley, with ability to potentially
Slide 29: Worsley Area Reef Trend
WORSLEY AREA REEF TREND ● Deep-seated Faulting within the LOWER BANFF Basement ● Reef Build-up Associated with Faulting and Pre-existing High WABAMUN ● Hydrothermal Fluids Creating He Dolomite around Fault Conduits He NISKU IRETON ● Helium Generated in the Basement and Migrated through Existing Faul
Slide 30: Risk Factors
RISK FACTORS Readers should carefully consider the risks and uncertainties described below and in First Helium’s Final Prospectus dated June 28, 2021, filed on First Helium’s SEDAR profile at www.sedar.com before deciding whether to invest in First Helium’s securities. These risk factors do not nece
Slide 31: Risk Factors
RISK FACTORS There is no assurance that further commercial quantities of helium, natural gas or oil will be discovered or acquired by First Helium. Helium, natural gas and oil exploration, development and production operations are subject to all the risks and hazards typically associated with such o
Slide 32: Risk Factors
RISK FACTORS Reliance on key personnel The success of First Helium will depend in large measure on certain key personnel and management. The loss of the services of such key personnel could have a material adverse effect on First Helium. The competition for qualified personnel in the helium, natural