First Helium Inc. · TSXV:HELI
First Helium — Investor Presentation (November 2022)
32 slides from First Helium's investor presentation, November 2022
Slide 1: Project-Driven Helium Discovery, Development & Production
PROJECT-DRIVEN HELIUM DISCOVERY, DEVELOPMENT TSX-V: HELI OTCQX: FHELF & PRODUCTION 2MC: FRA INVESTOR DECK | NOVEMBER 2022
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 par
Slide 3: Two Premium Helium Projects
TWO PREMIUM HELIUM PROJECTS WORSLEY AREA ● 60,000 Acres on Core Worsley Project, 100% Owned ● “15-25” Discovery Well Tested 1.3% Helium, 3rd Party Evaluation ● “14-23” Helium Target Sets Up Potential Regional Play ● Two Oil Discovery Wells “1-30” & “4-29” Onstream, Provide Cash Flow and Increase Ass
Slide 4: Share Capitalization
SHARE CAPITALIZATION COMMON SHARES OUTSTANDING AS AT NOVEMBER 18, 2022 Basic 74.9 (MM) Options 6.0 (MM) Warrants 17.3 (MM) Fully-Diluted (Weighted Average Exercise Price $0.46) 98.2 (MM) Management, Directors, Advisors and Key Shareholders collectively own or control ~28% of the Company’s outstandin
Slide 5: Attractive Valuation
ATTRACTIVE VALUATION Helium Well “15-25” Independent Evaluation1 , Unrisked Best Estimate Contingent $35 MM Resource Potential NPV10 @ Helium $600/mcf Oil Property Independent Reserves Evaluation2 NPV10 July ‘22 $25 MM “14-23” Helium Target to be Completed and Tested ?? Exploration Upside @ Worsley
Slide 6: 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 7: 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 INCREASING HELIUM AND NITROGEN CONTENT content ● Geology Remains Uninterrupted - Reef Trend C
Slide 8: Worsley Undeveloped Lands - Helium Rich Area
WORSLEY UNDEVELOPED LANDS - HELIUM RICH AREA FIRST HELIUM LANDS LEDUC POOLS > 20 BCF HELIUM CONTENT > 1.0% HELIUM CONTENT > 0.5% FIRST HELIUM WELLS MARKET GAS LINE First Helium holds crown mineral Multiple formations in the area Management estimates 1 bcf of rights to 60,000 Core Acres in the contai
Slide 9: Worsley Discovery Wells
WORSLEY DISCOVERY WELLS HELIUM DISCOVERY WELL 15-25 ● 1.3% HELIUM ● 10 DAY FLOW TEST @2MMCF/D ● 65% NATURAL GAS & 12 BBLS/MMCF OF CONDENSATE LIGHT OIL DISCOVERY WELL 1-30 ● DRILLED ON 3D SEISMIC ● ON-STREAM JANUARY 23, 2022 ● WELL PAY-OUT < 2 MONTHS LIGHT OIL DISCOVERY WELL 4-29 ● DRILLED ON 3D SEIS
Slide 10: 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 helium 0.83% 0.88% concentrations of 0.83% and First Helium 14-23 He He 0.88% Horizontal Well ● Timing of Completion and Testing to be coordinated with helium
Slide 11: Worsley Planned Locations
WORSLEY PLANNED LOCATIONS PLANNED LOCATION ● Well understood geology reduces HELIUM CONTENT > 1.0% exploration risk HELIUM CONTENT > 0.5% NEWLY ACQUIRED LAND ● 4 additional drill locations identified on existing 3D seismic along with one re-entry candidate for the 2023 drill program ● Numerous locati
Slide 12: Economics of 15-25 Helium Well
ECONOMICS OF 15-25 HELIUM WELL $ Canadian Unless Otherwise Shown CURRENT HELIUM MARKET Helium Price $/mcf $400 $500 $600 $700 Revenue per Raw Gas mcf Produced $8.36 $9.62 $10.89 $12.15 Netback per Raw Gas mcf Produced $4.97 $6.15 $7.33 $8.15 Forecast Revenue per Year (MM’s) $6.1 $7.0 $7.9 $8.9 Forec
Slide 13: First Helium Contingent Resources Report - 15-25 Discovery Well
FIRST HELIUM CONTINGENT RESOURCES REPORT | “15 - 25” Discovery Well Prepared by Sproule Associates Ltd. March 31, 2021¹ Sensitivity to Helium Pricing VOLUMES NPV 10% Helium Natural Gas Natural Gas Liquids $300/mcf $340/mcf $400/mcf $500/mcf $600/mcf mmcf mmcf mbbl $MM $MM $MM $MM $MM 323 12,632 372
Slide 14: Worsley Project Area Proposed Development Plan
WORSLEY PROJECT AREA PROPOSED DEVELOPMENT PLAN Helium Price $300 $400 $500 $600 Discovery Well 15-25 ($/mcf) plus 3 additional Drill & Complete 3 Additional Wells ($MM) INCREMENTAL CAPITAL $8.4 wells drilled in Worsley Project Area, Expand Facility for 3 Additional Wells ($MM) INCREMENTAL CAPITAL $1
Slide 15: 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. ● Sproule ¹ Unrisked Contingent Resource “Best” Estimate of NPV10 $15.2MM, and at current helium prices is over NPV10 $30M
Slide 16: Lethbridge Exploration Area
LETHBRIDGE EXPLORATION AREA RECOGNIZING THE HEAD-START VALUE OF EXISTING SEISMIC DATA Evaluated over 880,000 contiguous acres of highly prospective land in Southern Alberta, including 230,00 acres of 3D seismic (the “Block”). Southern Area is near known helium production - helium content is greater
Slide 17: SE Alberta/SW Saskatchewan Helium Fairway
● First Helium targets are similar to SE ALBERTA/SW SASKATCHEWAN known helium accumulations at HELIUM FAIRWAY Knappen, Battle Creek and Cypress COOKING LAKE ● Multiple potential targets with He He BEAVERHILL LAKE/ four-way closure He SOURIS RIVER ● Multiple zones of good porosity and permeability PI
Slide 18: Lethbridge Greater Knappen Area
LETHBRIDGE GREATER KNAPPEN AREA EXPLORATION AREA HELIUM CONTENT > 1.0% HELIUM CONTENT > 0.5% Southern Exploration Area ● Seismic evaluation ongoing, first drill ready location ready for 2023 drilling ● Recent helium exploration success to SE ● Proximity to existing helium exploration, drilling and pr
Slide 19: Next Steps | 12 Months
NEXT STEPS | 12 Months Worsley Property Activities Exploration Upside Activities Secure Helium Off-Take Sales Agreement Technical Evaluation of Newly Acquired Worsley Lands, Confirm Additional Drill Targets Confirm Facility Financing Strategy and Order Equipment Continue Seismic Data Interpretation on
Slide 20: 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 a
Slide 21: 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 22: Investment Highlights
INVESTMENT HIGHLIGHTS GLOBAL DEMAND | Helium is a high value, finite resource, RESOURCE DE-RISKED | The Company’s helium-rich 15-25 vital to the High-Tech, Healthcare, Aerospace and discovery well is ready to be equipped and brought into Industrial sectors because of its physical properties. producti
Slide 23: Peer Group Comparison Highlights
PEER GROUP COMPARISON HIGHLIGHTS “HELI” stands out from its peers with helium contingent resources and cash flow from producing oil discovery wells. PRE-PRODUCTION Helium Global Blue Star Royal Avanti Desert COMPANIES Evolution Helium Helium Helium Energy Mountain Ticker TSXV - HELI TSXV - HEVI CSE -
Slide 24: 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 (833
Slide 25: Appendix
APPENDIX PIT Wes FIRST HELIUM pei 774
Slide 26: 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 27: Worsley Pipeline Infrastructure Acquired
WORSLEY PIPELINE INFRASTRUCTURE ACQUIRED Natural Gas Gathering System ● 46 km of natural gas gathering lines Acquired Gathering Lines ● Facilitates development across entire Worsley Trend Natural Gas Sales Line (TC Energy) ● Estimate replacement cost of $7 - 9 mm 3rd Party Gathering & Processing ● I
Slide 28: Market Opportunity and Economics
MARKET OPPORTUNITY GLOBAL DEMAND AND ECONOMICS USA - shortfall in supply expected ● Final Auction from U.S. Strategic Reserve (Aug 2018) ⁴ elevates supply uncertainty 6 bcf/year ● Qatar, Algeria and Russia are major suppliers ⁴ – political 7.6% risk Canada - huge opportunity GLOBAL th ● 5 Largest Gl
Slide 29: Demand Constituents of Helium
DEMAND CONSTITUENTS OF HELIUM 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. ● Crit
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 necess
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