Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Investor Presentation (July 2023)
35 slides from Blue Star Helium's investor presentation, July 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 discoveries at Voyager, Galactica & Pegasus Voyager development, first helium from Q4 2023 High grade helium exploration portfolio large reso
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 SHARE PRICE PERFORMANCE $0.08 $0.07 CLEAN CAPITAL STRUCTURE $0.06 $0.05 ASX Ticker BNL $0.04 OTCQB ticker BSNLF $0.03 $0.02 Share price (ASX close, 03 July 23) 2.7 ¢ $0.01 Issued share capital 1,586 MM $0.00 Feb-22 Feb-23 Mar-22 Mar-23 May-22 May-23 Sep-21 Jan-22 Jun-22 Jan-23 Jun
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 pathway; Galactica/Pegasus targeted for first production in 2024 LOW CAPITAL AND HIGH RETURN
Slide 5: 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 6: At Stand-Out Helium Grades
0% 1% 2% 4% 5% 7% 8% 3% 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% Globally high helium concentration le
Slide 7: Helium Uses, Demand, Supply & Market
HELIUM USES, DEMAND, SUPPLY & MARKET Medicine, consumer electronics, high-tech industrial uses Strong demand growth diversified deep market Market is structurally under supplied with ongoing challenges Helium price is surging and transitioning to market pricing 7
Slide 8: 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 9: Helium Demand 2-6% p.a.
Global share of helium applications (2021) 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
Slide 10: 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 U.S. strategic reserve (BLM) Supply now critically strained from recent further interruptions globally Current Status: ▪ Most worldwide He supply is a by-product
Slide 11: Has Seen Strong Price Momentum
…HAS SEEN STRONG PRICE MOMENTUM Ongoing supply challenges, increasing demand, transition to market pricing $5,000 BLM Price (Avg) ▪ Scarcity of supply, strong Private Gaseous Helium (Avg) demand and transition to $4,000 Spot Price (RHS) market pricing resulting in strong price momentum China* Taiwan
Slide 12: Voyager Maiden Development
VOYAGER MAIDEN DEVELOPMENT LOW-COST, WELL-DEFINED COMMERCIALISATION PATHWAY 12
Slide 13: Voyager: A Premium Initial Helium Development
VOYAGER: A PREMIUM INITIAL HELIUM DEVELOPMENT First helium production Q4 2023 First helium Targeting output and Processing premium spot / sales targeted capacity readily short term for Q4 CY2023 Low upfront scalable by market prices project addition of Midstream Gas processing development membranes
Slide 14: The Voyager Helium Development
THE VOYAGER HELIUM DEVELOPMENT High-grade helium discovery appraisal and 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 formation – Globally high in-situ helium concentration; simi
Slide 15: Voyager Development Metrics
VOYAGER DEVELOPMENT METRICS Midstream development pathway adopted Plant metrics Unit Value ▪ First development well to Nameplate raw gas input MMcf/d 2.0 commence drilling Q3 CY2023; Helium recovery % 90 pressure/flow testing to follow Helium product purity % He 98 ▪ Processing facility: Plant run t
Slide 16: The Voyager Helium Development
THE VOYAGER HELIUM DEVELOPMENT Plan of development schematic 16
Slide 17: Refined Production Process
REFINED PRODUCTION PROCESS World-class extraction methodology and Helium value chain Helium $450-$750/mcf Helium $1,000-$3,000/mcf
Slide 18: Marketing Strategy
MARKETING STRATGEY Premium spot and short term market target to deliver optimal, price-of-the-day buyers Leasing option avoids substantial debt Current spot and tube trailer pricing Strategy delivers flexible access to funding and undesirable execution of quotes substantially higher than typical pre
Slide 19: Voyager: Moving Rapidly to First Helium
VOYAGER: MOVING RAPIDLY TO FIRST HELIUM Evaluation and commercialisation timeline Q2 2023 Q3 2023 Q4 2023 H1 2024 2 development well approved Drilling of first Drilling of 1-2 Optimise development further production Submission of wells, plus development First helium additional 4 southern wells explo
Slide 20: Voyager – Model Dome Cross Section
VOYAGER – MODEL DOME CROSS SECTION VOYAGER Model Dome 8.8% He 8% He 134 ft Gas column Potential 8.8% He undrilled Ave. 8% He 20 structure
Slide 21: Galactica / Pegasus Project: The Next Stage
GALACTICA / PEGASUS PROJECT: THE NEXT STAGE LARGE-SCALE, MULTI- PRODUCT DEVELOPMENT 21
Slide 22: The Galactica/Pegasus Development Area
THE GALACTICA/PEGASUS DEVELOPMENT AREA Large scale, multi-product development ▪ Helium discoveries in JXSN#1 – JXSN#4; gas bearing columns of up to 230 feet and up to 6% He ▪ Confirmed previous interpretations of historical well logs at Denton B#1 and Colorado #B-1 wells ▪ JXSN well flow rates as hi
Slide 23: The Next Development
THE NEXT DEVELOPMENT Commercialising Galactica/Pegasus Larger-scale project with Current Evaluation Workstreams • Further engineering and market work underway to refine planned multiple potential product development configuration and forecast helium and CO2 streams production and cost estimates • Ra
Slide 24: Galactica / Pegasus Cross Section
GALACTICA / PEGASUS CROSS SECTION 7% He? 3% He 6-4% He 230 ft Gas 233.5 ft Gas 101 ft Gas 4-6% He 3.1% He 222 ft Gas 24
Slide 25: Exploration Upside
EXPLORATION UPSIDE LARGE-SCALE, MULTIPLE PRODUCT DEVELOPMENT 25
Slide 26: Blue Star's Las Animas Leasehold
BLUE STAR’s LAS ANIMAS LEASEHOLD 2023: advance exploration portfolio, including additional independent prospective resource evaluations 2024: Exploration drilling of high YAMATO ranked prospects GALACTICA/ DEFIANT PEGASUS 8.8% CO2 RED DWARF ENTERPRISE 8.8% VOYAGER 3.1% MODEL 4-6% GALILEO Gas on Logs
Slide 27: Substantial Shallow Resources & Deeper Plays
SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS 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 28: 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 28
Slide 29: 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 30: Appendices
APPENDICES 30
Slide 31: The Leading Helium Pure Play
THE LEADING HELIUM PURE PLAY Premier quality development asset opportunity Desert Blue Star Helium One Grand Gulf Company Mountain Renergen Avanti Helium Royal Helium Noble Helium Total Helium First Helium Helium Global Energy Energy TSXV: DME; TSXV: HELI; ASX: BNL JSE: REN; ASX: LON: HE1 TSXV: AVN
Slide 32: Helium: Unique, Rare and Highly Valued
A unique set of physical and chemical properties ▪ Non-toxic, non-flammable, low-density gas ▪ Chemically and radiologically inert ▪ Ultra-cold boiling point (-269oC), stays liquid at absolute zero HELIUM: ▪ High thermal conductivity ▪ Lighter than air UNIQUE, ▪ Small (leak detection) RARE AND HIGHL
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
Slide 35: Data Sources
DATA SOURCES Slide Description Source Currency conversion rates: CADUSD 0.75; AUDUSD 0.67; GBPUSD 1.27 (3 Jul 2023) Blue Star Helium – Investor Presentation, May 2023 Desert Mountain Energy – Investor Presentation, June 2023 Renergen Ltd - Annual Report to Shareholders, June 2023 Helium One Global –