Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Big Star Energy — Investor Presentation (December 2019)
19 slides from Blue Star Helium's investor presentation, Dec 9, 2019
Slide 1: Corporate Presentation December 2019
For personal use only CORPORATE PRESENTATION December 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Big Star Energy Limited (ACN 009 230 835) (BNL). Each The Company may be unable to secure oil and gas leases on commercially acceptable terms in recipient of this presentation is deemed to have agreed to accept the qualification
Slide 3: Corporate Strategy: Why Helium? Why North America?
CORPORATE STRATEGY For personal use only WHY NORTH HELIUM? AMERICA • High value industrial gas • High concentration helium resources • US$300/mcf long term contract rates • Mature helium market and supply chain • High tech applications • Low cost / fast lead-time environment • Growing supply-demand
Slide 4: The Board
THE BOARD For personal use only ROSS JOANNE TRENT MICHAEL WARNER KENDRICK SPRY POLLAK EXECUTIVE CHAIRMAN MANAGING DIRECTOR EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Lawyer with 15+ years in oil and Petroleum and reservoir Experienced geoscientist with Chartered accountant and gas particularly in the
Slide 5: 2019 Achievements
2019 ACHIEVEMENTS For personal use only Targeted top-4 helium areas in USA ✓ Range of helium concentrations 5-10% in produced raw gas First mover in Las Animas, Colorado ✓ Pervasive shallow high-quality sandstone reservoir ~20% porosity ✓ Historical production analogue - Model Dome helium field ✓ 8%
Slide 6: Las Animas, Colorado Leasehold Position
Las Animas, Colorado Leasehold Position UTM 13 For personal use only Model Dome Helium Field Legend Leased Area Elevated Helium Reading 6 Prospect Name
Slide 7: Near Term Goals
NEAR TERM GOALS For personal use only Mature 5 prospects to drill-ready status ▪ Consolidate leasing ▪ Prospect-scale soil gas surveys ▪ Subsurface data integration ▪ Prospective resource estimates Plan and permit 5 well locations Success case planning ▪ Scalable pre-development engineering ▪ Finali
Slide 8: Helium Development Concept
HELIUM DEVELOPMENT CONCEPT For personal use only • 5-10 simple vertical producers • Off the shelf surface processing equipment DEVELOPMENT • One facility per 5-10,000 acre development CONCEPT • 2mmcf/d raw gas nameplate capacity • 35-70mmcf helium per annum • Plant mobilisation time to site ~6 month
Slide 9: Enterprise Prospect
ENTERPRISE PROSPECT For personal use only • Enterprise leasing position (as at 6 Dec 2019) • 12,213 gross (4,865 net) acres leased • 12.5% royalty, 5+5 year term UTM 13 Las Animas, Colorado Leasehold Position • No minimum work commitments • 5 soil gas samples collected from leased area • 10%-21% abo
Slide 10: Enterprise Prospect Schematic Cross-Section
ENTERPRISE PROSPECT SCHEMATIC CROSS-SECTION Model Dome Helium Field For personal use only 8% concentration 500-1000 mcfd Enterprise Prospect Helium Sample Anomaly leased area 6 miles Overburden Model Dome Offset Well 1.5 miles N Low perm. seal Lyons Reservoir Helium accumulation 4He Basement radioge
Slide 11: Value Proposition
VALUE PROPOSITION For personal use only HELIUM FOCUS PROVEN TEAM EXCELLENT POTENTIAL FOR RETURNS ON INVESTMENT • High value commodity • Action-oriented subsurface professionals • High leverage to success • Growing demand supply gap • Internally-generated opportunities • Low market capitalisation • R
Slide 12: Corporate Structure
CORPORATE STRUCTURE For personal use only TICKER: BNL.ASX INDUSTRY: Oil and Gas CASH POSITION: • $0.26 million cash at bank (30 September 2019) • $0.58 million in placing proceeds received October 2019 CAPITAL STRUCTURE AS AT 6 DEC 2019: • Shares on issue: 587 million • Unlisted Options: 101.875 mil
Slide 13: Contacts
For personal use only CONTACTS Big Star Energy Limited (BNL.ASX) Unit 6, 245 Churchill Avenue, Subiaco, WA 6008 ACN 009 230 835 www.bigstarenergy.com.au info@bigstarenergy.com.au 13
Slide 14: Support Slides
For personal use only SUPPORT SLIDES December 2019
Slide 15: What is Helium?
WHAT IS HELIUM? For personal use only FINITE IRREPLACEABLE RESOURCE • Generated by the radioactive decay of uranium and thorium • Accumulates in commercial quantities only in reservoirs overlain by competent seal and otherwise escapes to atmosphere • Helium does not accumulate at greater than 5ppm i
Slide 16: Helium Market
HELIUM MARKET For personal use only HELIUM MARKETING • Majority of wholesale helium is sold under long-term contract to industrial gas companies • Generally take or pay with open escalation pricing • US$250-US$300/mcf currently achievable • Present spot market significantly higher than contract mark
Slide 17: Units & Glossary
UNITS & GLOSSARY For personal use only Unit Measure Unit Measure B Prefix - billions Bcf Billion cubic feet mm Prefix - millions mmcf million cubic feet m Prefix - thousands mcf thousand cubic feet /d Suffix - per day Term Description gross acres and net The minerals in a tract of land may be owned
Slide 18: Mineral Rights in USA
MINERAL RIGHTS IN USA For personal use only 1. The system of mineral ownership and development in the USA is an interest in 100 gross acres and 25 net acres. If a second revenue interest” or “NRI”). The NRI is the lessee’s share of substantially different to the system in Australia. The following is
Slide 19: Other Assets: Texas
OTHER ASSETS For personal use only TEXAS BNL has 4 wells (3 operated) in Dawson County, Texas • Minor non-material production • Various options under consideration for the disposal of all or part of this asset. For further information see the Company’s Half-Year Financial Report for the half year en
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