Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Shareholder Meeting (May 2023)
22 slides from Blue Star Helium's shareholder meeting presentation, May 26, 2023
Slide 1: Advanced Primary Helium Opportunity
For personal use only 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 sales from Q4 2023 High grade helium expl
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION The material in this presentation has been prepared by Blue Star Helium Limited (ACN 009 230 835)(“Company”). Prospective Resources For personal use only Net Recoverable Helium (MMcf) 1U (P90) 2U (P50) 3U (P10) This presentation may not be reproduced, redistribut
Slide 3: A Year in Review
A YEAR IN REVIEW Significant advancement of key workstreams For personal use only APPROVAL TO DRILL FIRST TWO WELLS SAMMONS 315310C (SERENITY) AT VOYAGER EXPLORATION DRILLING April June – September ENTERPRISE 16-1 EXPLORATION OGDP SUBMITTED FOR NORTH AMERICAN DRILLING & TESTING 7 WELLS AT GALACTICA
Slide 4: Las Animas: Premier US Helium Assets
LAS ANIMAS: PREMIER US HELIUM ASSETS… Extensive landholding and prospect portfolio in highly prospective location For personal use only 643 MMCF CONTINGENT HELIUM RESOURCES 13.4 BCF PROSPECTIVE HELIUM RESOURCES ▪ Strategic, large-scale land position secured ▪ 311,108 gross acres leased (225,693 net
Slide 5: Voyager Maiden Development
VOYAGER For personal use only MAIDEN DEVELOPMENT LOW-COST, WELL-DEFINED COMMERCIALISATION PATHWAY 5
Slide 6: Voyager: A Premium Initial Helium Development
VOYAGER: A PREMIUM INITIAL HELIUM DEVELOPMENT First helium production Q4 2023 For personal use only 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 Leased facility
Slide 7: The Voyager Helium Development
THE VOYAGER HELIUM DEVELOPMENT High-grade helium discovery appraisal and development For personal use only ▪ 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 heli
Slide 8: Voyager: Moving Rapidly to First Helium
VOYAGER: MOVING RAPIDLY TO FIRST HELIUM Evaluation and commercialisation timeline For personal use only Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Delivered OGDP permitting Submission of Drilling of first Drilling of 1-2 Voyager Plan approval for second OGDP for development further of Development devel
Slide 9: Galactica / Pegasus Project: The Next Stage
GALACTICA / For personal use only PEGASUS PROJECT: THE NEXT STAGE LARGE-SCALE, MULTI- PRODUCT DEVELOPMENT 9
Slide 10: The Galactica/Pegasus Development Area
THE GALACTICA/PEGASUS DEVELOPMENT AREA Large scale, multi-product development For personal use only ▪ 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
Slide 11: The Next Development
THE NEXT DEVELOPMENT Commercialising Galactica/Pegasus For personal use only Current Evaluation Workstreams Larger-scale project • Further engineering and market work underway to refine planned with multiple potential development configuration and forecast helium and CO2 product streams production a
Slide 12: Exploration Upside
EXPLORATION For personal use only UPSIDE LARGE-SCALE, MULTIPLE PRODUCT DEVELOPMENT 12
Slide 13: Blue Star's Las Animas Leasehold
BLUE STAR’s LAS ANIMAS LEASEHOLD 2023: advance exploration portfolio, including additional independent For personal use only prospective resource evaluations YAMATO GALACTICA/ DEFIANT PEGASUS 8.8% CO2 RED DWARF ENTERPRISE 8.8% VOYAGER 3.1% MODEL 4-6% GALILEO Gas on Logs DOME ARGO (8% He) 2.0% FIREBA
Slide 14: Enterprise Prospect
ENTERPRISE PROSPECT Discovered gas on logs in two wells 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 – Some
Slide 15: Blue Star: Advanced Primary Helium Opportunity
BLUE STAR: ADVANCED PRIMARY HELIUM OPPORTUNITY For personal use only DEFINED PATHWAY TO PRODUCTION: Completed plan of development at high-grade Voyager discovery (643 MMcf contingent helium resource); initial midstream pathway with leased process facility; first helium output in Q4 2023 LOW CAPITAL
Slide 16: Appendices
For personal use only APPENDICES 16
Slide 17: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only 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, 17 May 23) 2.8 ¢ $0.01 Issued share capital 1,586 MM $0.00 Feb-22 Mar-22 Feb-23 Mar-23 May-21 May-22 May-23 Jun
Slide 18: Refined Production Process
REFINED PRODUCTION PROCESS World-class extraction methodology and Helium value chain For personal use only Helium $450-$750/mcf Helium $1,000-$3,000/mcf
Slide 19: Globally High Helium Concentration Levels at Stand-out Helium Grades
0% 1% 2% 3% 4% 5% 7% 8% 6% 9% For personal use only 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 h
Slide 20: Structural Undersupply in the U.S.
STRUCTURAL UNDERSUPPLY IN THE U.S… Growing helium shortage For personal use only DOMESTIC SUPPLY CHALLENGES ▪ ▪ U.S. strategic reserve (BLM) progressively sold-off – minimal residual Supply now critically strained from recent further interruptions globally Current Status: ▪ Most worldwide He supply
Slide 21: Has Seen Strong Recent Price Momentum
…HAS SEEN STRONG RECENT PRICE MOMENTUM Supply shocks and scarcity have delivered fly-up increases in market helium prices For personal use only $5,000 BLM Price (Avg) Private Gaseous Helium (Avg) ▪ Scarcity of supply has $4,000 Spot Price (RHS) caused sharp increases in pricing China* Taiwan* ▪ Curr
Slide 22: Marketing Strategy
MARKETING STRATGEY Premium spot and short term market target to deliver optimal, price-of-the-day buyers For personal use only Leasing option avoids substantial debt Current spot and tube trailer pricing Strategy delivers flexible access to funding and undesirable execution of quotes substantially h