Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Investor Presentation (June 2020)
18 slides from Blue Star Helium's investor presentation, Jun 1, 2020
Slide 1: Finding and developing low cost, high grade helium in the USA
Finding and developing low cost, high grade helium in the USA Company Presentation June 2020 ASX : BNL
Slide 2: Disclaimer & Important Information
DISCLAIMER & IMPORTANT INFORMATION This presentation has been prepared by Blue Star Helium (ACN 009 230 835) (BNL). Each recipient of this presentation is Net Recoverable Helium 1U (P90) 2U (P50) 3U (P10) deemed to have agreed to accept the qualifications, limitations and disclaimers set out below.
Slide 3: Value Summary
VALUE SUMMARY STRATEGY ▪ To find and develop high grade helium resources in USA (largest global market) ▪ Only helium pure play on ASX HELIUM ▪ High price commodity - US$280/mcf last BLM auction (Aug 2018), trending higher ▪ Significant demand growth in health, high-tech and space exploration ENTERP
Slide 4: Helium Supply and Demand
HELIUM SUPPLY AND DEMAND “… helium is a quiet engine of American research and business. It is essential to a broad range of technologies, from cutting-edge BNL Enterprise & Galileo Prospects Russia XXX quantum computing to M.R.I. scanners in hospitals. It has fostered Algeria LNG 8% He (P50 estimate
Slide 5: US Helium Market
US HELIUM MARKET USA – CENTRE OF GLOBAL HELIUM MARKET AND SUPPLY CHAIN ▪ 40% total market share feeding greatest demand ▪ Premium in-ground helium grades ▪ Stable, first world jurisdiction ▪ “Strategic Commodity” classification ▪ Growing concern about security of domestic supply as BLM sales cease ▪
Slide 6: Helium in the News
HELIUM IN THE NEWS “Worldwide helium shortage threatens more than just balloons” “But the world's stockpiles of helium are disappearing fast, with some predicting known stores will run out in about 50 years.” - NBC 11 May 2019 - ABC 29 May 2019 “Liquid helium has helped build billion-dollar industri
Slide 7: Helium Consumers
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Slide 8: Blue Star Helium
4 BLUE STAR HELIUM Las Animas, Colorado Leasehold Position Legend © Helium sample Prospect/Lead Name
Slide 9: Blue Star's Helium Assets
BLUE STAR’S HELIUM ASSETS First mover in Las Animas, Colorado ▪ Prime market location - low cost area within trucking distance to customers ▪ Historical production at Model Dome (500-1,000mcf / vertical well initial rates, 8% helium concentration) Model Dome Helium Field Helium play fairway PROVEN a
Slide 10: Proven Lyons Formation Helium Play Fairway
PROVEN LYONS FORMATION HELIUM PLAY FAIRWAY NW feet SE Elevated Helium Sample Anomaly below Enterprise Galileo Model Dome sea level Prospect Prospect Field feet below Blaine Fm (Seal) sea level Lyons Fm (Reservoir) Model Dome field in proven play fairway: Soil gas sampling & petrophysical analysis •
Slide 11: Enterprise & Galileo Prospects
ENTERPRISE & GALILEO PROSPECTS 3 BCF (3,000,000 mcf) P50 Prospective Helium Resource* Net Recoverable Helium (mmcf)* 1U (P90) 2U (P50) 3U (P10) • Net to Blue Star, after applicable royalties • Shallow target depth 1,000-1,200 ft Enterprise Prospect 372 2,296 5,003 • US$300k proof-of-concept dry hole
Slide 12: Development Concept
DEVELOPMENT CONCEPT ▪ Rental processing units support low cost model ▪ Staged, modular development concept ▪ 2mmcf/d raw gas nameplate capacity ▪ ~50mmcf helium per annum (at P50 He concentration) ▪ Plant mobilisation time to site ~6 months SURFACE ▪ 5 simple vertical producers (similar to proof of
Slide 13: Forward Plan
FORWARD PLAN Enterprise Drilling Program ▪ Stake well locations ▪ Well permitting and surface use agreement ▪ Contract and mobilise rig ▪ Drill and test Mature Further Prospects and Leads ▪ Consolidate leasing ▪ Prospective resources assessment/s ▪ Drill location selection and staking ▪ Well permitt
Slide 14: High Concentration Helium Resources
HIGH CONCENTRATION HELIUM RESOURCES Proven Helium Play Fairway 3BCF in Enterprise and Galileo – drilling planned 2020 ~100,000 additional gross acres over further prospects and leads
Slide 15: Corporate Structure
CORPORATE STRUCTURE Market Snapshot ASX: BNL Share Price Performance Issued Share Capital 733.747M Unlisted Options (@1¢ expiring Jun 20) 101.875M Unlisted Options (@1.2¢ expiring Dec 21) 78M Share Price (as at 28 May 20) A$ 0.9¢ Market Capitalisation A$ 6,603,725 Cash (as at 31 Mar 20) A$ 507,480 S
Slide 16: Units & Glossary
UNITS & GLOSSARY 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 1U (P90), 2U (P50) and 3U In a probabilistic resource distribution, 1U (P90), 2U (P50),
Slide 17: Mineral Rights in USA
MINERAL RIGHTS IN USA 1. The system of mineral ownership and development in the USA is a second mineral owner leases its mineral interests to the same produced from the lease until the lease expires (“net revenue interest” substantially different to the system in Australia. The following is a lessee
Slide 18: Blue Star Helium Limited (ASX: BNL)
Blue Star Helium Limited (ASX: BNL) ACN 009 230 835 Unit 6, 245 Churchill Avenue, Subiaco, WA 6008 info@bluestarhelium.com.au www.bluestarhelium.com.au