Helium Evolution Incorporated · TSXV:HEVI
Helium Evolution — Investor Presentation (February 2024)
23 slides from Helium Evolution's investor presentation, Feb 27, 2024
Slide 1: Developing Canada's Helium Resources: Fueling the Future
Developing Canada’s Helium Resources Fueling the Future Presentation February 27, 2024 TSXV : HEVI
Slide 2: Reader Notice: Forward-looking Statements
Reader Notice Forward-looking Statements Certain statements contained in this corporate presentation may constitute forward-looking information and statements, including "future-oriented financial information" and "financial outlook", under applicable securities laws. All statements in this corporat
Slide 3: About Helium Evolution (TSXV:HEVI)
About Helium Evolution (TSXV:HEVI) A Canadian helium exploration & production company focused on developing assets in southern Saskatchewan, holding ~5.6 million acres of helium land rights: largest position among publicly-traded companies in North America Numerous Near-Term Strategic Investor Suppo
Slide 4: A Growing Need for Helium
A Growing Need for Helium There are no substitutes for Helium, and it cannot be synthesized Helium Global Demand by Market Demand Forecast by Segment1 Segment (2023)1 20211 1 U.S.G.S, company reports and Peters & Co. Limited TSXV : HEVI | 4
Slide 5: The New Market Landscape
The New Market Landscape • North American supply has significantly weakened with the sale of the U.S. strategic reserve • Political instability - Russia • As the helium market continues to evolve, greater transparency into market pricing for helium is expected Supply by Region3 Pricing Reported by I
Slide 6: HEVI's Saskatchewan Advantage
HEVI’s Saskatchewan Advantage • ESG-friendly: green source of helium as harmless nitrogen gas is carrier • Stable, safe & environmentally responsible vs other global jurisdictions • Proximity to high-demand U.S. markets and existing infrastructure • Identical drilling process to natural gas & access
Slide 7: HEVI Land Holdings Target Area
HEVI Land Holdings 275 miles North American Helium 130 miles Royal Helium Global Helium TARGET AREA TSXV : HEVI | 7
Slide 8: Mankota
Mankota • HEVI lands are adjacent to NAH’s producing Mankota pool • NAH has drilled 16 wells1 in the Mankota area Three Major Catalysts: 2-31 well2 9-18 well2 9-35 well2 HEVI’s first helium Second helium discovery, Third helium discovery; discovery confirmed in stimulation scheduled completion, test
Slide 9: 2-31 Helium Discovery
2-31 Helium Discovery INITIAL RESULTS • First helium discovery at 2-31 joint well (NAH 80% and HEVI 20%) confirmed in November 2023 • • Steady rates and pressures Flow tested at 1.3 MMscf/d and 6,000 kPa flowing tubing pressure ~4.0 • A 3rd party PTA suggested the deliverability could potentially in
Slide 10: 9-35 and 9-18 Wells (NAH 80% & HEVI 20%)
9-35 and 9-18 Wells (NAH 80% & HEVI 20%) 9-35 INITIAL RESULTS • Second helium discovery at 9-35 well ~7.0 • Following perforation, well flow tested at 7 MMscf/d and 9,000 kPa MMscf/d flow rate flowing tubing pressure after a 6-day flow test NEXT STEPS • Well to be shut-in for a 21-day period to coll
Slide 11: Gravelbourg / Glenbain
Gravelbourg / Glenbain • HEVI’S internal interpretation suggests that numerous targets on HEVI’s land display similar characteristics to the NAH Cadillac producing pool • 12-13 well drilled in Q3/23 • Cased for further evaluation • Generating Internal Targets: • Seismic interpretation underway which
Slide 12: Gravelbourg / Glenbain - Middle Deadwood
Gravelbourg / Glenbain - Middle Deadwood 16-27-9-11W3 12-13-10-8W3 • Stratigraphic X-section • Thick middle deadwood Gas Pay with pay zone 40+m Zone • Radioactive zone helium source rock Radioactive Zone PreCambrian TSXV : HEVI
Slide 13: Base Economic Assumptions
Base Economic Assumptions $600/mcf 4,000 mcf/d $2.35M $2.0M USD Commodity Price Raw gas production Drilling costs DC&T Facilities $2.0M per 1,000 mcf/d raw 1% 4.25% 10year Helium Concentration Crown Royalty Well life TSXV : HEVI | 13
Slide 14: Single Well Economics - Sensitivities
Single Well Economics* - Sensitivities Helium price (US$/mcf) $ 375 $ 450 $ 525 $ 600 $ 725 $ 800 $ 875 Helium price (C$/mcf) $ 490 $ 590 $ 680 $ 780 $ 940 $ 1,040 $ 1,140 IRR (%) 43% 57% 69% 82% 103% 117% 130% Payout period (years) 2.0 1.6 1.4 1.2 0.9 0.8 0.8 NPV ($MM) Undiscounted 33.7 45.2 55.7 6
Slide 15: Capital Structure & Leadership
Capital Structure & Leadership HEVI Share Capitalization @ February 22, 2024 Management Board of Directors Total Basic Shares Outstanding 96.0MM Greg Robb* James P. Baker* President, CEO & Director Chair & Independent Director Basic Market Cap (@ $0.21/share) (Feb 22/24) C$20.2M Patrick Mills*, P. E
Slide 16: Growth Trajectory
Growth Trajectory Helium Evolution is executing on a strategically defined path to value creation. FIRST HELIUM ONGOING TESTING STIMULATION OF OFFSET DRILLING/ POTENTIAL DEVELOPMENT DISCOVERY AT OF TWO WELLS AT ONE WELL AT ADVANCING FACILITY PROGRAM, COMMERCIAL DRILLED 11 WELLS 7 cased and 4 D&A MAN
Slide 17: Questions
Questions &3 CORPORATE PRESENTATION | TSxV: HEVI
Slide 18: Appendix
Appendix &3 CORPORATE PRESENTATION | TSxV: HEVI
Slide 19: An Experienced Team
An Experienced Team Extensive resource development expertise with a history of success in Saskatchewan Greg Robb, Co-Founder John Kanderka, Co-Founder President, Chief Executive Officer, and Director VP, Land & Corporate Development MANAGEMENT Geologist with over 35 years of experience across all fa
Slide 20: Fox/Hatton
Fox/Hatton • 11-13 well drilled in Q3/23 • True wildcat well; first well drilled in the area in ~70 years • Thick Basal sandstone Basal of 58 meters Sandstone • Intermediate cased for potential reentry • Potential drillable locations identified PreCambrian HEVI Land North American Helium Land Joint
Slide 21: Earlie Sandstone Structural Play
Earlie Sandstone Structural Play TSXV : HEVI
Slide 22: Helium (He) – a Critical Mineral
Helium (He) – a Critical Mineral Declared a critical mineral by many countries, including Canada in 2021 Regional Data Used Targeting Basement Highs The Deadwood Formation Conventional Vertical Drilling Nitrogen Carrier Gas The Deadwood Formation >0.3% He Content Considered Nitrogen charged resource
Slide 23: Developing Canada's Helium Resources
Developing Canada’s Helium Resources Fueling the Future Presentation February 2024 Contact HEVIinfo@5qir.com TSXV : HEVI
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