Helium One Global (LSE:HE1) — Investor Presentation

0:02 Good afternoon, ladies and gentlemen. Welcome to the HELIUM ONE GLOBAL LTD investor presentation. Screen. In today's presentation, the company may not be in position to answer every question it receives during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your investment company dashboard, and you'll be notified once they're ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, we'd like to submit the following poll. And I'd now like to hand you over to David Minchin, CEO of HELIUM ONE GLOBAL LTD. Good afternoon, David. Good afternoon, and thank you everybody for attending. It said there was 270 people in the in the room waiting to join this call and over 500 p people who said they would attend, which is a great result for for a tetologist with speech impediment. It's a dream come true.

1:08 But it's good to be able to reach out to so many people at the same time and to have so many people interested in our project.

1:15 I will switch off my camera now so we can focus on slides, and I'll just take you through the presentation. For those of you who haven't heard me present before, as I've said, I'm a geologist. I'm a I'm a technical guy. This isn't going to be perhaps the same quick slip presentation you'd get from a pump and dump CEO, but I'm that's not why I'm here. Was here to talk because I was asked to come in because I'm I'm a I'm a geologist, I can get things done, and I know how to get things done in in Africa. I like to think for over the last four months, I've delivered quite well and looking forward to continuing with our delivery over the next six six months as we move from exploration into appraisal.

2:05 Quick disclaimer statement. You can read it quickly if you like. I'll move on to a background on the project. So as I said, I'm a geologist. And when I look at a project, I I I looked at it from first principles. Technically, is the project outstanding? Is it something which I'm prepared to commit my time and my reputation towards? I can't change what's in the ground, but from what I've seen at the moment, this is a genuine world class project. It was the unreleased perfective recoverable helium resource of a 138,000,000,000 cubic feet. It's it's enough to provide the entire world for more than twenty years or a meaningful 10 to 15% of global demand for over a century. It's got helium bubbling up to the surface at up to 10 and a half percent. That's between fifty and two hundred times higher grade than anything which is currently in in in production, and it's not associated with with hydrocarbons.

3:04 That means that this helium that we're exploring that we could produce is going to be part of the transition from a carbon economy to a green tech technology. And that's something which is very interesting for me from a personal point of view, and which I think that buys into a lot of people's investment mandates now As we transition into a zero carbon economy, being able to break that link to hydrocarbon for provision of helium, which is a critical element, is is is essential. So all of that adds adds up to make something which I say is a globally strategic resource. I'll I'll come back to that phrase strategic later and explain what I mean by it and why I think it's a strategic resource.

3:50 But first of all, I'm gonna give a quick background to HELIUM. It's always good. I know that for we've been in the market for four months, but there's there's new new people who've invested in the last few months. It's always good to to recap why we're interested in in Helium and what and what Helium is for. So I I like this chart here on the on the right hand side because it sort of explains the diversity of Helium use usage from sort of low low tech applications on the top left, left hand side to high high-tech things like Hadron colliders and quantum computers at the bottom right. Now not not everyone has a quantum computer in their desk in their on their desk yet.

4:36 However, in many ways, this is the story of of Helium. It's it's a high-tech commodity that is used in high-tech applications that then become tech, that then become norm normal. If you'd had an MRI scan twenty years ago, you'd be one of very few people in the world have having MRI scans. But, currently, MRIs account for 20% of helium demand globe globally as it's become moved to something very niche in research institutes to being part of a diagnostic tool toolkits of doctors around the world. If you look at some of our other key growth areas, hard drives. So, you know, ten ten years ago, the only thing that was kept in the cloud was raindrops. Now anything that we do, every website that we click on, every purchase that we make, that data is stored somewhere, and that all needs hard drives to for it to be stored stored in.

5:31 In 2018, Toshiba released their released their first helium filled hard drive. It's a third gen of hard drives for the data centers by replacing the air gap between the spinning discs of a hard drive with with helium, which is one of the lowest viscosity and the lowest heat capacity of any gas. You reduce the energy demand of our hard drive for between twenty and four 40%. Now the the biggest cost in a data center is energy, and the biggest crisis about the cloud is the carbon footprint of the of of the cloud. So as second generation hard drives are reaching the end of their life, they're being replaced by helium filled third gen hard drives. And this is going to be a dramatic demand over the next ten ten years.

6:17 We're producing something like 4.2 zigabits of data every year. And that all gets stored, and it will all get stored on Helium field hard hard drives. Similarly, fiber optics, essentially, in our modern in our modern communicative world, There's some there's over 9,000,000,000 kilometers of fiber optic in in the world, and that's set to increase dramatically in the next five to ten years as high speed Internet is driven out across China, across India, into the remote parts of Europe and North America. And helium is essential in the manufacturing of fiber of fiber optics. It has the the the lowest molecular size of any gas. So if you want to produce something in a clean environment, you need to produce it in a helium environment.

7:04 Now any minuscule imperfection in your fiber optic is lost data. And when you're installing hundreds of kilometers of it, you can't afford to lose data over the length of your cable. So it's all manufactured in helium, but helium is an expensive prod product. But compared to the cost of a substandard fiber optic, which fails QAQC's test test testing, it's it's it's it's nothing. You know? It's a it's a it's an expensive part of a very expensive process. The same again with semiconducting chips. I know, you know, a few years ago, if you were driving a a car with a semiconducting chip in it, it would have been a high end BMW or a Jaguar. But in 2020, in the second half of twenty twenty, Volkswagen had to delay production in most of its European plants because of a shortage of semiconducting chips. That's going into just normal cars.

7:59 You know, I I can see a future in a few years' time when this semiconducting chip in your fridge, which was produced in in helium, it's gonna send information down the helium produced fiber optic cable in your street to a helium filled hard drive in a data center owned by Amazon to tell them you've run out of milk. All of this needs helium, and it's a it's an essential commodity. It's the unsung commodity in the communication age. So what we like about it is it's a diverse set of end usage. It's a high value set set of end usage. It's not tied to any one commodity. It can't be substituted. Where it's being used is because it's essential for the quality of that end pod product, and the end pod product is more expensive than the helium gas that goes into it.

8:49 And, you know, as I said, the cost of a helium gas is less than the cost of a substandard end end product. We're seeing it's a used in lots of next gen tech tech technologies. It's hard to predict their their growth, but the best estimates which we have is 6,000,000,000 cubic feet this year going up to eight and a half billion cubic feet by by 2030. Very dramatic growth fueled fueled by fiber optics, fueled by semiconductors, fueled by for the continued growth of MRI scanners as it moves from something being used in the first world to something that's being used around the world. Of course, fueled by various space programs as we go from space exploration into space exploitation.

9:34 A month ago, SpaceX launched launched a rocket into space that contained a 157 satellites and $12,000,000 worth of helium. The helium purges this unspent fuel out of the tanks and prevents from from ex from exploding. It's essential, particularly if you if you want to reuse the, reuse the rockets. And, yes, SpaceX is a big buyer of helium. So moving from the twenty first century of demand side into a very twentieth century sub supply side, At the moment, 95% of helium is sourced as a byproduct of hydrocarbon production. This production is inflexible.

10:21 It's it's inelastic as new demand comes on stream. It can't just come in to with some more hydrocarbon production, principally because the helium is at a very low grade. It's being sourced between point 040.35% helium. Very small amount of a very major billion dollar developments. Historically, for the last ten to fifteen years, the swing supplier has been the US federal the US federal reserve in in Texas. That was a strategic stockpile, which was built up during the Cold War, and, that's been depleted over the last few few few years. And as of 2019, as of last year, it's closed its door. So last year, between 2025% of global helium supplies come off the market, and that has seen dramatic price increases. Now helium is a fairly opaque mark market. It's traded in end user contracts, which are all of nondisclosure agreements associated with with with them.

11:28 What we use as a window into this is Chinese customs data on import price pricing. China is the world's largest importer of helium. It imports over a billion cubic feet a year and has got no domestic helium inside of China. By looking at by aggregating customs data data over three to six month periods, we're able to see price trends on average bulk imports. So we're seeing the price increasing from $225 per Mcf in 2017 up to $375 per Mcf by the end of twenty twenty, and it's holding there. We're hearing anecdotal reports of end users paying up to $1,500 per Mcf, which sort of highlights the need in the industry for a new source of primary helium supply, which, can be flexible to new demands, which can provide a reliable supply to end users that's not associated with hydrocarbon. So it reflects helium economics rather than hydrocarbon economics when forecasting production rates.

12:37 And we feel that we are that new primary helium supply. So I'll talk now about our project, which we've been working on since the last days of two thousand fifth and '15. We were able to take first mover advantage back then to secure a 100% over ownership over four and a half thousand square kilometers in the most prospective ground in Tanzania, which is probably the most prospective ground in the whole world. We've got three project areas, the Rukwa project, which is our flagship at the moment, and Ayasi in Balangida. Ayasi in Balangida in earlier stage, but offer very different ceiling mechanics.

13:25 They've got the same high grade seeps coming up to surface, but the lakes there are are of and they're outlined. So you get salt beds at the bottom of the lake. So potentially different ceiling type and a different trap trapping type. They're very good projects, but early stage because we've had to focus somewhere. We focus on Rukwa into the most historical data. And best logistics, we've got surface concentrations of up to 10 and a half percent between fifty and two hundred times higher grade than anything which is in production at at the moment. And we're only about 50 kilometers from the Tanzan Highway, which is the main paved highway connecting Zambia to the port of the Dar Es Salaam. I've spent several hours driving along it now, and I can tell you it's maintained a very high standard.

14:16 Tanzania is the fourth largest gold producer in in Africa. It's a established natural resources jurisdiction with several multinational resource companies up operating in the country. As of March of this year, they have a new president, president Hassan, who is very pro pro pro business and actually in in her inauguration addressed cited helium as one of the as as one of the sectors of the economy which she wanted to support in its growth, which is great news for us. Helium's classed as an industrial mineral under under the mining act, so it's it's sub so subject to a 3% royalty and a 16% government free carried interest.

15:04 Those rates were implemented in 2018, so they're they're not going to change anytime soon. We've been there for five years. We've got very good relationships in the country with all levels of of government. In fact, I spent the first three months of of this year in Tanzania meeting with various ministries, meet meeting with people in Dodoma, and Darius Salaam, meeting with people out in the field. And the levels of support which I've got from everyone has been incredible. All of our licenses were renewed in September 2020, so we've got at least five years left on our exploration licenses, but we're hoping to convert to mining licenses some point in 2022 once our once our economics studies and our ASIAs are advanced enough.

15:54 Speaking of ASIA, we have a very sustainable company. We work closely with the with the with the communities in which our our our project is housed. And that's something which is not just a optics exercise for us. It's something which I'm very proud of, and which is going to contribute greatly to the success of our project. Don't forget, we've got a hundred year life of mine. The children who are educated in the primary schools that we're sponsoring now are gonna grow up to be our engineers, managers in the future. You know, this is a long term commitment to a sustainable community in one of the most remote parts of the country. I'm very proud to be associated with with with with that.

16:42 As mentioned previously, we're also zero carb carbon. Currently, to secure a thousand liters of helium, which is enough to fill one MRI scanner, you've got to produce and burn two and a half million liters of hydrocarbon, and that is not sustainable. You know, we all have different opinions about the green economy and how long it's gonna take us to transition to a carbon world. My personal belief is that it's going to have happen a lot faster than people think, and there will be stranded assets in in this in this world. And a few of those stranded assets are going to be those large, low low grade helium hydrocarbon projects. We are a primary helium company. We are part of that transition to a green economy because we are able to produce helium without producing any hydro without producing hydrocarbon, in fact, without producing any CO two, and we will produce zero carbon helium.

17:40 And how are we able to do that? It's because the geology of our project is unique. Now as I said at the start, I'm a geologist, and I'd assess things from the, I'd say, from the ground up, actually, the underground up. And what we're seeing here in Tanzania is something which is very, very specific to the basins which we've pegged. So helium forms over hundreds of millions of years through the natural breakdown of radioactive isotopes in ancient continental crust. It gets released when that crust is broken open for for the very, very first time. But it needs a heat source to release it, which means you need to be close to a volcanic center or the helium doesn't get released. However, if you're too close to volcanic center, then the helium gets formed by carbon dioxide venting out of the magma chambers, and it doesn't form an economic accumulation.

18:34 So you need to be in a specific Goldilocks zone away from a volcanic center to get high high purity helium nitrogen gas released out of mantle out out of continental crossway. That then needs to be trapped in the systems of which which are the same the same reservoir seal trap structures that you would find in a conventional gas project. So when we did our analysis of of Tanzania back in 2015, we did a top down view, and we identified everywhere where seqs were coming up to surface, with high grade helium and associated nitrogen. And then we paved all of the areas where that was adjacent to a sedimentary basin, which has got the potential and the capacity to trap and store helium in economic concentrations.

19:29 We've got all of the ground in Tanzania, which is prospective for for this. Because of the geometry of the East African rift and where we're sat on the western limb of East African rift, you know, there's not many areas where you will find that Goldilocks zone, that distance away from a volcanic center, associated with lake bed sediments with capacity to trap. You know, if there is anything like like this, it's not gonna be discovered for another twenty years, by which point we'll have been in production for eighteen years, and we've and we'll have already cornered the market. So Yarby shocks and yuck. Shocks to you. It's too late. Our lead project is the Rockwood project. This is about three and a half thousand square kilometers.

20:16 It's our lead project because of the wealth of historical data, which is associated with with this. It was explored for hydrocarbon in the nineteen eighties. We didn't find any hydrocarbon. It's not mature for oil and gas, which is great news for us because we don't have that low value pollutant in our system to deal with. But what they did this what they did do is they left a legacy of two stratigraphic bore boreholes and a thousand line kilometers of two dimension of two d seismic. We've got the data from the boreholes. We we were able to get a hold of the original date data tapes from the two d seismic, which we were able to reprocess with algorithms that weren't available in the nineteen eighties. And we've produced very high resolution cross sectional images of potential trapping structures.

21:04 We've augmented that with, high resolution Falcon gravity radiometry flowing across the entire base basin. That gives us a lovely top down view of the basin basement contact It gives us an idea how the how the traps we're seeing in two dimensions projects out in a plan view as as well. We've done macroseep analysis to properly characterize the gas as it comes out to the ground. We've done microseap analysis to identify anomalous helium in soil, and we've identified that across the basin, importantly, not limited to two dimensional linear shapes, which would suggest it's migrating only along faults, but over potential trap structures adjacent to potential trap structures is indicating that the helium is being generated and is migrating across the entire basin.

21:52 We thought we've put everything together and developed a best estimate on risk perspective recoverable helium resource of a 138,000,000,000 cubic feet. I'd like to point out to you the the names who did this resource. It's NSAI and SRK. This isn't a think of a number type of resource. This is backed up by proper science and engineering. Another few things to point out about this p 50 of a 150 a 138,000,000,000 cubic feet. I I'd I'd said when we listed, I said that's got an in situ value of $38,000,000,000. Actually, now we know what the the imported price into China is $375 per Mcf. Actually, the in situ value of that gas is closer to $50,000,000,000.

22:42 The other thing to know about it is a p 50 means that it's a probabilistic analysis. So p 50 means there's a 50% chance that there'll be less. There's a 50% chance that there'll be more. Be because we haven't done any drilling yet, we've got quite a broad spread on our probabilistic range, and our p 10 is 520,000,000,000 cubic feet. That means there's a lot of exploration upside left left on the table. And if we did have 520,000,000,000 cubic feet, that's over $200,000,000,000 worth of gas in the ground. Another thing to point out about this p 50 is it was calculated on a helium grade of 4.2%. That's because, you know, based on a that was based on a on an on an arithmetic mean of of the helium seeps we'd measured to to date.

23:32 And since that resource was calculated, we've done a regression analysis plot plotting oxygen against helium to work out how many of our samples have got air dilution. And when you do that, you can clearly see a trend that says, you know, be coming up to between 810% in the in the in the ground. So as soon as we take our first sampler out of the ground, we could double the size of our global with resource. The question is why do we need to? I mean, we've we've we've already got the equivalent of a 20,000,000,000,000 cubic feet natural gas deposit in a conventional onshore cyst system. If this was if this was hydrocarbon, it'd be a no brainer, but it's not. And we've actually got several advantages over hydrocarbon, which there are barriers to entry at much lower.

24:21 The capital cost of this project is a fraction of the capital cost of an equivalent sized hydrocarbon project. It's a very high value gas, so you don't need to build a long pipeline to the coast. You liquefy it at site and you truck it. We're looking at sending one one truck a day. We're only 50 kilometers away from the Tanzan Highway, which is a paved highway going all the way from our site to the Port of Dar Es Salaam. We can load onto container ships leading the port and be out in the market to China, Japan, Europe. It's a very simple logistical route for African mega project. It's the the the capital cost for production of 350,000 m MCF a year is about fifth $50,000,000.

25:10 Now that's based on a on a on a top level engineering just totally using a theoretical gas composition that comes out out of the ground. If you include some production wells, perhaps some some, you know, some infrastructure to tie the wellheads together at surface, improvements for that first 50 kilometers of road to get us to Tanzania Highway. You're looking at maybe 70 to $80,000,000. The the the Northfield expansion, which the the Qataris are building, is going to produce 400,000 MCF a year of of of helium, and that's looking at a production CapEx of $28,500,000,000. So, yeah, $80,000,000 is a lot of money, but it's a drop in the ocean compared to some of these mega projects out there.

25:59 And it's a drop in the ocean compared to our our payback period. You know, that's 350,000 MCF at $375 an MCF. You know, you're you're you're selling a $130,000,000 worth of gas every year even after the government free carry royalties, corporate taxes, operating costs. Your margins are extravagant, and your payback time is less than twelve months. With a twelve month pay pay payback time so the other thing to know is that this this production is modular. You know, each of these, it comes in as as as head of of the dozen shipping containers, foot foot footprint of less than a thousand cubic feet per meters. You make it off-site in in America or Germany. It gets shipped shipped in, bolted together in site.

26:53 Once we've paid off the capital cost of our first module, we'll be in a a very good position to self finance our second module and bring ourselves up to 700,000 m MCF a year. The market need need needs it. We're then in a position to review and potentially add a third production module.

27:14 Then we'll be producing a billion cubic feet of yeah. We've got 10 to 15% of of the global mark market, and we have a swing suppliers. We're the people who paid off our capital cost, and we can play around a bit. We can increase production, drop the price of of helium, look for latent demand in the in the market, or we can increase our we can re reduce our production and increase the price of of of of helium, and take more of a margin. And a billion cubic feet billion cubic feet a year, we can keep on doing that for over a hundred years. And that's why on the first slide, I say this is the potential to become globally globally strategic. Because in a success case, we've got the capacity to be the price set header in this high-tech, high value commodity for over a hundred years, and that's the sort of thing which is quite difficult to ignore.

28:10 With all that said, what we've got to do now is find the damn stuff. So to do that, we are mobilizing our drill rigs, and we're gonna be turning them beginning early June. So in a month's time, we will have spud it.

28:27 We're using slim hole technology using a mineral drilling rig. We're we're targeting traps down to a maximum depth of about 1,200 meters. The reason why we're doing that is that the smallest mineral rig is considered this this the largest mineral rig is considerably cheaper than even the smallest hydrocarbon rig. So for the cost of one oil and gas well, we're able to do three helium wells, and I hate wasting money. Rigs already mobilized. The equipment has been collected as a forward yard in Bayer. It's about a 100 kilometers away from our site. It's on the Tanzan High Highway, and we've got a secure yard there. So it's a sensible place to collect things when we're transporting goods from all all over the world.

29:13 The camp is established, and I believe it's going to be livable from next week onwards. It's got space for 50 workers and specialists. My tent is going to be the one on the front right hand side there. We've booked drilling contractor. We're using Mitchell Drilling. They've they're very supportive of the project, so much so that they've agreed to take the third whole payment and have an option to take the fourth whole payment in equity. So they're very confident that this is going to go ahead and gonna be very six successful. The other thing they've done is they've provided us with a much larger rig. The rig you see there in the photograph in the center, that's the rig that we're actually using. It's higher capacity than the one which we had originally con contracted, which gives us a lot more pull during exploration, which, you know, means that if we get in trouble with with bad bad ground, we're still likely to reach our our total depth.

30:13 But, importantly, it's able to stay on-site for the appraisal well drilling. And, you know, the that led that that triggered in April a very very successful capital raise for us as we realized that if we if we could contact contract everybody to stay on on-site, then we could shave four to six months of the of the of our

30:39 timeline as well as, you know, $500,000 in mob and demob fees. It's about time saving, which is critical. I think it's all about maintaining momentum in this market. And I think investors agreed. The the the financing was substantially oversubscribed. We went out for £10,000,000 and well, to scale p people back from a total book of over 22,000,000, which, again, reinforces the the conviction which people and institutions and drillers and service providers have in this project. We based on our own conviction on the project, we extended our infill seismic camp campaign.

31:28 We commenced that in we commenced acquisition in March and very quickly became apparent that we're getting very high resolution data back. It was answering a lot of our questions, and we decide identifying new priority targets, which we wanted to properly evaluate. So we added another 50 kilometers to make sure we properly evaluated every everything which we'd I'd identified. The guys have been out there for the last six six weeks. Pleased to report that we've completed the entire program with zero lost lost time injuries and with very, very good community relations, which consists of doing we've been driving about all over 310 square kilometer area of interest and, at times, even running vibrant size size of lines through the middle of villages, maintaining that close working relationship with with the community is key.

32:23 The data's been very high quality. It's allowed an improved interpretation of trapping styles across the basin, and it's thrown out some interesting new new new new new priorities. You know, we've identified multiple multiple traps, but, you know, we one of the with the the new an impact so a demonstration of the impact of this improved modern seismic day day data has been the identification of the Thai structure structure. Now the Thai is situated in the northwestern edge of our of our area of interest. Historically, it was very poorly defined by a single line and a quite low resolution.

33:12 It was just a noisy, dirty part of the line, but we thought there might be something there. So, you know, we included a few lines over over it just to see. What the result showed showed us was that the trap was much larger and

33:30 more robust than what than we had previously previously been interpreted. It's got a very nice three way dip closure over concurrent with gravity high, and that's over an area of between two two two kilometers wide, maybe two to three kilometers wide, and five kilometers long. We'll have a look now at some of the actual seismic data so you can see what I mean. Now straight straight away, what jumps out to me is is the quality of this and and the resolution of it. You can easily see the seismic characteristics of different stratigraphic packages, which we which we have. You can see the structures very clearly. I I should point out there's a great deal of vertical exaggeration on these, which makes in interpretation ease easier. You can also see some really subtle features, areas of bright reflectance, areas which are in the in the red sandstone, which might be bentonite beds even.

34:34 So I'm sure I didn't need to put this interpretation on because you'll have all have seen it straight straight away, but I'm helping out here. You can see clearly see in on the dip line, which is the one running southwest to northeast, you can see this lovely hoarse struct structure. Great place for trapping gas. It's popped up from the surrounding area areas. Did you know gas rises as it flows?

35:04 So it's gonna start accumulating there. And on the strike line, you're seeing this beautiful roll rollover. There's here lovely dome structure, perfect spots for accumulating gas. I've highlighted the stacked potential stacked areas of interest here, you know, at the base of lake beds and in the crew. There could be gas all the way throughout the structure because we've got, you know, nice repeating reservoir seal structures, especially throughout the crew. We've got light areas in the red sandstones, which could potentially be bentonite beds and then up up into the lake beds and even into shallow sediments. There's potential for good trapping structure for good for good reservoir seal cup couplers to form. So it's that stacked horizons, which is which has really helped us to prioritize

35:56 Thai because it allows us to test multiple horizons in a single borehole, which is then gonna help help us to assist in our targeting else elsewhere where the trapping structures might not necessarily be vertically one on top of each other. And that's why it's been been elevated to be the first one. It's it's only one of a portfolio of shallow trap struct structures, but this high resolution, high high quality modern two two d seismic data has helped to to to define.

36:33 So moving on. By moving to Thai, it has slightly delayed our our mobilization timeline as we're having to construct roads to an area in the northeast of our of our of our drilling area rather than Kusuku, which was much closer to the camp in the main road. However, it gives us a juicier target on our first well, and we've I'd rather take a two week delay than and get a better hit. So we're commencing well well one in June. Each well takes about a month to complete. While we're we're drilling, we're we're using a weighted mud, which is going to a mud recycling unit unit That's got something called a possum belly. It's hot on top of it, which collects gases as it comes out of the mud. We're we're feeding that into in into a into most respect to gas analysis.

37:30 So we can record helium read readings from from mud cuttings in real time. If we get an area of elevated helium, which will be a certain level above back base base background level, then we'll be able to report that to the market as a helium show. Then he helium show is great. It means there is helium in the system. It's a quantitative indication. So, yeah, it's a qualitative indication that helium is there. It's not a quantitative analysis of it, but it shows that the system is working and helium is being generated and stored and trapped. I'll be raising a glass to that.

38:17 What I what we would then do on completion of a hold is we run down a wireline suite. So, you know, the standard set, density, specs spectral gamma, and something called an an an NMR tool, which is that can identify porosity and hopefully identify if the pore space is filled with water or or or gas. Now this, you know, the NMR tool is designed for hydrocarbon, and helium nitrogen mix absorbs neutrons in a different way than hydrocarbon does. So having to adjust the tool and adjust our mindset to try to read this. But if we're able to identify reservoirs with a seal above them and that's adjacent to a helium show, then we have what's called a helium discovery.

39:07 And that is that's that's that's the boy. What we're then gonna try to do, though, is to flow the is to flow the well. This this isn't going to be a flow test because the the results of you know, it's only a it's only a 10 cent centimeter diameter hole, and we we we can't clean a hole that that that now. So, you know, any flow rates you you get aren't going to be meaningful. But what we want to do is to try to secure a sample of that gas, and that's because when I was talking about the resource earlier, that's based on a 4.2% of helium. If we get anything above 44.2%, then we can start imagining that our global resource is going to increase significantly because discovery in one well helps to derisk the entire basin.

39:55 So we're gonna try to flow it. We could use what's called a packer test, which is basically inflatable balloon. You put one down underneath the area of entry area you wanna test, one above. The one above is the valve. Takes a pipe to surface. You reduce the you inflate those. You reduce the pressure in the area that you test testing. Crap comes flowing in. Mud comes flowing in because we haven't been able to clean the hole, and then, hopefully, gas comes flowing out the top. And, yeah, that's when we will be pap passing around the cup and speaking in squeaky voices because that's gonna be a good day for all of us. But there's three types of discovery here. There's the helium gas show, the helium, which is the gas in mud.

40:41 There's a helium discovery, which is reservoir identified in wireline. And then there's the flow, which is when we get our sample. It's an it's an aggressive program. We're moving direct from exploration into into appraisal, from appraisal directly into three d seismic, and three d seismic directly into into engineering. We're gonna, hopefully, make these disc these disc discoveries by the end of summer. We appraise them in September, October, November. Leaves next year to allow us to focus on engineering, economic mod modeling, ASIA studies, and permitting.

41:29 I wanna get this perm permitted in 2022 so that we can start construction in 2023 and be producing our first HELIUM by the end of twenty twenty three or, stroke, early twenty four. There's a lot of there's a need for a new helium project. I've I've I've we will be able to to fill that need, and we'll be able to fill that need in a strategic way, which is gonna supply this supply this high value commodity for the next century. It's an aggressive line, but we're the right team to be doing it. I'm not gonna talk about everyone, but Ian Stalker is our chair chairman. He's a he's a persistent African entrepreneur. He's put over 700,000,000 into natural resource projects across Africa.

42:16 Knows the continent very well, and he's been a very successful biz businessman and a dealmaker in in his time. Mike, myself, I'm a geologist. Again, previously, director of geology with AMED Funds, a private equity group responsible for investing 450,000,000 into African exploration. I've worked in a range of commodities and a range of jurisdictions, and I've got a good feel for how to get things done. And we also point out James Smith, who's our technical nonexecutive director. He was formerly VP of exploration at Orca when they were doing the Songho Songho gas project, which is onshore gas in Tanzania. So a lot of directly transferable skills and contacts and a really valuable addition to the board.

43:03 And that's more or less it. I I I I titled this summary slide as a transformational opportunity, and that's because, in my honest opinion, that's that's what this is. It's transformational not just for the communities in which we're we're working, where we can able to offer multigenerational opportunities in education and employment. It's transformational for the helium sector, which is gonna get a new long term sub supply of zero carbon helium. But, importantly, it's transformational for us as a company and for you you all as shareholders. In the next six months, we're gonna move from being an exploration company with some great ideas to being a development company who has the tiger by by the tail and is holding on to the largest natural primary helium company project in the world, something which is globally strategic and something which can change the way that this precious commodity fuels the the communication age into the twenty first century and and beyond.

44:14 I'll open the floor for questions. David, thank you very much indeed for such a comprehensive presentation. And ladies and gentlemen, do please continue to submit your questions using the q and a tab situated on the right hand corner of your screen. Just while David takes a few moments to review those investor questions submitted already, I'd like to remind you the recording of the presentation, along with a copy of the slides and the published Q and A, can be accessed via investor dashboard on the Investor Meet company platform. I'd also like to remind you that your feedback is important to the company. And immediately after the presentation has ended, you will be redirected for the opportunity to provide your feedback in order the company can better understand your views and expectations. David, perhaps before we move into some of the, q and a from from today's session, we did receive a number of pre submitted questions, and I think a lot of the areas we have covered off in the presentation itself. But perhaps I could just start the session off with these if that's okay.

45:04 Mhmm. The first one reads, can you give an idea of what you'll be looking for as you drill each of the wells and what will make them a success or a failure? I actually I answered that one in part during the presentation with regards to helium shows, you know, and about then leading into so the the the show being the gas coming out with the mud as as we drill. And then, you know, that that then being that being a very qualitative analysis, which is then with with with refined by the wireline data, which we should show reservoir and seal and give us some some confidence of the horizons to then test to try to flow.

45:51 I mean, any indication of helium is a success. We we've we've got a large large portfolio of targets. Each hole that we're drilling tests are slightly different trapping style. And, you know, it the success of one, you know, even if we can't flow the gas to to to surface for whatever reason, it shows that, you know, the system is working, that helium is being generated, and helium is being trapped. And that aids our our our knowledge for the next hole that we drill and the hole that we drill after that. So anything which we learn is a positive in sort of understanding the basin and understanding the the system as a whole and de risking the entire play. That's great. Again, another question really around drilling.

46:40 And you have covered some of these points off. What are the biggest risks to drilling? How does the drilling work? Again, we've talked about that slightly, but how do you ensure you don't lose helium, probably more importantly? Yeah. I mean, the biggest risk is probably in the seal. It's it's I mean, we if if you look at the component parts of the Helium system, we we know we've got source, and we know we've got migration because we've got Helium flowing up to surface. We we know we've got reservoir, and we know we've got units which could be sealing be because we've got the two stratigraphic holes. And we know we've got trap because we've got this historic size seismic that's backed up by the infill seismic. You know, with with seal, you know, you don't know it's actually working until it's proven to work. And the same with trap. You you might look at it on seismic and go, well, this has got all the indications of being a trap until you've actually drilled it and tested it.

47:40 You you can't be sure that it's going to work. So, I mean, the biggest risk in the prod project is in discovery, and that's why we're that's why we're a 20 p share rather than a one pound share be be because we've still got that exploration risk, but still got upside to be found once once we make our discovery. In terms of drilling, yeah, we're using a land rig. It's a it's a it's a it's a mineral rig, but we're connecting to it the ancillary parts of a oil and gas rig. So it's a basically, it it's it's it's it's on track, rolls out into the area where we said we wanted to drill. We built a drill pad for it, drills down. We're using a weighted mud because if we hit a gas, we need to control that gas flow.

48:30 If we so if we if we when once we've completed the hull, we're going to cement it. If it's had a helium discovery in it, we'll be using bridge plugs, which seals the hole tight. But it it also allows us to to reenter the hole at a later date if you want to take additional measurements or or or additional samples. That's great. Thanks, David. Again, probably just on the flip side of that, you know, what happens if one prospect does not work, and what does this mean for the other targets? Yeah. Now, as I said, we're we're targeting different trapping styles across the basin. So the failure of one target doesn't necessarily mean that the next target is more likely to fail or less likely to fail. You know, it's it's it's sort of it it the failure of one doesn't mean failure of all.

49:21 The success of one increases the chance of it being as successful. But saying in this place, we didn't find HELIUM, it could be because you didn't have it migrating into that area. It could be because that style of trap for your taking where you're testing isn't working, you know, or that the seal which you thought was complete is broken. So there's lots of reasons a specific prospect can fail, which doesn't de devalue the entire basin. And just, I guess, an extension to that. What's plan b if you don't make a discovery? Obviously, we've just covered off the fact that each well could be, you know, independent as you go through. But what is that that plan b? What a pessimistic set set of questions. Plan plan b, it depends on why the system's not worked. I mean, we we we know that Wukla is being generate we know that helium is being generated at Wukla.

50:18 It's got every potential of being trapped there. If it's not being trapped, then we need to spend some time and work out why it's not being being trapped, which means a a full analysis of the dual day data and the seismic day day data. We'd go, okay. Well, actually, it's not worked in those areas that we've tested because our interpretation, which we did before we drilled as well, in which case we might go back to work well and have another look at it. Of otherwise, we've still got IRC and Ballangida. Now these are very different plays in terms of the in terms of the reservoir and seal because they got salt horizons. And salt is crystalline. It's probably one of the highest quality sealing rocks which you can have. They're at a lower development stage in work where we'd have to sort of start start again with the seismic and identifying prospects and leads.

51:06 But, you know, if if if work were, as a play, wasn't work work working, and we felt that starting at IAC and Ballangida would be the best chance of success, and that's what we would do. So a plan b and a plan c. Fantastic. We will go with plan a. David, perhaps I could just point you just to the q and a tab just on your screen there. Obviously, we've had a number of questions in from investors. And as I say, thank you to all the investors who submitted questions. There are a lot of you, and the company will review all the questions submitted today. But perhaps if I could ask you just to scan through those just to see if there are any of the burden points that you could pick out that just would add a little bit more color. Obviously, your presentation is very comprehensive, but that'd be kind of you. When when's the first drilling expected to have happen?

52:00 In the in early June. I I I reserved the right to be less specific than that because if there's a dramatic rains rainstorm or then it might be hard to get stuff down into into into the basin. When you've got multiple moving parts like like this, there's always lots of scope for something to go wrong, but early June is our target. So next one says, with all the site two d seismic done, is the assessment still estimated to be a 138,000,000,000 cubic feet or has it been up upgraded? We we haven't got as far as completing a new volumetric and a new volumetric analysis yet.

52:45 We're not gonna do one before we do a sort of seems a bit unnecessary to calculate volumes and to go through that third party process, which takes time and costs money when we know that we're gonna do it anyway. So we're we're we're not re recalculating more volumes or risk weight weight weightings. The next upgrade update next update to the resource is going to be once you've made a discovery and once you've gone through appraisal, which will then include a update on resource and reserves. We've talked about risks.

53:35 Let's just no questions. Another question about chance of success, but I'm not going to do that. So you've mentioned your helium would be hydrocarbon free. Is there an opportunity to increase market pull by color labeling helium derived gas in the same way as hydro as hydrogen as well? Yes. We've we've not at this stage, I'm entirely focused on disc on discovery, so I've not gone into mark marketing, signing any offtake agreements, etcetera, and so forth. But if you're building a if you're if you're Tesla building your car and it's got x many semiconductors, you'd want to know that they're green manufactured rather than hydrocarbon manufactured.

54:29 Increasingly, the drivers for organizations to be able to to say what the carbon footprint of their product is. And, yeah, I believe I believe it would be a differentiator for green helium, especially for end users who who who are who are who are conscious of building green green products and feeding into that green economy is something which I'm really, really interested in. As a geologist, will you have on-site basic analyst and equipment to give you a rapid, rapid day of initial results? Yes. We've got a mini RUDY mass spectrometer as well as a second mass spec spectrometer provided by GLOBAL, who are are mud mud logging consultants, and they'll both be giving real time results from the mud as we circulate it.

55:24 I I could do this for hours. You mentioned HELIUM ONE has potential to be priced at, etcetera. What's the risk if this market becomes quickly regulated or self managed like OPEC? At the moment, it's all it's all it's not a freely traded. So for you to regulate a commodity, which is traded through user to use from supplier to user con contracts, private company to private company is rather difficult. So I I don't think there would be a step to regulate the helium. What you might find is in the event of a long term shortage and scarcity of of helium, regulators might step in to try to secure their supply for strategic use usage such as military and space development.

56:30 However, if we come into production, I think the the the chances of there being a longer term scarcity is is is is not going to occur because, you know, if if if it looks like you'll be undersupplied, it it it's relatively little little capital for us to build a new production line and for us to increase our our production rate. So I I think the regulation isn't really something which I'm concerned about at this moment. I'm sorry. There's several 100 questions here. David, sorry. We're just coming up to the hour, and I know there are a number of questions.

57:21 So we can come back and and and address these in post responses where appropriate to do so on the platform. But if there are any further ones just that you'd like to address or, alternatively, we just give a small wrap up for investors before we redirect them to give you some feedback. Yep. What exactly is the composition of a gas sweeping out of the ground? Well, the the gas we've got coming out of the ground, which we measure the surface is 10 and a half percent of helium and 90% nitrogen. So it's it's a very pure binary gas, which feeds into a very simple processing, which we which we envisage. Of course, the actual results of what gas coming out of the ground will actually be depends on on the drill bit.

58:08 And, really, that's so so much of what we're talking about here. You know? It's the next six months makes makes makes makes the project work. I mean, we're we're we're we're a 20 p stock at at the moment, and that's because there is risk still in in in inside of our project. When when we make a disc when when we make a disc a discovery and it's derisked, we're able to start focusing on things like, you know, the the engineering, the marketing, you know, the the how much how much we need to build our plans, how many how how we're gonna mark market it, how we differentiate ourselves as a green as a green as a green company. Yeah. We'll be in attracting institutional investments. We could, you know, we would be a big company. I can't tell you what the share price is going to be, but certainly, with this de risking step, we'd be expecting to host a party.

59:08 On that note, David, I'd say thank you very much indeed for updating investors today. Could I please ask investors not to close the session as you will automatically be redirected to provide your feedback? If you do please take a few moments to give your feedback, we'll be greatly appreciated by David and the company. On behalf of David and the management team of HELIUM ONE GLOBAL LTD, we'd like to thank you very much for attending today's presentation. That concludes today's session. Thank you, and good afternoon. Thank you, everybody.