Helium One Global (LSE:HE1) — Technical Investor Presentation

0:01 Good morning, and welcome to the HELIUM ONE GLOBAL LTD technical investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Question are encouraged and can be submitted at any time by the q and a tab situated in the right hand corner of your screen. To click q and a, scroll to the bottom, type your question, and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to David Minchin, CEO. Good morning. Good morning, everybody. I'm David Minchin. I'm CEO of HELIUM ONE. I would actually like to start this presentation with an with an apology. Paul. I thought the game started at 10PM, not 10AM.

0:49 I understand, you know, as a Welshman, I don't often need to pay attention to World Cup schedules. In fact, I haven't had to in my lifetime so so far. However, like me, you probably paused it after the first half, and I'll be I'll be watching the rest straight straight after the game. If anybody wants Do you put score updates in so on to the business of the day, healing one. So this as you as people know, we've had a long year of HELIUM

1:29 ONE. And this we've had to battle operationally against the headwinds of some of the highest oil prices in history, low rig availability, and and the and the challenges which have come with that in a in a preparing our exploration program to make our discovery drilling in Rukwa. I'm pleased to announce that we have now overcome all those challenges. We have a rig six secured. We have services secured, and we're ready to drill in q one of twenty twenty twenty three. With that in mind, I thought this would be a timely opportunity for us to, present a technical presentation. This is sort of updates on what we've done over the last twelve months from a subsurface point of view and from an operational point point of view. The work that we've done in advancing the Healing One project and in and in making sure that we're ready we're ready to give us the best chance of making a discovery when we we recommence exploration drilling early next year.

2:36 So this is going to be quite an in-depth presentation. If this is your first HELIUM ONE presentation, it's probably not the ideal place to start. It's it's focusing more on long term holders and people who are actively acquiring on the on the market and a chance for the technical team to to tell you what we've been working on. Over the course of the presentation, I'll be hand

3:06 to Lorna Blaise, our principal, who's knowledge of African systems. And Mike Mike Williams, our head heading superintendent, who is, experiencing in organizing, having operations in remote parts of of of the world, and, again, a highly focused af African operator. There would be a bit of q and a at the end, as we said. Me, I'm just going to quickly talk over Healing One, and we talk everyone through a brief market ups update on what's happened in the helium sector over the last twelve months. There's been a lot of change. So Healing One remains focused on development through discovery. We are exploring the local basin in in Tanzania, which is a world class province for plan we heal heal helium. This is high grade helium without associated, hydrocarbons or or greenhouse gas emissions.

4:06 We have an advanced, exploration project at, where we are returning to drill tie, where we have got all the indications of a working helium sys system and, our best chance of making a discovery to go and lock an entire province of three and a half thousand square kilometers of licenses. Helium demand has remained robust. As I've talked about previously, helium has a range of properties which makes it unique and unsubstitutable in a range of high value, high-tech applications. In it's in the use of broad range of end users, and it cannot be substituted. There's been significant demand growth if you look at this chart here comparing the 2019 demand sector compared to 2021 sector sector, you can see that the strongest growth has been in the in the electronics sector. This is in semiconductors, and in fiber optics.

5:09 Helium is essential in the production of these, high value and high demand, sectors, and we've all seen and heard heard about the troubles, that, the western economy has securing enough semiconductor supply. These are important, and this is to to driving strong demand. In fact, the the increase in in demand has priced out a a lot of the lower value app app app applications. We believe there is a latency in in demand which would be accessed with the greatest supply. The supply side itself, however, is looking pretty grim. At the start of the year, the Russian invasion of Ukraine knocked about 2,000,000,000 cubic feet of supply of the outlook.

5:59 This is the Amur project in Russia, which is now not going ahead. There are no Western helium companies which want to be involved in in in in that, and all of this extra supply is not happening. This leaves a huge gap in the in the in the market as existing, byproduct producers of helium from hydrocarbon cannot increase their production to fill this gap. This is why there is a requirement for new helium discoveries to be made and for new primary helium projects come on on onstream to fill this dramatic shore shortfall. The the the helium shore shortage which triggered in 2019 by the close of the US Federal Reserve, is not going to end. There is no light at the end of the tunnel unless discoveries are made.

6:54 This is obviously reflected in pricing, which has seen a strong 8% CAGR increase over the last twenty twenty years, but has seen astronomical increase over the last few years. We, again, use long term import pricing into into China as a window into into into into the market. And we're seeing contract pricing at over $400 per MCF, which is the first time that it's broken through that ceiling. We're also seeing spot price at over $1,000 in MCF for smaller cargoes. This is driven by this huge demand of a lack of supply. People will secure helium at any price.

7:43 And on Tuesday, I saw we saw an announcement by NASA that they have inked a deal, to secure one approximately 1,200,000,000 cubic feet of helium over the next five years, a fixed price of $920 per thousand cubic feet. So per MCF, $920 for NASA. Now that is, higher than the current Helio price.

8:19 We assume you the rationale is which we're we're scientists at NASA believe that over five years, the price will exceed $920 per MCF, and they will be receiving a bargain. And, also, there's a desire to secure helium, which is irreplaceable for the ambitious space programs we have planned. Well, obviously, the scientists from NASA think that helium price is heading to the moon. And this is where we come in with our exceptional project at Rukwa, which can take advantage of this shortage of sub supply, this high demand, high price environment to really maximize on the benefit for our shareholders.

9:07 With that,

9:17 A brief update on Lola at HELIUM ONE Thank you, Lola. Thank you, David. Lost you there a little bit at the end, but I think you had finished up. So good morning to you all, and thank you for dialing in for this session. I'm Lorna Blaser, principal geologist at HeLIM ONE, and it's my job to now walk you through some of the technical work that we've been undertaking to date across our projects in Tanzania. So So many of you will be familiar with helium projects and others of you less so. So I'll take you through what what this clean, low carbon, high demand resource means to us, not only at HELIUM ONE, but also, you know, to Africa and ultimately the rest of the world, as as Dave has just alluded to. Helium is a commodity that's in in very high demand, but also in in very short supply and that is irreplaceable in many of its uses.

10:07 Currently, we hold just under 3,000 square kilometers of licensed areas in Tanzania, encompassing the Rukhwa Rift down in the Southwest corner of the country, and also the Balangida and Ayasi Rift Basins up towards the North. And all three of those basins sit within what we refer to as the East Africa rift trend. It sits within our acreage sits within high grade the largest high grade undiscovered helium resource in the world, given its unique geological position within this rift trend. And we're well positioned within areas of known surface helium seeps, which have up to 10.6% helium, which is which is huge. We successfully drilled our first well last year, which enabled us to significantly derisk the Rookwa Basin as we were able to encounter multiple intervals with identified helium shows.

11:00 We're a very small team. We've been very busy, but we're fortunate enough to have an experienced and focused management team and and also board. Some of you will already know that the company was founded in 2015 by a couple of mining geologists out in the field in Tanzania. They were made aware of seeps that were actually identified back in the nineteen fifties. They went out to the field in their in their land cruises and resampled these seeps. But they didn't they didn't go alone. They took leading noble gas global experts. They went along with Chris Valentine, who is based here in The UK at the University of Oxford, and also Peter Barry, who's based at the Woods Hole Oceanographic Institute in Massachusetts. They resampled these seeps and also identified new ones. And the results of those studies revealed a 10 to 90% helium nitrogen mix, which is huge. It's very pure. It's it's very unusual to have such a pure mix like that. And the results of that work yielded that the helium was derived was a helium four isotope, which is derived from radiogenic decay of uranium and thorium deep within the Earth's crust.

12:10 It is the deep seated crustal breakup between the Tanzanian Craton to the Northeast of the Rukhra Rift and and the South of the Eacian and Ballengida Rifts, and sandwiched between the Tanzanian crust from the Ubendian Belt, which over geological time has broken up. And as a result, this has set up a unique geological setting for helium occurrence. We refer to our licenses in Tanzania as being located in what we call the Goldilocks Zone. Because essentially the geology here is ideal for this helium accumulation or helium release and ultimately accumulation to occur. As well as the of the alpha decay of the uranium and thorium within the ancient crust, the cratons also undergone a correct thermal regime that's necessary to to release and liberate that helium. And everything has to has to occur in the right geological sequence for it to to be released into into that sweet spot.

13:09 Research by the University of Oxford has undertaken a study a number of several years ago that that suggested that over 700,000 BCF of helium has been generated within the craton over the last two and a half billion years. Obviously, the question is, where is it? And and how do we tap into it? We know it's there. We have evidence of it in the surface seeps, and HELIUM ONE are now fortunate to have that downhole information as well. So our focus now is to be the primary, first primary helium explorer to confirm the presence of helium in Tanzania and pave that way in exploring for it in Africa. This slide shows the extent of our currently held acreage within the Rookieurif Basin. We've just undergone a recent relinquishment of a number of our our licenses, and we currently hold around 1,900 square kilometers of of prospecting licenses in Rookwa.

14:06 And we hold another thousand square kilometers split across the Eaci and Ballangida Rift Basins. The timeline on the right hand side of the slides highlights the steps that HELIUM ONE have taken to get where they are today. The basin was was actually first explored back in the eighties by by AMECO, an oil and gas explorer. And they went out and acquired 2,300 line kilometers of onshore and offshore legacy two d seismic data. They then went on to drill two wells in the basin. They drilled the Avuna well, just north of of our Thai well, and the Gulula well down in the Southeast corner of the rift. They were prospecting for hydrocarbons, and both both wells were dry holes. They they were abandoned, and and Lammaco exited exited the basin and never returned.

14:53 In 2015, HELIUM ONE were awarded their first licenses after validating those surface seeps and and brought with those with those experts from University of Oxford and and Woods Hole. And quite quickly thereafter, they in 2016, they went out and acquired soil gas surveys across the onshore areas. So this enabled them to cover much sort of large areas of of ground and validate those seeps even further. And they also went out and acquired an airborne gravity radiometry survey covering over 15,000 line kilometers in Rukwa, and also a slightly smaller survey up in up in the Ballangida Basin, over 1,500 line kilometers. And then early last year, which is when I come on came on board, the company set out and acquired 197 line kilometers of two d seismic.

15:47 And the purpose of this survey was to firm up leads that were previously identified on the on the vintage Amoco two d seismic. And then as many of you will know, in June last year, we spud our first well on the Thai prospect. After drilling Ty and and and towards the end of last year, we went out and acquired a second two d seismic survey. I'll show this on the next slide. And we also acquired a multispectral satellite spectroscopy SEEP study to enable us to further identify additional surface helium seeps, as well as a shallow electrical resistivity or what we refer to as an ERT survey to aid identification of any any shallow gas. So it's been it's been a very busy twelve months. We've we've not been sat around drilling our thumbs. There's there's a lot of work that's been going on, and we're now continuing to plan for our drilling campaign next year, which is is gonna keep us even more busy.

16:48 The image oops, sorry. Next slide. The image here on the left illustrates the amount of data available to us back in 2016. You can see the AMCO seismic illustrated by the white lines. They overlay the AGG survey. You can also see the identified surface helium seats, which are represented by the blue blue triangles. It was it was this interpretation of this this sparse two d AMCO data that led to the identification of those those early leads and enabled the company to focus their sort of area of interest over time to to come in and acquire the infill seismic. So the same image on the right highlights where where effectively we are today. The additional infill seismic was acquired. So the phase one survey is highlighted by the yellow lines, and the red lines to the north represent the the phase two work, which was planned along the sort of northern extension of the regional highs, the Thai High and the Itambula High, as well as against the the rift margin itself.

17:54 Because these rifts are active present day, there's very extensive faulting that's occurred over time and also more recently. So we've been guided by not not just the seismic, but also surface expression of these faults that you you can see quite clearly on satellite imagery. And also the AGG data. This proved to be incredibly incredibly powerful dataset to us and enabled us to firm up quite a complex fault correlation on sparse two d and and gave us confidence in what we what we were attempting to map out.

18:27 So the work last year, including including the whirl, provided a a sort of proof of concept for us. It's enabled us to reduce our our exploration risk in in in the Rooka Rift Basin. And drilling the tide prospect demonstrated to us that we very much had a working we have a working helium system here. We have good evidence of good to excellent quality reservoirs, the presence of thick ceiling units, and also those fundamental helium gas shows that were identified during drilling at multiple prospective intervals from surface down to TD, to total depth. The shallow ERT surveys were acquired earlier this year. They they were focused over some higher ranked prospective areas, the results of which we're we're still still integrating into more of a regional story.

19:20 Working as a geoscientist is very much piecing together a very large jigsaw puzzle with very, small pieces. So it it does take time, and the story does continually evolve. But it it's been a very useful power useful dataset for us. This slide illustrates part of the multispectral satellite spectroscopy study that we conducted over the entire license areas across all three basins this year, the beginning of this year. This technique has has actually been very widely used onshore Australia and and The US for similar similar projects, not just helium, but also hydrogen, and has proved to be very successful. I was fortunate to see some examples of of this work prior to conducting it ourselves. It's identified abundant near surface helium anomalies for us with within our acreage across all three basins, which is obviously supported by those surface seeps that that that we we know about.

20:18 We were then able to integrate and calibrate it to the seep information that that we have. And ultimately, that's improved further our understanding of of helium migration within the basin. The the two examples I show here are actually of the Ichtenbula seep close to Thai. And the example at the top of the slide is is the Thai prospect. And you'll note that there's there's quite a large surface anomaly located just off structure to that against against the main bounding fault. So, you know, I I've done quite a the team have done quite a lot of work evaluating these anomalies and how they how they might fit with this the subsurface structure, but also that that surface expression as well. So sorry. Just changing the slides. Located the the rift the Rukhra Rift is located on the western arm of the East Africa rift system, and it's thought to be quite a lot deeper than the number of the the other rifts in the trend.

21:16 It's it's undergone in a slightly different tectonic regime. We understand the tertiary rift sequence, which is is the younger sequence to be comprised of continental fluvial deltaic sequences made up of what we refer to as the red sandstone group and also the Lakebed formation. And the Rukwa Basin is actually is actually quite unlike a number of the other basins along the East Africa rift trend. It's underlain by much older Permian Karoo sequence, which you don't see elsewhere in in the East Africa rift. You're you're focusing more on the the the tertiary tertiary basins. And that Karoo sequence sits on top of ancient Protozoic Archaean basement. I mentioned that at the beginning about it being the the source for the helium.

22:02 And you'll notice on that stratigraphic column in in central part of the slide, you see where we've identified where we encountered those those helium shows whilst drilling the tie Taiwan a well. That's represented by those those blue circles. So, you know, multiple intervals from from surface to to TD where those helium shows were encountered. As geoscientists, we we very much understand the helium system to be analogous to to that of the petroleum system as the table shows. The the main differences really are that the the source component, you know, here with helium, it's it's radiogenic. It's it's not relying on what we a sauce rock or a kitchen that we we refer to in in the petroleum world. And also maturation.

22:49 You know, we don't require that source rock to be cooked, to be buried deeply, to be thermally mature. We still do require the long period of geological time because we need to allow that alpha decay process to occur and generate and release sufficient sufficient volumes of helium. All of the other components for all intents and purposes very much remain the same, or we're adopting the same exploration techniques that have been used in the petroleum world for decades. So our exploration model basically considers all of those other components to be the same.

23:31 This geoseismic section through the southern half southern half of our AOI in Brookquare highlights the types of plays that we're targeting in in in our exploration program moving forward. The interpretation of the phase one and phase two two d seismic illustrates the presence of those classic sort of continental extensional rift faults that you you see within these rifted basins, rotated fault blocks relying on on cross fault seal or or fault sealing properties. The Rook Basin has also undergone some localized inversion controlled by underlying older shear zones, which has led to the development of some faulty three way closures like that that we see we see at Ty. And it's these deep seated faults that extend all the way into basement, you can you can see from the diagram, and right up into the shallow stratigraphy, which we believe to be the main conduits for the helium to migrate up through through the stratigraphic section.

24:28 The red sandstone group is is very high net to gross. It's predominantly sand. It's very few claystones or interbedded shells within there. And it's it's our understanding that this is likely to act as a as a carrier bed through the basins, you're moving that that helium laterally and and vertically through the system. As well as structural styles, we're also exploring for stratigraphic closures as well, the most of unconventional closures, particularly along the roof margin. And, you know, we're also considering other play types like fractured basement plays as well.

25:04 This slide summarizes what the Thai Taiwan world drilled last year. So it targeted this robust, large, faulty three way closure that was mapped at multiple levels. The map here is showing it at the the Karoo level. And the well it was intended that we would reach basement. This this was actually our secondary target. But, unfortunately, as as I'm as I'm sure you're all aware, we encountered many technical issues with with this well and had to to TD the well early. However, as I mentioned, the HELIUM shows were there. They they were backed up by Minnie Moody and Micro GCMS pumped into the flow line. And we had these shows encountered above above background throughout the Karoo, Red Sandstone group, and and the Late Bed sequence.

25:55 So these results have been significantly encouraging for us as a company, for the basin, for the play, and it's our objective early next year to to redraw this this Thai prospect with a with a bigger rig, a conventional and gas rig with with much better technical capabilities. The challenges we faced last year were were partly due to using a small mining rig with limitations on its mud system, logging capabilities in in a in a slim hole hole design. You'll you'll see on the text there some of the challenges. I I won't labor the point. I think it's been a learning curve for all of us, and and moving forward to next year can hopefully only mean better better things. As a company, we obviously remain focused and committed to redrilling of Thai and hopefully making a discovery on the Thai structure.

26:51 This slide attempts to illustrate some of the new mapping that's been undertaken over the over the tie structure, integrating that new phase two two d seismic that that we acquired last year, as well as those surface seep anomalies from the multispectral satellite spectroscopy study. And the new dip lines over the structure, which previously with last year when we drilled TIE, we we didn't have we didn't have those additional lines. We we had strike lines over the structure from the phase one survey. And these new lines have confirmed the position of of that bounding fault, the the western bounding fault that we that we always knew was there, but we we didn't quite know the exact

27:33 the exact sort of location of it, given that we were dealing with with strike lines. So we now know that we we actually intersected this fault where previously we we didn't think we had. We now have a better understanding of the angle of that fault and and where the well penetrated. And as a consequence of this, you know, mean, this is this is this is part of frontier exploration and and using two d data. It it it it it does happen. As a result of it, the late bed sequence was tested out of closure on the hanging wall side of the fault. And, therefore, any additional sort of upside on the late bed levels potentially potentially missed. And similarly, the Karoo target using those additional lines has mapped out to be slightly slightly larger than we had previously, And there's potential that there's now an up dip upside just to the north of the structure that we had had previously miss misunderstood or or not have the data to fully evaluate.

28:38 But the tie structure still is very much remains our lowest risk within our portfolio. It's it's our largest mapped prospect. And we're very much excited by redrilling that next year and and to see what those results will will bring. Let's not neglect the other basins. By default, obviously, lot of our efforts have been focused on Rukwa, again, being a small team. And we've got to push on with the work program over Rukwa for the next phase of drilling. However, AISI and Ballangida have have not gone unnoticed. I'm busy working working those up in parallel. We actually had a team out in the field earlier this year to Ballangida to revisit some surface seep locations and using the multisatellite

29:28 spectroscopy work to to ground truth some potential new seeps out in out in Ballangida. We're also currently undertaking a gravity magnetic study with with GTEC here in the here in The UK to evaluate the the depth of basement and and better understand the rift geometry in in both of these basins with ultimately a view to hopefully planning planning some seismic next year. That's ongoing. I've seen some first deliverables of of those of that study this week, which is very exciting. Some really interesting results there, which I'm sure we will we will share in due course. So right now, our immediate focus is is obviously on the drilling campaign for for Rukwa next year in q one and where we can we we will re re enter redrill the tight structure with a conventional and gas rig and hope to demonstrate that there is an accumulation of helium.

30:26 I've probably spoken for too long. David is probably hitting his head against the wall because I've been talking too much technical and too much geology. So at this point, I'm going to stop, and I will hand over to Mike Williams

30:38 who is our drilling superintendent, and he will take you through the operational side. Perfect. Thanks thanks, Lorna. So as as Lorna said, my name is Mike Williams. I'm the drilling superintendent for HELIUM ONE. And, today, I'll be running through the operational update of of what we've been up to as a team and, and what we're planning to do later this year and into q one twenty twenty three. So as as Lorna rightly said in her in her closing comments, we've we've signed an MOU with Exalo. Exalo are an international drilling contractor specializing in the onshore environments. They have excellent experience in Sub Saharan Africa, which is which is a key key area for us.

31:29 They're offering us a 1,200 horsepower conventional land rig. What does that mean for HELIUM ONE as an organization compared to, say, phase one or or or drilling in general? Well, it's it's all about more of everything. It's this more power. It's this more mud volume. It's greater pumping capacity. It's greater well control. It's a rig that can use triple stands. That all gives us more capability, and it adds value to our project. So we can take this rig and take that step change that we needed to make from phase one. Also, what is absolutely hugely beneficial to HELIUM ONE is that we're taking a hot rig.

32:15 Now you you may have heard of this term before, but a but a hot rig is a rig coming directly from a previous operator. That's beneficial in a number of ways. It benefits us in terms of experienced crews. It benefits us in terms of crew competency. And, ultimately, because the equipment is being used, it means that it's certified. It's up to date. We know that it's working efficiently and effectively. And that's that's massive when we compare that to the opposite end of the spectrum, which is a cold stacked rig, or in the middle of the spectrum, which is a warm stacked rig. So this is the best option available, and we've been very fortunate enough to to secure that. Of course, Exalo have been on our radar for a while.

33:02 You would have seen in our latest RNSs and our press releases that we

33:09 did look at them very closely previously, but due to due to timing issues, they weren't available. So whilst we have pivoted very quickly over the last couple of weeks, we this is not a new area for us, so our due diligence is is up to speed and and up to date. So good news on on the drilling rig capacity side of things. We've got to remember that's only one part of of the equation, and there's multiple parts that we'll we'll be discussing through through my section here. So the next part is a well design. We mentioned that we had a conventional drill drilling rig, and this year, we're hoping to deliver a conventional well design. What does the word conventional mean in this context? Well, it's it's conventional hole sizes and casing sizes that the industry, both the oil and gas industry and the exploration industry, are very much used to using.

34:05 That's hugely beneficial again for us because that is our bread and butter. That is our tried and tested techniques. It's what we do as an exploration company and as an exploration

34:18 setup to do day in, day out. So what we are not trying to do is push the technical boundaries, which makes our operations difficult and higher risk. We're trying to do what we know we can do that has been tested in the past and that will be successful in the future. Clearly, with that conventional well design is about delivering something that's safe and efficient. Clearly, safety is paramount in operational work scopes. We are working in a environment that does carry risk from an operational point of view, and therefore designing our wells in a conventional manner, we try to minimize that risk profile. And the emphasis here is very much on doing the basics well. I'm sure we can all appreciate if we do the basics well in whatever spectrum of life we come from, that generally leads to success in the future.

35:12 So we've got a suitable rig that we're very excited about. We've got a great conventional well design that the team have been working hard on over the last couple of quarters. Again, we need to combine that with our third party services. And you'll see on the slide there that I've named four, cement, mud logging, drilling fluids, wireline. Now that's not all of them, but, clearly, for for those that are are used to exploration or or or drilling of wells, they're they're the big hitters. And our relationship with third party service companies is paramount here. And you would have seen on on previous press releases again that we've we've signed an MOU with Baker Hughes, and they're delivering our cement, our drilling fluids, wireline. This is huge news for HELIUM ONE because Baker Hughes are an internationally recognized and renowned company.

36:06 That means we are going to get quality equipment, quality people combining that with a goodwill design, combining that with a good rig, it starts to build strength and strength in-depth that we're gonna have an operational positive outcome here. What won't have escaped your attention is that we're in Sub Saharan Africa and Tanzania, and logistics is a key part of this equation. Therefore, we've had to take a double pronged approach here with using both local teams and international teams. The local teams give us that local knowledge, and it can be simple things like upcoming weather, how the road deteriorates over a function of time when we start moving vehicles over it, are there any community liaison issues, etcetera, etcetera?

36:57 We combine that with our international supply chain management teams because, clearly, we've got drilling rigs coming from outside the country. We've got capital equipment coming from outside the company, and we need to manage that. David mentioned some of the geopolitical issues around the world. That has also reflected our international supply chain management, but fortunately, we have now overcome those hurdles. When we start to talk about conventional well design and conventional oil and gas rigs, we're very fortunate that most of that equipment, if not all, comes with oil and gas certified equipment, and that's generally hit here API standard, which again is is is really good for us because we know that that equipment is designed and tested to a very high standard, not a standard that we will be pushing our our rig and our wells to, but it gives us that additional comfort level.

37:55 Lorna briefly touched on some of the lessons learned from, or the challenges from from phase one that has clearly not escaped our operational team. We've spent a huge amount of time reviewing phase one and making those necessary step changes into phase two. Some of that those changes we've already spoken about that may be around the drilling rig in terms of the size of the drilling rig or the capacity. Some of it is around logistics. A lot of it is around well designed moving to this more conventional piece. So there's there's a lot of work here. A similar message to what Lorna said in her presentation, we've not been around idle, twiddling our thumbs, thinking about what we can do. We've been incredibly busy planning the Ford Ford operations to deliver success.

38:49 What we mustn't take our our mind off and our attention off is finding a rig and drilling a hole in the ground, which is hugely important here, but it's only part of the equation. The other part of the equation is about formation evaluation. It's about gaining that information out of the subsurface that we can feed back internally to our subsurface colleagues. Again, we've put a lot of time and effort into make sure that we're using the right tools and techniques and designing a well that can accept these lock these wireline logging tools. That predominantly sits around drilling fluids. We haven't touched much on the drilling fluid piece today, but drilling fluids provide a huge part of the equation here. They cool the bits. They give lubrication.

39:41 They transfer hydraulic information. They provide hydrostatic pressure to the well, which helps wellbore stability, and the list goes on and on. So, again, the emphasis on designing drilling fluids and our drilling fluid engineering in line with our our partners, Baker Hughes, has been a massive piece here ready for the the the well formation evaluation. Clearly, the objective here is to evaluate the reservoir. We want to demonstrate this helium gas accumulation, and, ultimately, we want to obtain a downhole representative sample. So this is a sample taken from the reservoir under pressure, volume, and temperature conditions, and then transferred to the surface. During the drilling process, we'll be running various mud logging equipment so we can keep an eye on our helium shows. Lorna loosely touching that with the Mini Rudy and the Micro GC equipment.

40:38 Once we have those samples at surface, we will have an idea of the the quality and the volume of that helium, but we will crucially, we'll be sending that off for independent analysis and verification because that that gives us that that gold standard there. So there's a lot of effort here going into logging, which is the second part of the operation. So we've got to take a three pronged approach. We've got to have the right tools and the right contractor. We've covered both of them. That's Baker Hughes. We're spending the time and the effort understanding the tools, working with our colleagues to make sure that they're in the right place at the right time, prepared in the right way, and are able to detect what we need to detect, I. E, HELIUM.

41:25 We we are happy and confident at the quality and standard of Baker Hughes. So they're the first two prongs. The final prong is having that strong multifaceted operational subsurface team. You've met some of them already multiple times. Laura heads that up very well. We've also got a number of other people in that team have huge amounts of experience that give breadth and depth to what we're doing. So when we combine that together, we've got a strong operational team focusing on formation evaluation. We're also confident, and we're also planning for success. And and what do I mean by that from a kind of operational point of view? Well, some operators, some exploration companies may wish to stop once the well has been evaluated and and call it quits.

42:18 We're trying to plan for success. We're trying to think ahead. We're trying to deliver best for our shareholders and and and and HELIUM ONE as an organization. And how are we going to do that? Well, as soon as we've completed our formation evaluation, we will run casing and submit that in place. That will be cemented across all the intervals from top to bottom of the well. That enables us to suspend the well. And the emphasis here on on the suspend, not plug and abandon, which is the other type of operation, allows us then to come back once once we've analyzed all the subsurface data that we've gained from from the logging and our downhole representative samples, and we can come back, reenter the well, perforate at the the required intervals, and test the well. Now this is very much an appraisal style operation, but what we're doing here is trying to compress and combine exploration and appraisal into one well.

43:20 That is hugely beneficial for HELIUM ONE on a timeline basis. We've seen David's slides around the void in in supply and demand. So we can we can help with that by taking these necessary steps, but, also, we can deliver great value for the shareholders. We don't we may decide to drill multiple appraisal wells, but we could use this well as an appraisal well by running this casing, coming back and perforating, and then flow testing and gaining that additional subsurface information that we require. So finally, for me, some key takeaways from from my area.

44:05 We've learned a lot from phase one. We've we've put a a huge amount of effort in making the necessary step changes that we need to succeed. That work that doesn't always look very apparent from the outside looking in, but we'll pay we'll pay dividend when we start drilling in '20 in q one twenty twenty three. We've talked about the rig. We're very excited that we've got a Xalo onboard. We're very excited with the rig that they're offering us. It gives us that additional capability. It gives us that additional power. It gives us that additional optionality for when we get into the operational piece. We've spent a massive amount of time on well evaluate well engineering and formation evaluation. As I've discussed, the formation evaluation bit mustn't be forgotten when we're talking about drilling of the tie structure.

44:58 We've engaged with international third party services. We've spoken a lot today about Baker Hughes. There are a plethora of other third party service companies who are of equal standing to Baker Hughes. So please be rest assured that we've not just put all our eggs in one basket. Those eggs have been scattered across the piece, and we've used top quality organizations. And finally, maybe a somewhat slightly biased comment to to conclude with, but we do have a strong HELIUM ONE team. When you look at the people in our subsurface team, you look at our senior management team, you look at our operational team, these are all people that have worked across the exploration frontier spectrum for a number a good number of years. So when we are given the right tools and the right time frames, we have the power to enable us to succeed.

45:55 So that that concludes my my section. Thank you very much. I will hand back over to David. David, hi. Thank you. I think your mic is open just to connect. Do please bear with me, ladies and gentlemen? Just, connecting David as we speak. Please bear me one second, David. My microphone is just not connecting. David, unfortunately, seems to be having some issue with your, microphone and your connection. Just bear me one second.

47:03 Please bear me, ladies and gentlemen, just while we connect David back to the event. David, we can hear you now. Thank you very much indeed. Yes. We can. Thank you very much indeed. And the camera is not okay. But at least you you can hear me. Thank you very much, Mike, and thank you much, Lorna, for that detailed presentation. I'll thanking you, Mike and Laura first because they put their hands up to make this presentation. But I'd also like to thank Colin, Chris, Graham, Owen, Kai, Anna, Hidelis, Godfrey, Goldenny, Russell, Bronwyn, Sarah, Nigel, Robin, James, Ian, and everyone else who's been involved in, working on bringing the project to where we are now, we're we're ready to drill in q one of twenty three.

48:03 Now the discovery at Thai is just the first step for what is a long journey in this company. As Mike said, we will be completing the well as a production well, which will allow us to fast track into track fast track tie into production, targeting first first gas flow in 2024. As Laura said, we have focused in on tires, our lowest risk prospect. We've only completed additional two d seismic over less than 10% of our license air air areas. There's huge upside on our remaining 3,000 square kilometers of of license to grow the project into into into into a monster. We we've barely touched on the potential of of Iasi and Balangida where we know we've got good salt bearing horizons which can form excellent healing prop properties.

49:01 The concept would be to make these discoveries as we're producing from time and expand our production through through modular development in in Tanzania. However, as you can tell, we have a very large and experienced team, and we have a number of pipeline projects under review around the world, which would allow us to, grow Helium One into the, into a globally strategic exporter and producer of primary Helium, for, this high high demand, high value, low supply product product. That is more or less it. We have got maybe, like, ten minutes for q and a.

49:50 So do I come off the screen? No. You you you can stay exactly where you are, David. Thank you very much indeed to the team for the presentation. Ladies and gentlemen, do please continue to submit your questions using the q and a tab situated at the top right hand corner of your screen. Just while the team take a few moments to review those questions submitted today, I'd like to remind you the recording of the presentation along with the published Q and A can be accessed via your investor dashboard. Perhaps before we go into some of the live questions there, David, we did have a number of pre submitted questions, and we've had a a few of those that have got a a similar theme that have come through from those in in the live. So if I may, let me start with the first one. What is your cash position? Is this enough to cover your drilling program, or will you need to do a fundraise before drilling? And that's very similar to the likes of Tim Nicholas as well who submitted questions. Thank you to those.

50:40 Yeah. Sure. So with regards to cash position, there's not really I can't really disclose much because we're in a closed period leading into publication of our annual results. David, which is briefly lost. And imagine, we have maintained a very prudent approach to capital conservation. We have maintained a low burn burn burn rate and conserve capital where where we can. Well, this means that we do have cash in the in the bank. Then as as for a fundraise, well, I mean, the question is do people want to invest in Helium One? And if they do, why? Now we've seen the volumes in the in the market. Since Tuesday, we've had over 50,000,000 trades, which at eight p, it's a significant amount of money being traded on on on on on market. So people clearly do want to invest in Helium One.

51:38 And I think the reason why is that we have a number of short term, sorry, medium term and long term catalysts, which make holding the stock an attractive proposition. You know, in the in the medium term, we we we have we have a lot of news flow coming up with the commencement of civil's work, with the contracting of the Exalo rig, with the release of the rig from its current operations, commencement of mobilization, mast up, and eventually drilling. All of this builds a very positive critical mass as we are advancing the the project and delivering on expectations to to commence drilling in q one of next year.

52:25 However, beyond that, for the we have for a long term investment point of view, HELIUM ONE offers significant opportunity beyond the initial discovery as we fast track into into production, as we take advantage of the exceptional and unique technological settings that we have in portfolio of three of three projects to, you know, grow the company. Of helium sub supply, which is as we've said heading for a red red record price highs in a high demand, low low low supply in in environment. So it's a question of being the right commodity at the right time and with the right people and the right geology to deliver on a success of an investment.

53:26 And money spent in the ground, which we're being very, very, very frugal about and ensuring cost effective exploration tech tech techniques offers the potential to to bring good rich to add value to the project and to bring good return to all investors. That's great, David. Thank you very much indeed. Second question we've got here is, I guess, four questions and covers a number of those that we've had through as well during today's session. Can you provide more details on the drilling program? When will the new pad be ready? How many wells are you planning? Will you be flow testing, drilling appraisal wells? I know we touched on that through Mike. And will you be drilling other prospects apart from Thai? I think few of those questions have been answered in the presentation, so I won't repeat over them.

54:14 However, as said, the the the the the primary target is on Thai. We have a one plus one one operation planned. We are already relatively advanced in our contract discussions. We're having exchange draft draft contracts, and both us and Exalo are motivated to execute on contracts as quickly as reasonable. Obviously, there's a lot of commercial negotiation going on, so there's not full details I can give on things like costing and timing, etcetera, etcetera. However, the the target remains is q one, as we stated, and we have an exceptional program in a a very, very busy year ahead of us. And I say not not just between now and the end of this year, but 2023 is going to be phenomenal.

55:05 And I I I again, thank you to the team who are going to to help to achieve all of this. That's great. Thank you, David. Next question, we've got any offtake agreements in the pipeline? So offtake and indeed farm outs of all things which we would consider as part of our funding package to bring the the project into into into into into production. Off off takes, obviously, the closer you are to production, the more valuable the offtake be becomes. However, what we've seen in conversations that we've had, there is strong demand for people to secure independent supply.

55:52 You've seen that NASA recently signed a five year off take with an average value of $920 per MCF. That is to secure supply and not disrupt their operations. There are many operators out out there, Mitsubishi, General Electric, Volkswagen, all the Chinese firms which are producing and supplying semiconductors and fiber optics. They all require surety of of of supply. So off take is not something which I'm losing sleep over. That's great. And you kind of covered off the next question. We're talking about farm outs, farm ins. The next one we'll get here is what volume quantity of helium would be needed to be extracted on an annual basis to make the venture viable for the long term? So it's it's I suppose I'll answer that by talking about the margins.

56:41 The the the economic studies which we've done so far indicate a production cost, and that's an operating cost of about $20 per MCF. Obviously, there's a lot of variables which will be considered once we've done the once we've made our discovery and completed all of our all of our engineering studies, which will feed into and allow us to build a more detailed view on the economic picture. However, as an operating cost of outline, operating cost of $20 per Mcf and a sales price at $400 an Mcf plus, it becomes a very high margin operation. Capital costs, again, have been relatively low.

57:30 We've heard about $50,000,000 to further production plans of 350,000 MCF a year, which is that's that's about a thousand m MCF a day or one large truck a day. And so you can see that if you would we've completed our engineering and we've we've confirmed these these numbers, you'd be looking at a at a very low CapEx, high high margin op op operation. The ability to pay back an initial capital cost very rapidly, ideally to secure financing through debt and through off offtake to reduce the dilution to the shareholders who come in on the discovery. And to bring the project rapidly forward into into production with a high margin.

58:17 I hope that answers the question. That's great. And I think some of these questions here we have touched on, but when will the contract for the rig be signed? When will the you mobilize the rig? Will this be pre year end? And how long will it take for the rig to travel? Yeah. So contract will be executed as soon as practical. Both Exalo and I and us are keen to move that forward. Then the release date depends on the on the timeline on the existing operations. Our current expectation is for it to be released before the end of the year. However, as I said, it is engaged and contracted on other operations at this moment, and that point can move to the left or the right depending on the decisions of the current operator.

59:07 For us, I'm not you know, if if we if it if we're two weeks later or two weeks earlier, you know, this helium's been in the ground for billions of years. It's been released. It's been trapped. And for long term shareholders, you know, a two week time window shouldn't really make much of a difference. However, we understand and we are aiming for q one of next year. I wouldn't want to be more more more precise than that because of a number of variabilities around rig rig release and logistics, etcetera. However, I'm I'm confident that we can achieve a q ones a q one hedge heading campaign. That concludes the the pre submitted questions. Maybe I'll just come up to the hour, though.

59:55 But perhaps we could just click on that q and a tab. And if there's anything that really stands out at you, we we could just address those. Otherwise, we'll we'll have to respond to those post event, which we'll publish back out on the platform. But if there's anything you did pick up there, please do read the question out and give your response or direct it to the team. I'm I'm I'm anxious to score these in case some troll has put in a full time score. But They will now. I I not seeing anything here which jumps out at me. Michael Lorna, have you seen anything which you would like to address? No. Not thank you, David. Not from my side. No. I think you you covered off some of the the questions around logistics and and when the rig will come available.

1:00:52 So, no, thank you. Yeah. Okay. Well, look, we will we will review these q and a's, which will come in live. It's quite hard for us to talk and read at the same time, but we will review them, and we will publish responses as appropriate. That's fantastic. Thank you again for running through those questions and, of course, addressing the ones going forward. David, perhaps before redirecting investors to provide you with your feedback, which I do know is particularly important to you, I could just ask you just for a few final closing words, please. Yeah. Well, as I said, thank you very much to all the investors who've taken time for for listening to us. You can probably sense the the feeling of excitement that we're feeling as a management team as as we're coming closer to being able to get our boots back back back back on the ground, get the rig on-site, get it turning, make the well, test the well, prove all these subsurface concepts that Lauren has been working so hard with her team in developing to produce, you know, this this advanced ex ex exploration project and to and to identify, hopefully, world class resource of high grade primary helium.

1:02:06 It's been a long road. Thank you all for your patience. I think for 2023, it's going to be a very, very big year for for for us. There's a lot of positive news on the on the on the way. And, we're all very, very excited. So, thank you everybody for listening, and we will respond to the q and a's in the fullest of time. Thank you. That's fantastic. David, Lauren and Mike, thank you again for updating investors. Can I please ask investors not to close the session? It should be automatically redirected to provide your feedback in order that management team can better understand your views and expectations. This will only take a few moments to complete, and I know it's greatly valued by the company. On behalf of the management team of HELIUM ONE GLOBAL LTD, we'd to thank you for attending today's session.

1:02:52 That concludes today's event. Thank you, and good afternoon. Thank you.