First Helium Inc. · TSXV:HELI
First Helium — Investor Presentation (March 2022)
33 slides from First Helium's investor presentation, March 2022
Slide 1: Project-Driven Helium Discovery, Development & Production
PROJECT-DRIVEN HELIUM DISCOVERY, DEVELOPMENT TSX-V: HELI OTC: FHELF & PRODUCTION 2MC:FRA INVESTOR DECK | MARCH 2022
Slide 2: Cautionary Notes & Forward Looking Statements
CAUTIONARY NOTES & FORWARD LOOKING STATEMENTS The information contained herein has been prepared to assist interested parties in making their own evaluation of First Helium Inc (“First Helium” or the “company”) and does not purport to contain all of the information that a prospective investor or par
Slide 3: About Us
ABOUT US “First Helium is well positioned to deliver helium production and cash flow from its Worsley property, which will drive future expansion from its substantial inventory of exploration prospects.” - Ed Bereznicki, President, CEO & Director First Helium Inc. | TSX-V: HELI | 3
Slide 4: Company Overview & Highlights
COMPANY OVERVIEW & HIGHLIGHTS The Company has a strong working capital position of ~$2.6 mm which it is deploying primarily to the development of its Worsley Helium Project, anchored by its successful discovery helium well “15-25”, and recent oil well discovery “1-30” which is expected to First Heli
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS GLOBAL DEMAND | Helium is a high value, finite resource, RESOURCE DE-RISKED | The Company’s helium-rich vital to the Aerospace, Healthcare and High-Tech sectors 15-25 discovery well is ready to be equipped and because of its physical properties. brought into production. First He
Slide 6: A Common Yet Finite Resource
A COMMON YET FINITE RESOURCE Helium is the second most prevalent element in the universe, but relatively uncommon on Earth. However, helium is very difficult to trap and store – due to its lack of density, it quickly rises and dissipates into the atmosphere. The majority of atmospheric helium is los
Slide 7: Helium: Unique, Rare and Valuable
HELIUM: UNIQUE, RARE AND VALUABLE Helium is essential in modern industrial applications because of its exceptional physical properties. There are a lack of substitutes for helium in many applications. QUICK DIFFUSION SMALL MOLECULAR SIZE NON-TOXIC ULTRA-HIGH Helium gas diffuses quickly Used to find t
Slide 8: Market Opportunity: Global Demand and Economics
MARKET OPPORTUNITY GLOBAL DEMAND AND ECONOMICS USA - shortfall in supply expected ● Final Auction from U.S. Strategic Reserve (Aug 2018) ⁴ elevates supply uncertainty 6 bcf/year ● Qatar and Russia are major suppliers ⁴ – political risk 7.6% GLOBAL Canada - huge opportunity ● 5th Largest Global Prosp
Slide 9: Demand Constituents of Helium
DEMAND CONSTITUENTS OF HELIUM Big technology companies like Amazon, Google, Facebook, and Netflix all depend on this one gas to keep their servers up and running around the clock. Helium has everyday applications in the tech and medical industries as well as space travel and national security. ● Crit
Slide 10: Peer Group Comparison Highlights
PEER GROUP COMPARISON HIGHLIGHTS “HELI” stands out from its peers with a production tested helium discovery well, and cash flow from a producing oil discovery well. PRE-PRODUCTION Imperial Global Blue Star Royal Avanti Desert COMPANIES Helium Helium Helium Helium Energy Mountain Ticker TSXV - HELI TS
Slide 11: Industry Players
INDUSTRY PLAYERS SELECT HELIUM PRODUCERS LARGE PLAYERS Matheson Parent Co. - Taiyo Nippon Sanso USA - Wyoming, Poland, Russia Air Products NYSE - APD USA - Colorado, Qatar Undisclosed (ex Riviera Resources Assets) N/A USA - Hugoton Basin BOC Limited Member of Linde Group Australia - Conoco Phillips
Slide 12: Corporate Bench Depth
CORPORATE BENCH DEPTH First Helium boasts a seasoned management team, board and advisory group with successful track records and experience in oil and gas exploration and production, capital markets and finance, helium project development, construction and project management, and mining exploration a
Slide 13: Independent Directors
INDEPENDENT DIRECTORS Todd Holmstrom Cal Watson B. Sc. P. Eng. 33+ years in leadership roles in Oil & Gas, 35 years Oil and Gas experience Mining, Wireless Communications, and Medical Devices ● Multiple roles across Operations, Production, and Reservoir Engineering, Gas ● Held the position of Presid
Slide 14: Advisory Board
ADVISORY BOARD Terry A. Lyons Tom Ebbern Calvin Winter B. Sc., MBA B.Sc, MBA Ph.D. ● Lead Independent Director ● Chief Financial Officer of ● 36+ Years Of Industrial Experience, Canaccord Genuity Group Inc. Northwest Refining Inc. Primarily In Cryogenics. ● Chairman and Director, Sprott ● 35+ years o
Slide 15: Capitalization & Ownership
CAPITALIZATION & OWNERSHIP CAPITALIZATION TABLE, AS AT March 14, 2022 Common Shares Outstanding: Basic 67.4 mm Options 6.1 mm ● Management & Directors collectively own or control Warrants 26.6 mm ~20% of the Company’s outstanding common shares Fully-Diluted (Wtd. Avg. Ex. $0.45) 100.1 mm ● Managemen
Slide 16: Worsley Helium Project
WORSLEY HELIUM PROJECT HELIUM DISCOVERY WELL “15-25” UNDERPINS DEVELOPMENT ● 15 - 25 tested at 1.3% helium content and 65% natural gas content. ● Approximately 12 barrels of condensate per million cubic feet of raw gas. ● Ready to produce, pending processing facility installation. INDEPENDENT ENGINE
Slide 17: Worsley Undeveloped Lands
WORSLEY UNDEVELOPED LANDS LEGEND Worsley Project Area FHI LANDS 26 BCF 20 BCF 26 BCF 46 BCF 22 BCF LEDUC POOLS > 20 BCF N 3D SEISMIC COVERAGE MARKET GAS LINE HELIUM CONTENT > 0.5% 15-25 Discovery Well LEDUC REEF TREND 6 MILES First Helium holds crown mineral Other formations in the area contain Mana
Slide 18: Worsley Helium Project Area
WORSLEY DISCOVERY WELL 15-25 WORSLEY HELIUM PROJECT AREA 1.3% HELIUM 10 DAY FLOW TEST @2MMCF/D WORSLEY DISCOVERY WELL 1-30 BROUGHT ON-STREAM JANUARY 23, 2022 15-25 HELIUM FIRST MONTH AVERAGE DAILY PRODUCTION OF ~430 DISCOVERY WELL BARRELS OF LIGHT OIL PER DAY (BBL/D) WORSLEY DISCOVERY WELL 4-29 4-29
Slide 19: Worsley Helium Project - Pipeline Infrastructure Acquired
WORSLEY HELIUM PROJECT - PIPELINE INFRASTRUCTURE ACQUIRED WORSLEY HELIUM DISCOVERY WELL 15-25 WORSLEY LIGHT OIL DISCOVERY WELL 1-30 NATURAL GAS GATHERING SYSTEM Acquired Gathering Lines ● 46 km of natural gas gathering lines Natural Gas Sales Line (TC Energy) ● Facilitates development across entire
Slide 20: First Helium Contingent Resources Report | Discovery Well
FIRST HELIUM CONTINGENT RESOURCES REPORT | Discovery Well Prepared by Sproule Associates Ltd. March 31, 2021¹ Sensitivity to helium pricing VOLUMES NPV 10% Helium Natural Gas Natural Gas Liquids $300/mcf $340/mcf $400/mcf $500/mcf $600/mcf mmcf mmcf mbbl $MM $MM $MM $MM $MM 323 12,632 372 $12.1 $15.
Slide 21: Worsley Project Area Proposed Development Plan
WORSLEY PROJECT AREA PROPOSED DEVELOPMENT PLAN Discovery Well plus 3 additional wells drilled in Worsley Project Area Helium Price ($/mcf) $300 $400 $500 $600 Drill, complete, tie-in cost - $2.25MM/well Helium (MMcf) 790 790 790 790 BT NPV10 ($MM) $55.0 $82.0 $109.1 $136.1 Facility expansion capital
Slide 22: Southern Alberta Helium Fairway
SOUTHERN ALBERTA HELIUM FAIRWAY RECOGNIZING THE VALUE OF EXISTING SEISMIC DATA Helium Fairway In May, 2021, First Helium entered into an agreement with a Canadian company to explore for helium on over 880,000 contiguous acres of highly prospective land in Southern Alberta near known helium productio
Slide 23: Next Steps | 18 Months
NEXT STEPS | 18 Months Worsley Property Activities Exploration Upside Activities Begin to Drill and Production Test Finalize Technical Evaluation of Worsley New Worsley Wells Undeveloped Lands Complete Detailed Worsley Facility Continue Seismic Data Interpretation on Engineering and Design Southern
Slide 24: Attractive Valuation
ATTRACTIVE VALUATION First Helium Compares Well to its Trading Group Peers Market Capitalization $34.4 MM* Cash on hand Sproule Contingent Resource $2.6 MM Production tested 15-25 Report supports NPV10 base 1-30 Light Oil Discovery Well, First helium discovery well at value of $0.23 per share Month
Slide 25: First Helium Inc. - Net Asset Value Per Share
First Helium Inc.- Net Asset Value Per Share Estimate of Fully-Diluted Net Asset Value Per Share as at March 14, 2022 ASSETS $MM 15-25 Helium Discovery Well (Contingent Resource “Best Estimate” per Sproule NPV10) ¹ 15.2 1-30 Light Oil Discovery Well (Annualized Field Level CF of ~$8MM Capitalized @
Slide 26: Thank You
THANK YOU Contact us for more information on this investment opportunity! FIRST HELIUM INC. Suite. 550, 800 West Pender Street Vancouver B.C. V6C 2V6 Canada Email: ir@firsthelium.com Toll-Free: (833) HELIUM-1 (833-435-4861) Web: http://firsthelium.com Twitter: @firsthelium
Slide 27: Appendix
APPENDIX PIT Wes FIRST HELIUM pei 774
Slide 28: Peer Group Comparison
PEER GROUP COMPARISON PRE-PRODUCTION Imperial Global Blue Star Royal Avanti Desert COMPANIES Helium Helium Helium Helium Energy Mountain Ticker TSXV - HELI TSXV - IHC CSE - HECO ASX - BNL TSXV - RHC TSXV - AVN TSXV - DME Stock Price @01.12.22 $0.51 $0.18 $0.75 AUS$0.040 $0.365 $1.09 $2.25 Market Cap
Slide 29: Peer Group Comparison
PEER GROUP COMPARISON PRE-PRODUCTION Imperial Global Blue Star Royal Avanti Desert COMPANIES Helium Helium Helium Helium Energy Mountain Worsley - 79,000 SE Alberta - Land Position (Acres) 276,000 + 170,,000 60,541 1,535,000 189,449 >1,000,000 ~69,000 ~85,000+ Acres 3D Seismic Engaged Sproule Engage
Slide 30: Peer Group Comparison
PEER GROUP COMPARISON PRE-PRODUCTION Imperial Global Blue Star Royal Avanti Desert COMPANIES Helium Helium Helium Helium Energy Mountain 15-25 He Discovery 3 @ Steveville, 1 - Enterprise 4 Climax Wells 2 @ Greater Drilled Wells n/a 6 1-30 Oil Discovery AB 16#1 2 Ogema Wells Knappen, MT Tested: WNG 1
Slide 31: Risk Factors
RISK FACTORS Readers should carefully consider the risks and uncertainties described below and in First Helium’s Final Prospectus dated June 28, 2021, filed on First Helium’s SEDAR profile at www.sedar.com before deciding whether to invest in First Helium’s securities. These risk factors do not necess
Slide 32: Risk Factors
RISK FACTORS There is no assurance that further commercial quantities of natural gas or oil will be discovered or acquired by First Helium. Natural gas and oil exploration, development and production operations are subject to all the risks and hazards typically associated with such operations, inclu
Slide 33: Risk Factors
RISK FACTORS Reliance on key personnel The success of First Helium will depend in large measure on certain key personnel and management. The loss of the services of such key personnel could have a material adverse effect on First Helium. The competition for qualified personnel in the natural gas indu