Blue Star Helium Limited · ASX:BNL
Blue Star Helium — Investor Presentation (September 2021)
35 slides from Blue Star Helium's investor presentation, September 2021
Slide 1: The Leading Helium Pure Play
THE LEADING HELIUM PURE PLAY Delivering high-grade, low-cost helium projects in the United States September 2021 ASX | BNL
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION The material in this presentation has been prepared by Blue Star Helium Limited (ACN 009 230 835)(“Company”). Prospective Resources Net Recoverable Helium (mmcf) 1U (P90) 2U (P50) 3U (P10) This presentation may not be reproduced, redistributed or passed on, direc
Slide 3: Blue Star: Leading Helium Pure Play
BLUE STAR: LEADING HELIUM PURE PLAY ▪ Helium: a critical technology enabler ▪ Strategic, large-scale US land position ▪ High grade, green resource ▪ Low cost, high-impact drilling program ▪ High-return commercialisation pathway
Slide 4: BNL Corporate Snapshot
BNL CORPORATE SNAPSHOT SHARE PRICE PERFORMANCE $0.07 CLEAN CAPITAL STRUCTURE $0.06 $0.05 ASX code BNL $0.04 $0.03 Share price (27 September 21) 6.3 ¢ $0.02 Issued share capital 1,257 M $0.01 Unlisted options (1.2¢ strike, expiry December 21) 63 M $0.00 Jul-20 Jul-21 Sep-19 Jun-20 Aug-20 Sep-20 Jan-2
Slide 5: Strong US Based Operations
KEY US PERSONNEL EXPERIENCED PARTNERS AND SUPPORT SERVICES ▪ Paul Jordan (US Subsidiary Director) ▪ Welborn Sullivan Meck & Tooley (lawyers) ▪ Sproule (technical & commercial) ▪ Kristen Stocks (Operations Manager) D.R. Griffin & Associates (engineers & land surveyors) STRONG ▪ ▪ Crockett Butler and
Slide 6: Strategic Helium Early-Mover
BLUE STAR STRATEGY SINCE 2018 ▪ Early-mover at start of helium up-cycle, emerging supply risks, and increasing demand ▪ Identified low cost, high-grade helium resources in premier U.S. location and market STRATEGIC ▪ Executed disciplined, cost-effective leasing operation to consolidate landholdings
Slide 7: Helium: A Critical Technology Enabler
HELIUM: A CRITICAL TECHNOLOGY ENABLER High value commodity with high-tech applications Rapid demand growth and emerging supply risks Listed as critical to economy and national security in US
Slide 8: Unique, Rare and Highly Valued
A unique set of physical and chemical properties ▪ Non-toxic, non-flammable, low-density gas ▪ Chemically and radiologically inert ▪ Ultra-cold boiling point (-269oC), stays liquid at absolute zero UNIQUE, ▪ High thermal conductivity RARE AND Finite, irreplaceable and rare on Earth HIGHLY ▪ Makes up
Slide 9: Helium Demand
Global share of helium applications HELIUM Cryogenics (incl. MRI) Lifting Electronics DEMAND Other Analytical Breathing Leak detection Pressure and purging Welding Optical fiber An enabler of innovation, helium is essential for key existing and future 9% 6% 11% technology development 6% 5% 2 Estimat
Slide 10: A High-Value Product with Blue Chip Consumers
A HIGH-VALUE PRODUCT – WITH BLUE CHIP CONSUMERS Current U.S. domestic prices of Helium (BLM) and Natural Gas (Henry Hub) MAJOR U.S. He CONSUMERS Helium +US$285 Natural gas US$5 per mcf per mcf Source: EIA, BLM 10
Slide 11: Strong Recent Price Momentum
STRONG RECENT PRICE MOMENTUM Growing consumer recognition of changing supply landscape $500 He price (US$/mcf) $400 BLM Price (Avg) Private Gaseous Helium (Avg) China* Taiwan* Tube Trailer $300 $200 $100 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 * Denotes CFR
Slide 12: The U.S. Helium Market
THE U.S. HELIUM MARKET LOOMING DOMESTIC SUPPLY CHALLENGES ▪ U.S. strategic reserve (BLM) progressively sold-off – minimal residual ▪ Most worldwide He supply is a by-product of hydrocarbon extraction; price inelastic plus climate targets expected to significantly impact on new supply The U.S. compri
Slide 13: Major Global Helium Supply Sources
MAJOR GLOBAL HELIUM SUPPLY SOURCES Most helium production is a by-product output of hydrocarbon extraction He output He concentration Asset Owner Domicile Notes (Bcf p.a.) (% He in raw gas) Ras Laffan RasGas Qatar 2.0 0.2% Primarily LNG output La Barge Exxon U.S. 1.5 0.7% Primarily CO2 output Algeri
Slide 14: Building the Future with Helium
BUILDING THE FUTURE With helium ▪ Helium is a modern technology enabler ▪ Not a greenhouse gas and not an energy source ▪ Helium plays a key part in renewable energy and the technology required for a low-carbon economy: – Essential in nuclear fusion and ideal for nuclear fission cooling – High speed
Slide 15: Strategic, First-Mover in Las Animas
STRATEGIC, FIRST- MOVER IN LAS ANIMAS US domiciled, world’s biggest helium market Excellent proximity to key infrastructure and major consumers High-grade, green helium resource
Slide 16: Blue Star's Flagship Helium Projects
BLUE STAR’S FLAGSHIP HELIUM PROJECTS Strategic first mover in Las Animas, Colorado 1 Strategic, large scale land position 2 Proven helium play fairway 3 High helium concentration 4 Substantial shallow resources and deeper play concepts Las Animas County Project Area 16
Slide 17: Strategic, Large-Scale Land Position
1 STRATEGIC, LARGE-SCALE LAND POSITION Extensive landholding in premier U.S. helium location FIRST MOVER IN LAS ANIMAS COUNTY, COLORADO ▪ Dominant land position secured ▪ Circa 265,265 gross (189,449 net) acres leased 8.8% He ▪ Largest lease holder in the play/county 8% He ▪ Historical production at
Slide 18: Proven Helium Play Fairway
2 PROVEN HELIUM PLAY FAIRWAY Established across Blue Star’s land position PROVEN ANALOGUE ▪ Historic production at Model Dome – 8% helium concentration – 500 - 1,000 mcf/d raw gas vertical well IP rate – Proves working helium system 8.8% He SOIL GAS SAMPLING AND PETROPHYSICAL ANALYSIS CONFIRMS 8% He
Slide 19: High-Grade Helium
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 3 Model Dome (US) 8% Tocito Dome (US) 7% Tacitus Holbrook Basin (US) 6% Desert Mountain Dineh Bi Keyah (US) 5% Nasco AG Concho Dome (US) 4% Petrosun Ladder Creek (US) 3% Tumbleweed Midstream HIGH-GRADE HELIUM Globally attractive helium concentration levels Strategic Res
Slide 20: Substantial Shallow Resources & Deeper Plays
4 SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS Across large land position and significant prospect portfolio 13.4 BCF PROSPECTIVE HELIUM RESOURCES Net Recoverable Helium (mmcf) 1U (P90) 2U (P50) 3U (P10) Galactica Prospect 2,131 4,395 6,849 ▪ Lyons Helium Play Prospects Pegasus Prospect 1,970 3,423
Slide 21: Substantial Shallow Resources & Deeper Plays Potential
4 SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS POTENTIAL 21
Slide 22: Substantial Shallow Resources & Deeper Plays
4 SUBSTANTIAL SHALLOW RESOURCES & DEEPER PLAYS 22
Slide 23: Accelerating the Portfolio
ACCELERATING THE PORTFOLIO Maiden drilling campaign High return, commercialisation pathway
Slide 24: Aggressive Drilling Strategy Set to Commence
AGGRESSIVE DRILLING STRATEGY SET TO COMMENCE First helium well planned for Q4 2021 Water Well Program ▪ Blue Star to fund the drilling of water wells* for local ranch holders as part of its environmental, social and governance initiatives ▪ Mudlogging, wellsite geology, continuous mass spectrometry
Slide 25: High-Return Commercialisation Pathway
HIGH-RETURN COMMERCIALISATION PATHWAY Scalable, modular growth concept to market x 5 Wells x 1 Modular Facility (2.5mmcf/d) Plant gate sales to off-takers OUTPUT 50mmcf/yr 2.5mmcf/d He product gas (+98% He) To liquification raw gas capacity Helium He plant or end user (various nearby) Estimated US$1
Slide 26: Moving Rapidly to First Helium
MOVING RAPIDLY TO FIRST HELIUM Accelerated evaluation and commercialisation timetable Q4 2021 ▪ Enterprise 16#1 drill permit approved Q2 2022 ▪ Enterprise 16#1 well drilled ▪ Wells #4 - 8 drilled ▪ Permits for wells #6 - 10 initiated ▪ Defined commercialisation route ▪ Water well drilling ▪ Shortlis
Slide 27: The Leading Helium Pure Play
THE LEADING HELIUM PURE PLAY Premier quality development asset opportunity Desert Mountain Helium One Grand Gulf Company Blue Star Helium Renergen Avanti Energy Royal Helium Imperial Helium Energy Global Energy JSE: REN; ASX: Listing ASX: BNL TSXV: DME AIM: HE1 TSXV: AVN TSXV: RHC TSXV: IHC ASX: GGE
Slide 28: Blue Star: The Leading Helium Pure Play
BLUE STAR: THE LEADING HELIUM PURE PLAY ▪ Helium: a Critical technology enabler ▪ Strategic, large-scale US land position ▪ High grade, green resource ▪ Low cost, high-impact drilling program ▪ High-return commercialisation pathway
Slide 29: Appendix
BLUE STAR HELIUM
Slide 30: Marketing Blue Star Helium
MARKETING BLUE STAR HELIUM Right in the centre of the world’s biggest helium market TARGETING PREMIUM SUPPLIER STATUS ▪ Helium marketing study – completed ▪ Within trucking distance to established liquefaction plants with significant available capacity ▪ Targeting production of highly sought after a
Slide 31: Blue Star: A Local Partner and Supplier of Choice
BLUE STAR: A LOCAL PARTNER AND SUPPLIER OF CHOICE A highly engaged, holistic stakeholder approach, STRONG ESG CREDENTIALS ▪ Green helium - natural gas composition advantages ▪ High relative helium and nitrogen composition ▪ Effectively zero hydrocarbon (methane) content – Avoids highly impactful ass
Slide 32: Current Helium Uses
2 He CURRENT HELIUM USES 4.002602 Helium Aerospace/aircraft Healthcare Electronics/semiconductors Space flight Heliox breathing mixtures Fibre optics Helium in breathing mixtures assists with breathing Used in the manufacturing process and for cooling systems during NASA (and private space organisat
Slide 33: Rich Helium Accumulations Are Rare?
RICH HELIUM ACCUMULATIONS ARE RARE? ▪ Helium (He) is produced by the decay of uranium and thorium in granitoid basement rocks and derived sediments over significant time ▪ The He then moves upward through the sedimentary section until it is trapped under effective sealing units, usually including an
Slide 34: Glossary and Units
GLOSSARY AND UNITS Term Description 1U (P90), 2U (P50) and 3U In a probabilistic resource distribution, 1U (P90), 2U (P50), 3U (P10) estimates represent the 90% probability, 50% probability and 10% probability respectively that the (P10) quantity recovered will equal or exceed the estimate assuming
Slide 35: Data Sources
DATA SOURCES Slide Description Source Currency conversion rates: CADUSD 0.79; AUDUSD 0.73 (28 September 2021) Desert Mountain Energy - Investor Presentation, 16 September 2021 Renergen Ltd - Prospective Resource Evaluation, July 2020; Annual Report to Shareholders, 1 July 2021 Helium One – Investor
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