Helium One Global (LSE:HE1) — Investor Presentation

0:01 Good afternoon and welcome to the HELIUM ONE GLOBAL LTD investor presentation. Throughout the quarter presentation, investors will be in listen only mode. Questions are encouraged and can be submitted anytime by the Q and A tab situated in the right corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question received in the meeting itself. However, the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to spend the following poll. I'd now like to hand you up to Lorna Blazer, CEO. Good afternoon.

0:30 Thank you. Welcome to everybody and thank you for joining today. This is an opportunity for myself, Lorna Blazer, CEO and Graham Jacobs, our Finance and Commercial Director to walk you through our most recent marketing presentation. It's also an opportunity for people to ask us ask the company questions. As already has been alluded to, we've had a high number submitted prior to this event. There And will be an opportunity at the end for further live Q and A. But look forward to taking you through this presentation ahead of our upcoming

1:07 extended well test at Itonville West, which is a very important and exciting phase for HELIUM ONE. So at this point, we'll on to we'll skip the disclaimer slide, a lot of words there. And I'll hand over to Graham to talk to this first slide. Thanks a lot, Anna. My thanks. Good morning, everybody, and thank you for joining. The main focus of the presentation today will be the extended roll test. Just some brief information ahead of that. As you're probably aware, we've just finished the fundraise. We've raised £8,000,000 stern,

1:43 which will see us through to the through to the extended world test that will take place over the next month or two. We now have 5,300,000,000 shares in issue, and our market cap at the moment is in the in the range of £7,000,000. So a very heavily traded stock. Yeah. Trade at hundreds of millions of shares on a on a daily basis. It's that makes it very, very liquid and very stable. But as I say, the main focus of this presentation will be on extended multist. And Norman will now take you through all of that to give you the background details and the operational aspects of what we're about to do. So I'm sure a number of you on this call are existing shareholders and very familiar with the story, but hopefully, we've got some new potential shareholders coming in and listening as well.

2:37 So this slide just captures a very high level overview as to where the company is currently at. Lease just under 3,000 square kilometers of prospecting licenses across Tanzania in three different basins, the Aasi, the Valengida, and the Rukhwa Rift Basin. The Rukhwa Rift Basin is our most advanced technically. The company commenced its first phase of of drilling operations there back in 2021, And the most recent drilling operations were completed in February this year, whereby we successfully flowed 4.7% concentration of helium to surface from our Itonbulla West one well. This was a huge inflection point for the company.

3:22 There is an established working helium system in in all three of these basins as active surface seeps. But to actually drill and bring helium to surface in the Rook Rook Rook Rook a huge advancement for the company. What sets Helium One apart from a number of other helium operators globally is that what what what we have here in in Tanzania is is geologically unique. It's it's what we refer to as a primary helium play or or project. And and by that, we mean there's no association with hydrocarbons or carbon associated gases. So it sits very much within that that pure helium concept. Helium does always require a carrier gas to move it along and a number of other projects globally that that would be nitrogen, methane, ethane, c o two, etcetera, even h two s in some cases.

4:16 What we have here is very much pure helium hydrogen mix and also with with some indications of hydrogen as well. Importantly, helium is incredibly valuable. It's over a 100 times more valuable than hydrocarbon gas with current contract pricing around $500 per per Mcf of helium. So if we move on to the next slide. Thanks, Tara. So again, I appreciate some of you will know this slide inside out and are very familiar with the helium sector. However, some people aren't and I think this always serves as a very good reminder and positive reminder as to why there is quite a lot of hype in the in the helium sector at the moment and why there are a number of new emerging players chasing after this very highly valuable gas.

5:13 It is a noble gas and by default being a noble gas, it has set of unique properties. And as a result, the gas cannot be substituted by any other gas nor can it be nor can it be made. It has the lowest point boiling point of of any known gas and subsequently is used as a coolant. One of the wide applications for that is in the medical sector for keeping the magnetic coils cool in MRI scanners. It also has very, very high a very high thermal conductivity. The application of that is transient in a huge growth sector at the moment, particularly in AI for faster performance of chips and also in the electronic sector for manufacturing of electric vehicles, semiconductors, fiber optics, etcetera.

6:04 And another key property is again being being a noble gas, its particle size is incredibly small. And as a consequence of that, it's widely used for leak detection and the main application of that would be in space exploration. So a number of space explorers cannot physically launch any rockets or spaceships without having a a supply of helium. It is in in huge demand as off the back of some of those sectors I've just mentioned, unlimited supply. It is naturally occurring deep within the earth's crust and collectively, we we are not exploring for enough to find enough of it to to fulfill the current global demand of helium. That compounded with a number of major helium producer producing countries being geopolitically constrained, Russia being the obvious one there, and constraints to supply coming out of the likes of Qatar and Algeria has heightened the the need for finding more helium and and as a result has has driven up the price.

7:14 There is no market price for helium. It is very much contract driven and and retails and in or trade, sorry, in in US dollars. I mentioned the contract pricing sitting at around $500 at the moment. There are spot prices that fetch much much higher and prices than that always potentially as high as $1,000 per Mcf of helium. So moving on to the next slide. In the Eaton Villa West one well in February this year, we successfully flowed helium to surface. For those of you who are familiar with the oil and gas sector, this is a large sort of breakthrough that you want to be able to secure when drilling exploration wells. It's great having shows down the hole and indications of gas on your logs, but ultimately flowing it to surface gives you that, you know, stepping stone launch into the next stage of appraisal and establishing what you potentially really have in the ground here.

8:16 So we, you know, flowed 4.7% concentration, which again is is a huge number to to a noteworthy number to draw attention to. The graph on the left hand side of this slide demonstrates where that 4.7 concentration sits relative to other global helium projects. And I want to just point out that the majority of those names to the right of this graph, to the right of the 4.7 that we have at Iturbolla in the lighter blue, majority of those are in production. So they are producing helium fields. And they are all established sorry, all associated with hydrocarbon gases or and or CO two.

9:03 There is an emerging helium sector. I think I think we're all very much aware of that. The names that you can see on the left hand side to the left of the the 4.7 at Iturmbilla are very much indicating some of those emerging planes coming through. Some of these are exploration wells. None of them are actually in production yet, but you can see that the concentration of helium is ticking up. And collectively, as a sector, we are, you know, learning more, understanding more about this elusive gas and chasing after plays and basins that are going to give us higher concentrations and therefore demonstrate far better commerciality. However, the the fields that are in production on the right hand side, you know, they are in production that you can see, you know, less than 1% concentration of helium.

9:53 So to be flowing 4.7% from an exploration well in Brookwa is a huge milestone for the company and puts us at this pivotal point in sort of hopefully transitioning into a company that can start to feed that decline in helium reserves globally. And just to reiterate that fact that, you know, we don't see hydrocarbons in these wells. Healing one have drilled three wells in the basin. AMACO drilled two wells in the eighties. They were exploring for hydrocarbons. Both of these wells were drilled were dry, sorry. And another operator has drilled two other helium helium wells in the basin as well also devoid of hydrocarbons. So seven wells with with no hydrocarbons in them and that really does set Helium ONE apart from from other major leading operators in the helium sector.

10:48 Onto the next slide, please. So those of you that have have been following us for a while will recognize that the company overcame some challenges last year in terms of trying to secure an appropriate oil and gas type drilling rig to fulfill their drilling commitments in Rookwa and also for the longer term for, you know, a project to be successful and moving us into the next phase of appraisal and development, we need to be in a position to move quickly on our wells. We overcame that challenge, which was attributed to by a decline in oil price, number of operators leaving the East Africa region and therefore, subsequently for a company outside proving very, very difficult and expensive to mobilize in a drilling rig internationally.

11:38 So we actually bought a rig. This is the rig set up at Itambula. As as we currently know it, it's currently hot stacked Itambula West one ready to commence the extended well test. It's a truck mounted rig. It's 950 horsepower. It's capable of drilling depths down to two and a half kilometers, not just oil and gas type wells, obviously, helium wells as well, geothermal wells, water wells, etcetera. So it has huge potential and scope for other projects. We would we're very much open to leasing that out. It generate a revenue option to us as well. But as a company, the priority remains to be, obviously, our project and monetizing this project as as soon as we can. But we have had several operators contact us from the South Region who who have shown an interest in in potentially using this rig.

12:31 It over the last few months since we completed the drilling on Itapilla West 1, it has been maintained by a small full time maintenance crew and it's remained rigged up and ready to go as soon as we received the last of our equipment at site to get going with the extended well test. So what have we drilled to date? So the next couple of slides just outline what we've drilled in the most recent drilling campaign. So we drilled the first well back in well, spud the first well in September last year. This was the type three well. So this was the type prospect that the company was chasing after back in 2021, which was initially drilled with a with a minerals rig that presented a whole a whole host of of challenges and and problems.

13:22 So we were very much looking forward to redrilling this prospect with a with a more robust radiator wider bore wider diameter borehole and subsequently being able to fulfill a complete set of logs and and data out of this well. That well encountered helium shows throughout the section. Notably, these shows increased with depth and in particular, when we drilled into the top of the basement, which we previously haven't been able to get to with the previous well and the smaller rig, We actually saw a big pickup in the in the helium shows and the frequency of those, which indicated to us that there was, you know, much better potential in this this deeper fractured basement play than than we had previously envisioned.

14:09 We also were we were able to recover the first downhole helium sample in Tanzania from this well and successfully obtained a downhole helium sample from that mid Karoo level. And had a purpose built, mobilized field PBT lab on-site so that we were able to carry out real time analysis of those downhole samples, which which proved to be hugely beneficial. Those samples have have subset of those samples have since gone to laboratories for analysis, not just from Thai, but also to Bola West that verifies that approach at site is sufficient enough to be validating and measuring correctly, which is which is always very, promising sign, particularly when it takes such a long time to export samples out of Tanzania to international laboratories.

15:00 So it gives us that real time sense check. Then the second well that we drilled, we moved about we moved the rig and all the equipment and supporting third party services about twenty twenty kilometers due east to completely separate prospect, which was the Etonbullah prospect. This had always ranked quite highly in HELIUM ONE's portfolio. It's targeting a similar structure to tie set up on a on a basement horse block, which you can see on on this geosizoid section here. We actually made the decision to move the well location off the back of the results of tie three at the last minute because we've seen those increases in in helium shows deep within intersection in the basement.

15:46 The first well we had planned on Iton Villa did although it was planned to go to basement, it wasn't planned to intersect the the faults. So we made the decision to move the well location last minute. We did the civils work so that we could specifically target the two faults that you can see in the shallow section of this of this slide, where we subsequently wanted to perform drill stem tests across those intervals. And that was a decision that ultimately, fortunately paid off. These these last minute decisions are not something companies and management teams and boards take lightly. But fortunately, in this scenario, it was the right decision and the Itchenbula West one well yielded some very encouraging results. Whilst drilling, we saw an increase in helium shows and frequency across the faults and also into that fractured basement play.

16:40 The red the red stars on this geoseismic section indicate where we then subsequently performed three independent drill stem tests across these intervals. And it was whilst performing the basement test that we we successfully flowed the 4.7% helium to surface as well as a as a nice 2.2% surprise with hydrogen. Geologically, not overly surprising. The the the two gases do tend to coexist in these geological environments sourced deep within the old quaternary rocks. Different processes, but but but a similar setting. And we'll certainly be monitoring helium sorry, the hydrogen as well as the helium when we perform the extended well test. The inset map on the bottom right is an indication of an outcrop of basement nearby that is clearly very highly fractured and it will be it's this fracture network that we will be intersecting for the extended well test. We'll actually be reentering the well that's that's currently cased and suspended, so relatively straightforward reentry.

17:47 We will then drill out the bottom of the shoe and deepen the well because we want to try and intersect more of these basement fractures because that is where the helium is being liberated from those deep seated hot fluids and migrating up the wellbore. So we'll be deepening the well first by about 100,150 meters before we'll get ready to perform the extended well test. Next slide, please. So what are we about to do next? What is this, you know, phase three drilling all about? Know, really, it's the company's opportunity to open up the wellbore for longer and execute an extended well test on Itambula. That is likely to take between four and six weeks from start to finish, including the deepening of the well.

18:36 In parallel to that, over the last few months, we've been working hard on bolstering the team. We have a comprehensive subsurface team now made up of a combination of reservoir engineer, development geologist, well test engineers, etcetera, who have been building

18:52 a very detailed complex for fraction model in the subsurface. This is now the play type that we are chasing at Isabella rather than a conventional very sort of more straightforward structural trap. So it's important that we get the modeling right. That modeling will be integrated with the results of the extended well test, so flavor flow rates, helium concentrations,

19:18 pressure, reservoir performance, data, etcetera, will be populated into a dynamic model so that we can start to determine what sort of resource numbers we we will get out of this very complex and potentially extensive fault fracture resource play. The results of all of that work, the subsurface work plus the EWT itself will be packaged up and submitted into a feasibility study so that we can submit a ML application to the government, which is a mining license,

19:50 which will enable us to move into that all important appraisal and development stage of of the project. And we're looking to do that very quickly and that's why we've we've we've built the team and we've been working this in parallel over recent recent months so we can move very quickly post EWT. So what is an EWT? So extended well test. This will be plugged in. It basically allows us to establish what flow rates will be commerciality of those flow rates, what the helium concentration will look like over a longer period of time. The drill stem test that we previously performed on the well was only open for a matter of hours and days. The extended well test enables us to open up the well for, you know, a period of days and weeks.

20:39 We'll be testing across two intervals, so the fractured basement as well as the Karoo. And each of those intervals will take approximately a week each to perform. Plus, we've got, you know, a bit of timing aside for the deepening of the well and and, you know, wrapping things up at the end. So that's why we're sort putting this four to six week window on. At the moment, we're mobilizing crew and equipment to site. Once that's completed, we'll be in a position to start these operations, but we're very much on track to commence them very, very soon. At site, we will be mobilizing

21:19 above ground equipment that will be plumbed into the wellhead. You can see on this slide is a cartoon graphic that represents what those processing trailers will look like at site. In each of those, there's a series of generators, compressors, separators, manifolds, etcetera. And ultimately, in that outcome event line, that's where we'll be recording all of the important performance data that will give us those commercial flow rates that we will then integrate into our our subsurface modeling. So once we've deepened so just stepping back from that, what's happening down the hole, we'll reenter the well, we'll we'll deepen into the basement by, like I said, a hundred, hundred fifty meters depending on the density of fractures that we intersect.

22:05 We will then run a seven inch slotted casing followed by a two and seven eighths completion, and then we'll test those two independent intervals in in the basement and Karoo. So very exciting phase ahead of us. We've had very promising indications from the DST and really very much looking forward to seeing what the EWT will deliver. I touched on the feasibility study. This slide just demonstrates all of the precursor work that's gone into that and how we're working extensively in country and in keeping the government informed of of the project and the developments there. The senior management team have have spent a lot of time rotating in and out of Tanzania recently going up to Tajoma where the mining commission and the Ministry of Minerals resides so that we can keep them very much informed of what the EWT will entail, the timing of that and how that will then fit into our subsequent ML application.

23:09 The feasibility piece that you can see in the middle section there and some extracts from from all of the great work that the subsurface team are are doing at the moment for those models. We'll formulate the basis of that application, As well as the feasibility study, we're also obligated to submit an issue certificate for the region that we'll we'll be developing. And that has to be completed over two weather windows, the wet and the dry season. So it was a minimum of six month requirement to conduct that work. So we actually started that back in March. And the teams are about to to go out to the field and and start the the second period of of field work, which is just a couple of weeks worth of work, and then and then they'll be reporting back on that. So, you know, then there is a lot of work that goes on behind the scenes here. It it isn't just a case of executing EWT and done that, you know, a lot of integration, a lot of science goes into it as well as supporting the environmental aspect as well.

24:12 So in terms of what does it mean for the sort of the medium term, medium to long term, with a successful EWT, we'll we'll be pushing ahead with that ML application, securing the the mining license, which then gives us the green light to start commissioning our production facilities.

24:31 Again, I mentioned about a lot of work going on in the background. We did engage with an end facilities engineering company several months ago who have already done the the blueprint design for us of this production facility and what it may look like. And, you know, once they they built that based on the results of the initial DST, that will be updated again with the results of the EWT and and the work that our subsurface team will be doing on the the subsurface modeling. But it is going to be a modular containerized production facility that we can build off-site outside of Tanzania and mobilizing once we have site of that mining license. The fact I keep laboring the point, but it very key across multiple levels. But the fact that we don't have hydrocarbons in the system does very much simplify this design.

25:24 It makes the whole process a lot easier. We will have to remove water and and we will need to separate the the helium from the nitrogen and hopefully a bit of hydrogen as well. But other than that, it's very straightforward process. The membrane separation piece separates out the gases. It's effectively a series of of sieves. And the pressure swing absorption, the PSA, is a very standardized helium processing application. And then ultimately, once we've got that that purified helium at the end, it will be compressed put into tube trailers and take and taking driven from source, from site. We are looking at ways of,

26:10 you know, smoothing the logistics and and bringing the cost down there, and we are entertaining in the options of of selling our source to to put the onus on on on the buyer rather than us for the logistics side. So again, you know, another indication of of a lot of a lot of work that's going on behind the scenes for us to to move forward with as soon as we can, which which brings me onto the the timing aspect. So we, you know, we're due to start the EWT imminently. As I said, we've got personnel, crews and equipment on their way as we speak. We will be executing the EWT in a period over a period of four to six weeks. Then we will integrate the final results of the EWT into our into our subsurface dynamic modeling, so we can look at the those reservoir simulation rates, gas water ratios, and and ultimately, the the volumetrics and the resource numbers that that will come out of that. Because this isn't a straightforward play, and this is another key point here. You know, this fault fracture plays is very complex.

27:20 It needs a lot of careful consideration and thought and work that goes goes into that. How the gas migrates in the fluids, how far reach and distances those fluids are coming from deep within in the earth's surface and therefore what those resource estimates will will look like in the longer term. So it's important we get it right and we do we do the sequence of work

27:42 in in the right order. And then once the feasibility study is completed along with the each certificate for the environmental work, we will then be in a position to submit that application to the government and and hope that that that application is awarded sooner rather than later. We are working towards first gas towards the end of twenty twenty five. Obviously, the sooner the ML is awarded, the sooner we can we can pull the trigger on on commissioning the production facility. Let's move on to the next slide, please, Tara. I think, know, like every project, it's the people that can make or break a project, just in your teams, but also your communities.

28:29 And the Rukwa Basin is in a very remote corner of Tanzania and where we work, we are surrounded by by very remote communities. And as a result of that, we are very thankful and grateful to them for their ongoing support to HELIUM ONE. There's been a lot of activity in their region. We've got a very good on the ground team. We keep them informed of what we're doing and what we're trying to achieve. And that is reflected in some of the good ESG work that we do our communities and I look forward to developing and continuing those relationships with them going forward. And then on the last slide, please, thanks Tara, and then we'll move on to the Q and As. I know that's an important part of this webinar. Just to summarize, you know, we are, as a company, very much at this key inflection point.

29:20 I think the company has come a long way over the last twelve months to purchase a rig, drilled two wells and successfully flow 4.7% concentration of helium to surface is a huge undertaking. I'm very proud of the team and proud of where the company has got to to this point. And really, this next phase to commence the and conduct the extended well test is going to give leverage to HE1 to take the company to its next level. We are unique. We are sitting in a geologically unique region. We don't have that association with the hydrocarbons. We can develop the project and monetize the project as quickly as we possibly can, given where we are governed by being where we are globally in a remote part of Africa, but we do have our own drilling rig.

30:12 So we can drill additional wells relatively relatively quickly. And we, you know, we have done a lot of precursor work that puts us in a very strong position to move this project forward to production as in in the in the quickest time that we we possibly can. So we're focusing on that that project monetization to benefit all all stakeholders And looking forward to sharing with you the results of that EWT and what those results mean for the next steps of the company.

30:50 Perfect. Lorna Graham, you very much for your presentation. What I'll do is I'll just bring your cameras up full screen for the Q and A. We have received a number of pre submitted questions, so I'll start with those. And obviously, the significant attendance on today's call, we may not be able to answer all the questions. But we'll start with the first question which reads as follows. There are a few other Helium companies names such as HEX and MOSMON which are promising not to dilute shareholding. What makes Helium ONE a better investment than these other companies?

31:20 Yes. Very good question. And, obviously, I'm sure you'd appreciate. I'm not in a position to to determine investment cases or where are those other companies. What I can state is that, you know, the company, we've we've brought 4.7% unit to surface, which is significant. We have a laid out plan in an EWT that will be taking place over the next few weeks, as Laura said. And and the other the other the other companies are probably I'm not gonna say definitely, but unlikely to be as unique as we are and as much as what we have as as Laura said is a is a pure healing play. There are no associated hydrocarbons. There is no c o two. There is no h two s. And so it's it's it is a pure play. It's a unique opportunity.

32:10 It is in a very remote location. The well site itself is about a four or five hour drive from the nearest paved road, so it does present its challenges. But it is it is an opportunity given the uniqueness of the project. Perfect. I think before sorry, Jake. Before we go on to the individual questions, I'm just in the interest of time, I think we were just gonna do a a high level summary upfront of the two key themes, and then we can continue with the questions if that's okay. No problem at all. There are quite a few to get through. So, certainly from my takeaways of seeing those pre submitted questions, and Graham and I have had a look, you know, there were understandably two key themes out of that. And I think that the first being around the fundraising, which I'll hand over to Graham shortly

32:57 to address, And the second being around the upcoming EWT. Hopefully, some of those have now been answered in the presentation, but I will just do a recap and a summary of that. But I think, first and foremost, I'll hand over to Graham and let's just try and wrap up some of those collective questions around the recent fundraise. Okay. Thanks, GLOBAL. A lot of questions have come in as we would expect about the fundraisers themselves and scale of dilution. Unfortunately,

33:25 whilst we represent this is quite distressing for for our our shareholder base, it is unfortunately pretty much outside of our control. Each time we go out to raise money is for a very, very specific purpose. We will be looking on to take an operation. Previously, it was the drilling of the two wells at Tie and This time around is for the extended world test. If we can't get to those numbers by going out to a retail base, it presents a very serious problem. And therefore, whilst we're aware that it does cause issues, it does cause problems, it does cause dilution. We are being dictated to by the people who will come in and will put those monies in. They also dictate the price.

34:11 We have no interest in in raising money in a quarter of penny as we did in December. We have no interest in raising money into half a piece we did a few weeks ago. We would rather keep the share price up. But unfortunately, as I said, there is very good opportunity to kick back against these these fundraisers and and dictate and determine the terms. As we move forward, as we develop, as we get results back over over EWT, then we're very confident that we'll be able to address these issues and we'll be able to essentially call the shots. But at the moment, given where we are, given that we're a relatively small company, given that we are purely exploration

34:51 focused, given that we don't have any of those revenue streams that we hope will accrue to us in the not too distant future, we are at the mercy of the people who will put in and will guarantee that we'll get to the amount of money that's required in order to move us forward. And I think the results of what we've done over the last twelve months speak for themselves. We moved from a previous well during the campaign, which was, should we say, less than successful to a situation now where having brought 4.7% of feed into surface, having acquired our own rig, we are in a very, very good position to move forward, get through these WT, and then be able to address the issues that clearly being raised by by our by our shareholders. What does that look like moving forward? Again, we're very cognizant of the fact that we want to keep any dilution to a minimum.

35:41 We are certainly hopeful that as we get the results of any EWT, we will be able to start looking at industry partners. We will start

35:49 addressing potential JV opportunities. And and obviously, underpinning all that is the fact that we will, some point in time, be looking at to finance this through through debt. It's a lot less dilutive. We will we will be required to make our own contributions of that. But that is something we would very much like to pursue. But we need solid results, and we need we need essentially an economic model that will that will come out of the the extended world test that we'll be taking over the next few weeks. So we are aware of the issues this causes. We are, as a board, painfully aware that it is to an extent unfair on the current retail base, but and and it is something that we will certainly look to address as soon as we possibly could.

36:37 Thanks, Graham. And then I think the other theme was around the extended well test and the and the upcoming operations, which hopefully some of the questions have been addressed in the presentation. But just to emphasize, know, the reason for doing today's webinar today despite being curtailed by the

36:55 football, the company, you know, we're just having to push on with that because it's very important to the company that we have this opportunity to present and offer that Q and A option ahead of commencing the EWT. So it is imminent. As I said, we are still mobilizing people and equipment, but we are very, very close now. That complete operation is is, as I also mentioned, likely to take between four between four and six weeks depending on what we encounter and what the results are, etcetera. We will be deepening the well. I think that's that's the key point. You know, we do want to give ourselves the best opportunity with flowing flowing the basement. And and by doing that, we want to be able to intersect more of these important basement fractures. So we'll be aiming to to deepen by about 100 to 250 meters.

37:45 We'll then run the seven inch slotted casing followed by the the two and seven eighths completion before getting ready with the production production logging tools and and commencing the test across those two intervals, both the basement and and the faulted crew section.

38:03 You know, there is a lot of questions around what's the commercial flow rate you're looking for. You know, this is why we're doing an EWT. You know, the DST gave some very, very encouraging results. However, the well was only open for a short period of time. In order to establish what those commercial rates are out of a unconventional play, you know, fault fracture play, as I mentioned, is not straightforward. We've also got a, you know, high percentage of gas in solution and there is in these complex fractured and faulted risk systems that that that's also, you know, that plumbs into a huge potential resource area. So we want to get these these numbers right. So we'll certainly be integrating the results of the EWT as soon as we can to give ourselves an internal resource estimate.

38:51 It's not just about the flow rates, obviously, it's also the helium concentration itself as well as reservoir reservoir performance, you know, how are these fractures and faults going to going to flow perform. I think I recall seeing one question around deviated wells and whether we're going be doing any stimulation. Great questions. At this stage, because the wells currently case, we will we won't be deviating at this stage. It will just be a straightforward vertical deepening. However, you know, in the longer term, as we move into development, and again, the fact that we have our own rig, these are scenarios that we are we are considering. Stimulation, again, not at this stage, not in this EWT, but again, depending on what the results yield, it may it may or may not be something we we will consider moving forward.

39:47 I did touch on the monitoring equipment. We'll obviously be monitoring real time for for the helium, but also because of those indications of hydrogen we have, we we also set up at site to be monitoring the hydrogen as well as well as any other key noble gases that that that may reside reside down there. So I think at that point, let's jump back to the individual questions, some of which we may be able to skip now we've addressed those two key themes, but let's push on and see how far we get, Perfect. Thank you very much, Lorna. Just we'll move straight to the second question and we'll start with that. Why did you feel the need to wait till the share price was at an all time low before raising twice? And also how do you propose to fund without further dilution to us long term shareholders?

40:34 Yes. It's actually cause and effect. The share price was at an all time low because we needed to fund. The market was aware of that. We had just come on the back of, and not to put too fine a point of it, operational problems with the the type three well. That was the first time we'd used a rig. There there were some issues with it. We previously raised money to drill a second well back to back with that because we could, because because we had the rig. And and unfortunately, because of the overruns that that accrued to that operational issues, we we the the market was aware. We are in a requirement as a linguistic company, as I'm sure you're aware, to issue updates on a regular basis. The market, and therefore, the world was aware that we were we were facing financial issues.

41:22 We had no choice whatsoever on those on those numbers. That again was the the the level at which a select group of investors were prepared to put the money into. In fact, that was that that itself was was was paid back to the bone. In in the final analysis and discussions and negotiations, we even had to remove the contingency from the the number that we actually raised. So it was a very difficult time. It was a very tricky time for the company. But we've I, you know, extremely pleased to say we did come through that. Lorna mentioned earlier the fact that the world location has changed for the Zumbula West world, which was a which was actually a huge decision that was made by the company because it was it did so in the in the face of a financial issue. Now the fact that we were down in resources and the fact that we need to go out, but still the company made that decision to change the wall pad.

42:10 750 meters or so, but the cost implications were actually quite material. Looking back now, clearly, it's it's it's money well spent. It was a very, very difficult and a very painful decision to have to make at the time, but we did so, as as they say, the results are history. So, yes, caused an effect. The market knew we needed money, but the share price was pushed down as a result of that, and it went down even further. We went to we went out capping hands to raise the money. Perfect. Thanks very much, Graham. Turning to the next question. Will the planned EWT also do a full flow test on the amount of hydrogen gas that's flowing out of the Entombula well to determine its commerciality? Address that one. We can skip that one, please. Perfect. The next question we'll go to then is, will Northstar downhole specialists be involved in the testing?

42:59 No. They won't. North Star did a great job for us in the DST. They are DST specialists rather than extended well test specialists. So that's why we've appointed SRB, formerly Schlumberger, to do the EWT and mobilizing mobilizing their equipment in in Africa to perform that. So that's a short answer to that one. Perfect. No problem at all. Another question we've got here, off topic, but the bulletin board suggests that football is the reason for the switch. Is that the case? Yes. I think that's that was probably obvious. It was not a decision made by us. It was out of our control. That was LSC took that decision. But as I mentioned at the outset, the company wanted to still have this opportunity this week to to engage with shareholders ahead of the commencement of our EWT.

43:45 So thank you to Investor Meet for turning that around and filling the gap. Yes. Thank you. Perfect. The next question here. Have any companies approached HELIUM ONE to form a joint venture or takeover? We certainly have no desire to be taken over. You know, we're very happy with running what must be noted as 100% of these licenses. We have no partners. We are very aware of the needs. Some of these questions have have have indicated the need for future financing, and we're hoping that, you know, we will be able do that independently. We are and have had discussions with various players. We are beginning to show up on the radar of many of the big industry players. But again, going full circle on all this, it's going to be dependent upon the results of the EWT and the actual plans we put in place to move the company forward. So we have we have had discussions. We we we maintain those links. It is important.

44:45 At the end of the day, we are relatively small company. We're aware of that, but we are sitting on what we hope is a vast resource, and we're we're very aware of the value that will accrue to that. So we're we're we're cognizant of the fact that we don't want to act too quickly with some of the big boys. We want to maintain our independence keep that moving forward until such time as we can dictate the pace of any change. Perfect. Thank you very much. Yeah. Just moving on. What's the cost involved in applying for a mining license? The the cost itself is minimal. The the it runs to just a few thousand few thousand dollars. The cost of putting together the application is that itself is quite substantial. As Lauren indicated before, we've we've recently increased our personnel quite quite substantially to deal with this application.

45:36 So we we do have subsurface teams in in place. We have reservoir engineers. We have everything else that's gonna work towards the final ML application itself and also all of the engineering and and economic reports that go with that. So that's where the cost is, that is being funded separately. We the you will note from the the recent fundraise that that was pure operational focused. We are we we did an opportunistic fundraising in February of this year, where we somebody approached us and we managed to agree a deal on raising money for the headroom that was allowed under the AGM that took place in December. So that is earmarked as as GLA, which will allow us to continue the planning, the processing, and everything else that goes alongside the application itself.

46:27 So the actual cost of the AML is is minimal. Perfect. The next question here, what would be the cost of the infrastructure needed in order to collect the lithium the helium? We've commenced we've commenced the the early engineering studies on that. There's a firm out of North America that we have been in discussions with now for several months. We're looking at the processing design and the capability of the of the plow that will eventually be required. It's been designed on the it's been designed on a modular basis so that it's scalable up as flow rates and the number of wells that will be required be determined. At this stage, it's very difficult to put an exact number on it, but headline the headline figures that we're we we currently have in house are somewhere in the region of $50,000,000.

47:16 That's not fixed. What we are discovering as we have early drafts of the designs and blueprints of these engineering studies is that the cost and the complexity is a lot less than we originally anticipated. The process of producing helium or pure helium once the extraction process is undertaken with water and other gases is is is considerably considerably simpler and less costly than we were originally hoping or or or expected it to be. So that is a that is a that is a real positive for for what the eventual eventual cost will be. And but also not forgetting the fact that as we do keep see keep keep saying, we do have our own rig. And the biggest part of any development is is often the the number of wells that need to be drilled. The cost to us on that will be again be relatively de minimis as our rig is ready to go.

48:11 Do you foresee the use of lateral drilling during field development? Yeah. I've already addressed that one. Do you foresee a joint venture arrangement? To an extent that's been addressed as well. We're we we we keep our eyes open. We keep our eyes open. We remain flexible. If the opportunity arose and it made economic sense, then we would consider it. At this more point in time, we are focused on maintaining our independence. Perfect. Will you be stimulating the present well? Again, address that one. No problem at all. Once you receive the pressure slash flow rates, what options will there be to monetize whatever the results end up being? Well, I guess on the back of that, that's when we actually start looking at the fulfilled development because we we know we keep coming back to this, but the extended oil test is gonna actually present to us what we had.

49:05 It will it will determine flow rates. It will determine the amount of hydrogen and helium that we will bring to surface. Anything if there's anything else that that goes with that. So that's what we'll have to work up before processing and the the the the subsequent development. As Lauren mentioned earlier in the presentation, we are hopeful that we actually start monetizing and have first gas cash flows before the end of next year. Perfect. The next question here. Will HELIUM ONE look to engage direct hire contractors for the future commissioning stages following a successful EWT or allow an expensive agency and third parties? Many projects attempt to cut costs in commissioning, rushing to production and inevitably fail resulting in expensive and time consuming complications. As a long term shareholder and as an experienced commissioning and completions manager, I'd love to a proactive approach to the commissioning and recruitment strategy.

49:57 So for that question. To answer it in in reverse, we're we're not gonna rush into commissioning. You know, clearly, we need we we we've got one shot at this. We wanna make sure we do it we do it right. We do it partnership with the with the government of Saint Denier and all the stakeholders. It's very important to us. It's very important to the country. It's not something that we rush through on a a a a week and a prayer. It needs to be thought out. It needs to be considered. Things like this, again, Laura mentioned earlier, the offtake arrangements are gonna be crucial at this stage because we do not we wanna keep this as simple as possible. We do not necessarily wanna be involved in transportation. We're not a logistics company. With regards to the other point, it is a fair it is a fair point. And, again, I'll just stress the fact we're a small company.

50:45 Essentially, what we do if we if we require people, we bring them on as a resource. That may sound fairly mercenary, but until such time as we have sight of revenue and a consistent revenue stream, we use we use and we will continue to use contractors. It's easier, it's quicker, and it's a lot less complicated than bringing on full time staff that we have to potentially get rid of when we are looking at the next stage of operations whilst we consider them. So it's in our thought process and it's a natural part of the cycle. Perfect. Thanks very much. But how much is the company intending to deepen the Intambula West one well? What information are you hoping to gather from this part of the operation? Yeah. So, again, I mentioned in the presentation that we'll we'll be looking to deepen by around approximately 100 to 150 meters depending on how many fractures we then intersect in in the basement.

51:38 And and that enables us to to get better information out of out of the fractured basement play essentially. So it's it's obtaining a a more complete dataset. Perfect. The next one here is not really a question, but just want the investor wants to thank Lorna and the team for arranging this in double quick time, if you had any comments on that. If not, I'll move on to the next question. We appreciate it. We appreciate it. Perfect. For how long will the flow test actually run and at what rate of flow do you hope to achieve in order for it to be considered commercial? Yeah. So again, I think I'd I'd I'd mentioned the timing aspect, you know, four to six weeks start to finish. It's it's very difficult to give an exact timing on it for obvious reasons, not not least just because of mobilizing mobilization of of people and equipment in the front end, but also the commencement of operations itself.

52:34 And and we no one knows how how long the world will will flow for, but we're working towards that in four to six window four to six week window. I think I mentioned in the presentation, we'll be testing two zones. So the faulted crew and the fractured basement, and each of those zones will be tested for approximately a week each. So, hopefully, that gives some context there. And then I've I've mentioned what what what data will will come out of the world and how we'll evaluate it internally. Perfect. Thank you very much. Turning to the next question. Thanks to Lorna and the team for your considerable grit, hard work, stamina, pragmatism and patience in surmounting the considerable obstacles to get HELIUM ONE to where it is today. As a long term investor who's endured six dilutions to their shareholding on the journey, would you please confirm if future dilutions are likely?

53:21 Or do you have alternative or can alternative funding be found to move the company through the proposed EWT licensing, building, production and hopefully income stages? Yes. I mean, to an extent, it has been answered. You know, we're very aware of the dilution effect and what it means to shareholders. We will we I used to keep any dilution to a minimum. We will be subject. We will be opportunistic, shall I say, in use of funds and anything that presents itself which is of maximum benefits of the company and the shareholders will be given to consideration. Perfect. Thank you very much, Graham. The next question here, have the management team had any unconfirmed interest in buying HELIUM ONE assets in the event of a successful extended flow test?

54:08 I think that sounds like a takeover type question again as well. So Address. Yes. Yeah. We'll we'll we'll move on from that one. Perfect. Roughly, how long does it take to receive a mining license in Tanzania? What are the complications, if any? Okay. That's that's a good question. So I mentioned in the presentation all of this sort of precursor work that is required to go into the application. We do have a good relationship with both the Ministry of Minerals and the Mining Commission. We are regularly in country to develop and strengthen that relationship. It is obviously a new sector for to Tanzania, which we're mindful of. They are very aware and up to date of our operational plans and developments. We certainly keep them informed as as as best we can.

54:58 From our in country compliance teams, we we do know historically that ML applications can take anywhere from a from a few weeks to to to around three three to four months. So we're certainly hopeful that we'll be within that, you know, within that three month window of of having that ML awarded, which would be which would be great to have that have sites on that before the end of the year. Perfect. I'm just sticking to Tanzania. We've had a question that asked, what is a day in the life of of a drill crew staff member in Tanzania? If you could share some insight, that'd be great. Sounds like somebody after a trip. Or a job. Or a job. Yes. I think incredibly rewarding. Obviously, I'm not a driller, but I have spent a lot of time on onshore rigs and and our rig rig in Tanzania.

55:46 It's it's it's hot physical, hard manual labor work, But at the same time, I think it's incredibly rewarding an exciting project. You know, this is this is a growing sector. It's it's different to oil and gas. Working in any remote crew requires resilience and an excellent teamwork, you know, and anyone who has spent time in rigs will know that, you know, you can't be there if you don't keep your emotions in check, you don't stay calm, you're not level headed, you need to think outside the box, be dynamic, problem solving, etcetera. And that, you know, that doesn't suit everybody, but, you know, we at HELIUM ONE do you spend a lot of time and put a lot of effort in finding the right people and developing the right teams.

56:32 You know, it's important to me that we we have the right team to do the job. And I've I've had the the pleasure of of working alongside our drill crews, both at Thai and Itambula West. The majority of them are also local. We we we have a a large local content plan in in Tanzania. You know, it's an offer of of upskilling and also local employment, not just in country, but also within the communities as well. We we train people up where we can. And, you know, they're very, very proud. They're very proud to be a part of this project. And that that certainly makes makes my job a lot easier to see happy and engaging workforce. Perfect. Thanks very much. The next question here, based on current data, what target share value do you put on the company?

57:27 Well, again, I'll I'll let you know after the EWT, it's it's not for us to certainly give any indications of where we think the target share price should be. We would leave that to to to to to analysts. In fact, there was there was a a research note that was prepared by Liberum a few months ago, March of this year. So we're taking this one step at a time. You know, clearly, we will be looking to build that economic model as as long as I said. And, eventually, we will be looking to bring in a third party to undertake what's called a CPR, competent person's report. That will then give evaluation, hopefully, of that particular part of the research. Let's not forget we have other other areas in our portfolio that we're keen to go and start exploring as well. We just never have the opportunity to do so thus far.

58:15 But but that that will come that will that that will come to the market in in due course. For now, again, it's just a question of focusing on EWT and getting some initial readings on those fund rates. Perfect. I might just turn to a few live questions that have come in. So we'll start with one here. Where does HELIUM ONE GLOBAL aim to position itself within the global helium market over the next five to ten years? Are there specific market segments or geographic regions that you're targeting for dominance? Obviously, at the moment, our focus is in Tanzania and that's where our reside. I think any small company is is always mindful of potential, you know, spreading that risk, diversifying, etcetera.

59:01 The helium sector is is is very topical at the moment and and growing. I think we're we're all mindful of that just by the the number of new companies that that have helium companies that have that have listed on AIM recently. I certainly would like to see HELIUM ONE becoming obviously the number one player in in Tanzania and being the first Helium company to to move into production and and have first gas. That would be a huge a huge milestone for us. I think we are always challenged by our geographical location compared to a number of the other players, particularly in in North America where, you know, logistics is is much more accessible. It's on their doorstep, etcetera.

59:52 But I think we've demonstrated as a company that we don't we don't let we don't that doesn't stop us or prohibit us from from from making good progress, and we'll continue to do that. And, you know, I I think with that slide I showed in the presentation is showing some of those the emerging growth sectors and and companies coming aboard and different concentrations being encountered is just emphasizing and highlighting where the helium sector as a whole is potentially moving to. You know, people aren't shy of entering new geological provinces to to chase this elusive gas, But I do know that HELIUM ONE does have something geologically unique here in here in Tanzania and would certainly be be focusing on prioritizing that first. But but as a company, we are and will remain opportunistic.

1:00:41 Now that's just evidenced by the fact that a, we bought a rig, b, last moment decision to move the well location of of this embola. So we're we're aware of other companies out there. We're aware of what they're doing. We keep tracks on them. And, obviously, at this point in time, it's a watching brief. Our focus is the EWT. Longer term, we will remain opportunistic. Perfect. The next question here, can the helium flow during the EWT be captured and sold? It'd be nice if it I'm sorry. Do you mean I think I think they mean at the time of the test possibly. Unfortunately, not. We we do need the the facilities to do that. I have I have told my director of operations if he could fill a helium balloon, then then that would be be a nice publicity stunt. But, yeah, it's unfortunately, it's not that straightforward.

1:01:35 But as you can tell, we we certainly looking to to produce and and monetize as quickly as possible and and and bring those facilities out to site as soon as we can. Yeah. There is there is just a big difference between measuring the flow rates and then processing it to the extent where it can be sold. Unfortunately, at this point in time, if we were to do that, then it would put a big number on the budget. So it's just it's just not feasible. Thank you very much. Turning to the next question. Can you say anything of your plans beyond Rukwa? Some of that was probably just covered on the previous question. If it's amongst our existing portfolio, Graham alluded to, you know, we do have ASI and Ballangida that we would like to start moving forward in terms of the work program.

1:02:25 We have been prioritizing Rukwa for obvious reasons. But we certainly, as a company, are, you know, mindful of of our other of our prospecting licenses in those regions that do need developing and we're certainly not overlooking that. Okay. Thanks very much. We've got a couple more questions. I'm Tanzanian. How does the ESI benefit local villagers near this project? Great question. Good to have some Tanzanians on board as well. So the Asia study is very much driven by or guided by the the activities we'll be doing in the longer term. So as we move into production, so it focuses on sort of the above ground footprint in in the region.

1:03:11 Some of the messaging that certainly my grandma and myself and our in country teams are demonstrating to the government at the moment is, although we sit under the mining commission, under the mining sector, the type of operations we do with a gas well is very, different to mining operations. And that's something that we try and portray from top down, from government level right down to local level as well in the communities. You know, we're not doing any open cut mining and stripping large sections of land. You know, we do just have a small well or a small facility on a drill pad. And so that is that obviously needs to be reflected in the Esha study itself. Back to your question, I think there's two sides to that. There's the EASHA piece and then there's the ESG piece.

1:03:59 Maybe I hope I heard it right, you were referring to the EASHA. But for us, in terms of communities and the direct impact there is solely driven or or solely focused from the ESGPs and what initiatives we undertake for each campaign to support and work alongside those those communities, which we'll continue to do. And then, I guess, the the issue work is separate to you, but that complements that. Perfect. And maybe time for one final question. Are those sites on the left of the graph shown have high concentrations involved in hydrocarbons? Sorry. I missed that. Can you repeat the question? No problem at all. Are those sites on the left of the graph shown that have higher concentrations involved in hydrocarbons? Obviously, I think it refers to a graph that you had up earlier on.

1:04:47 Oh, on the left. Yes. E either hydrocarbons or c o two. Yes. So all all all of them. They they all contain they all contain I I think as long as long as as said, what we have here is the majority of our carrier gases is nitrogen. All of those other producing fields or areas or wells or exploration activities contain hydrocarbons or CO2, H2S, or other noxious gases. Perfect. Well, I think I'd just like to thank you at this point. You've answered several questions from investors. And, of course, the company can review all the questions submitted today, and we'll publish those responses on the investor meet company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to you both, Lorna, could I just ask you for a few closing comments?

1:05:35 Sure. Thank you. Well, again, I just want to thank the audience for joining today, particularly with the last minute changes on the timing. I'm grateful to IMC for enabling us to go to take place today. And I look forward and hopefully that's given the shareholders and the audience a flavor of what's to come over the coming weeks with our extended well test. And I certainly look myself and Graham and the Board look forward to providing further updates over the next few weeks as we move into this really exciting phase for HELIUM ONE. So thank you. Perfect. And then on to Graham, just thank you once again for updating us today. Could I please ask investors not to close this session? I should now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. Behalf of the management team of the HELIUM ONE GLOBAL LTD, we'd like to thank you for attending today's presentation, and good afternoon to you all.

1:06:32 Thank you.