Helix Exploration (LSE:HEX) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen, and welcome to the HELIX EXPLORATION PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your question at any time and press send. Due to the significant attendance on today's call, the company may not be in a position to answer every question received during the meeting itself. However, the company can review your questions submitted to them. We'll publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure that the company would be most grateful for your participation. I'd now like to hand over to David Mitchen, chairman. Good afternoon. Hi, everybody. First of all, thank you very much for attending. I've heard there's quite a few people on the on the on the line, which is good.

0:47 What we thought is we thought this would be an opportune moment as we are preparing to reenter, CLINC one well, which was drilled very successfully in in in August. We're we're looking to reenter that mobilizing rig next next week before this would be an opportune time to sort of bring our investor base together and just explain what what what we've seen in ClincOne and why we are so excited to be getting back into it. So without further ado, for people who have not seen Helix before, a quick update on who Helix are and what we've done. We are a a helium company, looking for helium in North America.

1:34 We IPO ed in April 2024, so we're still, you know, only about six months old. It was a significantly oversubscribed I I IPO. It was an offering book of 22,500,000, of which we took down $6.06 7.5. So it was to protect the the dilution while still making sure that we had enough cash on hand to complete all of our operations successfully. We had a so we raised about $10,000,000 at Translators. We quickly moved to, to contract, mobile engineers, etcetera, for for the for with a combined budgets to two wells of $4,100,000.

2:20 The two wells will be on Ingramar, which we've already commenced on Clink 1. That's gotten as a large scale project stacked reservoir with known gas, about 2,300,000,000 cubic feet, p 50 helium resource with an upside of over 6,000,000,000 cubic feet. That's got a NPV eight of just over 300,000,000, based on an initial CapEx of 19,600,000 and free cash flow after royalties, after after tax, after OpEx of over $600,000,000 over twenty year life of mine. So that's a very that's a sort of that that's a company making project. That's why we've gone there to drill fast. The other project we have in our portfolio is Ruddyard.

3:07 This is smaller. It's about point six in BCF, but it's a proven helium disc discovery. So we're able to go straight straight into appraisal. And even a point six of the BCF, you're looking at over $250,000,000 of in situ value, all of which points towards a pair of highly economic projects, which we are drilling both of them before the end of this year and targeting two discoveries before the end of twenty twenty four to bring into production before the end of twenty twenty five, a fast moving management team. Important as well to remember why we drilled CLINC one, why why we went into into it, and why why and and what we have achieved so so far.

3:54 So, we we drilled CLINC one to test the stacked reservoir targets in the Amazon Charles flathead form form formations and the fractured pre pre Cambium basement place. Why we went into those target targets is because historic, drilling had had identified known gas on all of those, on on on all of those targets. They've been tested with with with the the Charles and the Hamilton have been test tested and shown to be high in nitrogen, but the system had never been tested for helium. With what we've achieved so so far, we have well, one, we've confirmed the suitability and the operational readiness of the rig and the crew. That's really important. Small a small team. We need to make sure the exploration dollars are being spent in a cost effective way, and the regular team have worked really, really well.

4:48 We've also been able to identify helium, not not just in in the arms and of Charles, but all of our all of our target horizons with the exception of the Precambrian that we should not reach yet. That's really important because we're we're able to say for the first time that this is not just a known gas system. It's a known helium gas system. We also test for the potential of hydrogen with helium, which was something that Bo had identified early on as being a a potential, economic interest and a potential benefit to HELIX. I was very pleased. We are both very pleased to see that that that there because that could be a game changer for the company. What we've not been able to to do yet is to wireline, to identify prosty gas effect to understand the thickness of of the reservoirs.

5:40 We've not been able to sample gas and confirm grade. We've not been able to flow test in a place. All of those are things which we want to to complete on reentry, so we're able to turn what's a set of very encouraging exploration results into, into a strategic disc discovery and a company making discovery. So point one was we've demonstrated the rig and crew worked well. I'm pleased to be able to, to to show you the time depth curve. You can see the black dot dotted line there. That was the the the the pre drilling time depth curve as planned by our petroleum engineers, petroleum consultants.

6:26 The red line is the actual curve that we achieved, while drilling. You can see it matches incredibly well. This was a very capable rig and a very capable crew, with no accidents, no incidents, spills, or lost time. It's actually only a very unusual set set set of circumstances, which has prevented us from completing the perfect well. And I mean, the perfect well in terms of not just the operation, but also what we've found. We would certainly be working with treasury trading again when we move to Rijad at the end of October. Before I go into the results, I'm gonna give a quick technical recap on, what a helium system and hydrogen system are.

7:13 This is unapologetically, technical. If you didn't want a very detailed technical presentation, don't ask a geologist to give the presentation. I'm not a chairman. I'm a guy who drills for poles. And drilling is itself a technical thing. And if you, you know, you there there is a set of results that have come out of this which need to be understood. So the first, thing is to talk about the helium cyst system. Now we I've spoken about the helium system in the past. This was the source for helium is ancient con continental crust with alpha particle emitters, uranium, thorium, emitting alpha particles. Alpha particles basically acquire extra electrons in in the crust and become helium atoms.

8:04 We refer to them as molecules in exploration, but they are just atoms. These then are trapped in the crystal lattice of the ancient crust until there is a tectonic event or some sort of thermal shock which allows them to be liberated. They can then migrate along major crustal structures such as a smart thrust until they find suitable traps and reservoirs with seals which are able to contain them in economic levels. Now for a helium cyst system, the key components of of the reservoir is the thickness, velocity, and the permeability. That translates directly into volume and flow rates, which translates directly into economics.

8:55 Where we are at click one at the moment with the much with the much gas shows we have doesn't tell us anything about the thickness, velocity, or the permeability. So we don't know the economics. What it does tell us about is that we have a helium system. Previously, in England, there was a known nitrogen rich gas system, which had floated the Amiston, which had gas tested in the in the in the Charles and where there was a wire line gas effect in the in the flat head along the down dip. The the presence of helium in this gas show shows for the first time we can confirm that this is a helium gas system. Importantly, what a gas show doesn't tell us is what the grade of that system is or what the economics of that system might be.

9:46 A gas show okay. Let me explain what a gas how a gas show works. On the schematic on the right hand side, there's a drill which is entered into a helium rich reservoir. Though the way that the drill works is it pumps mud down the middle of the well up down down the middle through of the of the pipe, but goes around the end of the of the bit and up the outside. Now when you get a gas show, what that means is that the the bit which is breaking the rock has liberated gas out of that rock, and that gas has gotten into the mud and that mud surface has been tested. However, the amount of gas that goes into the well into the into the mud depends very much on the rate of penetration.

10:40 Depends on the size of it, both of which go into the volume of rock, which will be broken. It depends on the on of the mud. It depends on the on the the on the rated mud flow, how much much you're you're actually pumping around your system. And finally, it depends on the porosity and the and the and the grade. Unfortunately, with so many variables, you can't calculate out the porosity and the grade from gas in the mud. What you can, however, do is get a very strong indication as to if you have got helium in the system or or not. So on this next page, you can see the helium mud shows continuous measuring as we drill a well from one one thousand foot down to 8,030 foot.

11:31 Samples would take gas was measured by practically every second. We've averaged about to every foot, and each dot there represents the gas show in that foot. I'd like to point out the x scale is a logarithmic scale. So what you see at 10 parts per minute, what what you see I'm going to do some due to pen because of that technology. What you see at 10 PPM is 100 times more than a 100 is a 100 time 10 times more than a thousand. So there's a logarithmic scale here. Now the blue vertical line here, this is your background levels.

12:19 So that is the baseline which we measure from. There's a lot of noise being there and about 10 parts per million. So you could probably do another line of sort of a 10 PPM level and say, yeah, you know, that that's anything left about isn't particularly significant because you're only talking about, you know, two times over base level. What is significant, however, is when you get into the Amherstad here and when you get into the Charles here. Both of these very big hits. We're talking about as well as over 200 parts per million in the arms and over 600 parts per million in in mid in the Charles. That's a good level to be asked. You know, that that's such a we're we're hoping that that implies a nice reservoir.

13:13 It's nice that those gas shows are matching it with with where we've logged, good good quality reservoir materials in the in the in the mud cuttings. It's all looking that tells that's also where gas have been identified in historically. So it's all pointing towards nice gas rich cyst system. Moving down, not a lot going on between the Charles and the top of the Cambrian. The top of the Cambrian, you sort of get this continuing increase here. So in the announcement, we mentioned how there was continuous gas shows all the way throughout in the Cambrian, and then it jumps up quite nicely into into the flathead. So good gush shows all the for Abercrombie and jumping up quite nicely into into the flat flathead.

14:01 Bear in mind, this is a logarithmic scale. That is quite a significant show. It's over ten ten times over base over over background. So we've got, we've got gas shows on all of our primary targets in the Amiston, the Charles, and the Flathead. We have not been able to test our tertiary target, which was the Precambrian as that was not reached. Now I'm gonna go on to talk about hydrogen. Hydrogen was something which Bo, anticipated in as well. I was perhaps a bit more skeptical, more for me, because Bo certainly is the expert on this belt having spent twenty five years there. So hydrogen is very much an interesting commodity to be in at at the moment.

14:55 I would encourage all of you to be googling, about high hydrogen, about, the investments for some big, big, big names such as Bill Gates, Jeff Bezos, and are making in hydrogen. It's very much seen as one of the future fuels because of its wide range of applications applications in things where lithium batteries can't be used, and because of the and because, you know, pure hydrogen doesn't have any any greenhouse gas emissions. The hydrogen market is worth about a $100,000,000,000 a a a year, significantly more than the $6,000,000,000 a year, which the helium mark mark mark is is worth.

15:42 And there's various shades of hydrogen. There's a you know, the the gray hydrogen, the blue hydrogen, the green hydrogen hydrogen. What we're looking at is geological hydrogen. That's high hydrogen which is being sourced from the from the earth and trapped in, commercial quantities, in reservoirs. This has potential to be the cheapest form of hydrogen, and certainly the cheapest form of green hydrogen because there would be no CO two emissions associated with with the with the extraction and the winning of these of this type of geological hydrogen. So hydrogen is formed, through the serpentanization of mafic and ultramafic rocks between two hundred and three hundred and fifteen degrees c. Basically, you get your iron rich olivines, your ferrites, and you you combine them with water and then reducing in the environment, and that releases the hydrogen to go on. Tell you what. Excuse me.

16:49 I'm a look at this. I I've got a lump of serpentinite in my in my office. This is from I'll wet it so it stands out a bit. This is from, actually, from the in Oman. You can see it's this nice sort of lustrous green rock. You can see the sort of the alteration halos around the the veins and joints here. So we sorry. I went to a complete tangent. Where where where was I? Anyway, that releases hydro hydrogen. It migrates along crustal structures. It it needs a nice nonreactive reservoir. If it goes into limestone reservoirs, it can be consumed, by carbon or or or the limestone to produce a a abiotic methane. It sort of eats the limestone to produce a input to produce a a water soluble form.

17:58 Why Beau saw that there was potential for hydrogen in area? He understood that the Wyoming cut on, which is a sort of it's it's a it's it's an archaean melange with all type of rocks types in in in in there. But it is known to be rich in ultramafic rocks, and ultramafic rocks are, the source for high for hydrogen. So although helium and hydrogen have got very different sources, helium being sourced basically through, decay of radioactive isotopes over a long period of time and high hydrogen through at medium temperatures, there was potential for hydrogen to be generated. And indeed, there were other wells, which Bo was aware of, where hydrogen had been found in in in in the past, on on the same belt.

18:51 And so, basically, the the the the Sumatra thrust is acting as as the as the vector. It allows the water down into the into the automatrix in in the serpentanization window, which then releases hydrogen back up to the thrust, where it's able to migrate into reservoirs, and you get a very good nonreactive reservoir in the flat head form form formation, which is a pure quartzite, which has got the potential to trap and store economic hydrogen if it's there to be found. So moving on to what we see in clinic one, this is not full. Well, I focused on the bottom from 6,000 to 8,000.

19:39 That's because the Charles form formation is the limestone, so we'll have consumed any hydrogen which moved into into the upper reservoirs. I'd also like to point out that the x axis on this scale is in percentage, not in parts per million as the helium one was. It was it it this is this is actual percentage of hydrogen in the in the in the mud. This is a, scale and grade of of mud shows, which is very unusual. Normally, these things would be measured in parts per million or percentage of percentage. To see gas shows in mud of this tenure is very encouraging. You know, gas shows are diluted by their nature.

20:28 So the grade in the ground would normally be higher than the grade that's in the mud. There's a few very positive things about this. So, you know, this this repeated little hydrogen shows on the way down through the Cambrian that might be related to sort of little stringy bits of porosity in, you know, a few thin sandstone stringers in about in terms of shale and silt. So when we get down into the flathead that we see the the consistent take off in grade in mud shows, and we also see it continuing to increase with depth, which is really interesting. Another very interesting thing is that the flathead, was so the flathead, which is our primary target, that was probably noticed to be between twenty five and forty five foot thick based on, the results from Treasure eighteen and one, which is drilled about six and a half miles away, and down dip.

21:28 At a point where we stopped the well, we were had already drilled a 140 foot flathead. Grade was continuing to increase with depth, and the TD was called while we were still receiving quite strong high hydrogen effect and still in flathead. So that all looks quite encouraging for a hydrogen system at at depth. What we need to do is test it. So, the rig that we've secured is, the precision drilling rig 704. It's an RA Hutchinson m t 609Dash 9Point5Dash 400 G, which doesn't mean a lot to me, but I do know that it's a telescopic double, which is a much bigger rig than we previously had.

22:20 It's rated to go to 15,000 foot. We don't know how deep the Precambrian might be or even if we can deepen the well, but we're sure this will be able to to get us into the Precambrian as required. Importantly, the max hook hook load is that's significantly above what the what what the treasure stage rig was. When you're getting things into a well, it's never how much you can you you never have to push anything. Things slide down or they don't. But it's pulling them out again is after the limiting factor you wanna make, and you don't wanna make anything a one way trip. Basically, this rig has got all of the requirements that we need to give us the best possible advantage of of a successful reentry.

23:11 No reentry is with without risk. But this these diagrams here show, I think, show quite nicely, what we're looking at and what problems have have been. So this is actually to scale vertically. The surface of the ground is, an ex again, excuse for quality of the sketches. I did them myself. Surface of the ground surface is here. This little triangle here is meant to be a drill rig. You can see surface casing down to 750 feet, and then we will open hole to TD. The Mowry Shale was the unit that caused us problems, but starting from about 2,100 feet. You know, it's very unusual set set of circumstances to see the Maui shale collapse. It's not previously known to be collapsing in this area.

24:05 In fact, this would be the first this is the first instance that we know about in this this vicinity where the where sort of mud polymers, which are designed for holding back shales. It's the first instance where these mud mud mud mud polymers have failed. So we're gonna come back in with a KCL mud mud mix, which should be much better at holding back the the shales. And, also, we're going to use pressured mud drilling. So we're able to control the pressure on the annulus, which will assist in maintaining a stable pressure environment as as we make connections when we're running encasings, and all of that should help to make sure that that reduces the sloughing on the Bowery Shale as we're as we're going through it.

24:53 Also with this, maybe it's able to rotate and sort of be a bit agricultural with a seven inch casing string, which should also help to hopefully get us out of trouble, if it's hanging on ledges or if it is beginning to pack off. After we've done that, the next job will be to, to run a wiper trip, to check the condition of the hole. If that bit gets down to TD, with no issues, we would then need to make a decision about if we deepened the well or not. Now that's gonna be a decision which is made on the site and on that time. You know, we there's there's no guarantee that this will be a successful reentry. There's no guarantee that if we do successfully reenter that we find the remainder of the hole in in good condition.

25:42 We're optimistic that we will and that we can, but we're not gonna jeopardize what we've already seen with deepening the well if the most sensible thing to do would be to get that well behind casing and to secure a a sample of what we've already seen. So that's a decision to be made at that time. I'm optimistic that we can deepen it. My god. Fingers crossed and toes crossed and touching wood every day. If we if if we get to the bottom, we'll run a wire line that will target all of reservoirs. That will give us any that gives us a lot more geologic data, a much greater understanding of what's happening at depth, and also allow us to to properly target reservoirs where we're seeing gas effect in wire lines as well as from the muds.

26:37 Before that works, the last thing we do, we'd be to run-in a four and a half inch casing to all all all the way to TD, whether that's the existing TD or deeper TD, and to cement that and then to perforate and conduct the the flow tests. The first gas to surface can be sent for analysis, and that would get us for helium grades and the hydrogen grades where appropriate, which will allow us to go into detailed engineering on our on our plant. And then over the next sort of four or five weeks, we would flow testing each of our target horizons, which will allow us to really understand the depletion curves and form a you know, create a proper field development plan with operating and operating costs and capital costs and completed full feasibility study with a target to secure construction finance and bring everything into production by the end of twenty twenty five.

27:42 The next few weeks of October are vital. That's more or less it. We're opening up for questions. I just want to draw your attention to the image on the right. I included it on the last slide because I quite like it. You can see the rig there, which you think is quite a big operation. When you zoom out to space, you can see the scale of the closure that we're looking at. Yeah. Ingomar Dome is not a small dome. It spans over 16 and a half thousand acres. It's got potential to as a structure, it's got potential to produce a strategic sized traps in helium and now also maybe in in hydrogen. Yeah. This is this is what we go into exploration for.

28:31 This is the well we do this is the well that we that we want to drill. Yeah. This is showing all the good signs, and we're really excited. We're excited to be getting back back into it, and we're looking forward to sharing those results with you over the next few weeks. That's great. Thank you very much indeed. That's great, David. Thank you very much indeed. Later, Darren. Please do continue to submit your questions just using the Q and A tab situated on the right hand corner of your screen. That's why Bo and David take a few moments to review your questions submitted already. I'd just like to remind you that recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your Investor Meet company dashboard. David, Beau, you received a number of questions ahead of today's event along with a number of questions throughout your presentation. Thank you firstly to everybody for your engagement.

29:19 If I may, Emily, just hand back to you to moderate through that Q and A, and I'll pick up from you in the end. Yes, absolutely. So just starting with the first question, which is pre submitted. What are the additional costs for the following up drill on CLINC one, and what is the overall cash position looking like today? Okay. But I'll take this first one. You've been quiet for half an hour, but I'll give you a chance on the next one. So, yeah, additional costs for this, look to be between 500,000 and maybe three quarters of million dollars, for the rig and the testing and or everything that we're doing. Bear in mind, in April, we raised $10,000,000.

30:05 The AFE to drill both Ingrammar and Ruddyard is just over 4. So we're in a very strong cash position still. We remain very strong, very well funded out over the next twelve, eighteen months. So, yeah, we're in a we're we're we're fully funded for all of our planned exploration activities. Great. The next question is, are you able to give a guide based on the figures given in the mud logs as to how much larger the shows of helium and hydrogen could be? So the it's a good question. The the mud log itself, measures percentages of percentages.

30:54 It is the is the gas coming out of the rock and up the the annulus of the wellbore and then is measured with the mass spectrometer. So you cannot quantify what the actual percentage of hydrogen or helium is in the gas. However, what comes out of the mud log system, would imply a much larger, figure in the actual formation. So in the case of, take for instance, the 10 hydrogen in the, Cambrian sandstone, the flathead, that would imply something of a magnitude much higher than 10% in the actual formation. So that was very, very exciting. On the helium side, when you have that magnitude above ambient air of 5.2 parts per million, that implies a robust helium system.

31:44 Now generally speaking, helium in any formation, is anywhere from, you know, say, point three to 3% mostly. Only on very rare occasions do you have upwards of 10% helium. But if you have the volumes behind it, smaller concentrations of helium become commercial. In this case, we essentially twinned a well, meaning we drilled very close to the old wellbore that that was, flow testing at eight and a half million a day of raw gas, which we now know to contain helium. So we're we're very excited about, the MUDLOG results. We think they're they far exceeded our expectations and and believe that that we're sitting on a very unique system here.

32:32 Fantastic. And just, one more question on Clinique one. Will you wireline what you already have drilled first once the shale has been recased or go straight to drilling further if the hole allows? Assuming a successful reentry and setting intermediate casing over the problem formation, which is the Mowry Shale, we will attempt to deepen the well, come back out, do a wiper trip in order to clean the the side of the the wellbore out, and then we'll run wireline logs. So if we run wireline logs, it will be through the the deepened formation and everything else above it up until the bottom of the intermediate casing set wherever that is.

33:18 So, no, we we we won't run logs till very end. A question on a comment made regarding the hydrogen readings. Has there been any interest from other companies in the Ingramar project? Not yet. This hydrogen show is very new, very, very exciting. We think it's incredibly unique. I think from our vantage point, given the other players in the space like Coloma or Hitera, we are leaps and bounds ahead of them, right, because we actually have a wellbore with with hydrogen shows. So we are extremely excited, but do not yet know what it actually means.

34:07 The the fact that we have such high readings is is enormous. It's it's fantastic, but we cannot quantify at this stage. It's merely a a fascinating development that we've uncovered. Thank you. How confident are you that you have the right team, rig, and tools to address the shale issue? Very highly confident. The the reservoir engineering or sorry. The the drilling engineering firm that we hired, they've been in the business a long time. Fact of the matter is shale is can be very, very tough. Shale can drink the water in the mud system and, like a clay. Sometimes it absorbs it and expands and will will slough off into the wellbore.

34:54 That's exactly what we had here. We drilled this well with, polymer based water water mud so as to prevent this from happening. However, the Mower shale was so loosely consolidated that it just gave us problems. These were unanticipated problems, but problems like this do happen. I've been in the business for, you know, drilling wells for thirty two years now and, you know, seldom does a well go perfectly every single time. You do have these problems. But going forward, we have a postmortem makes us believe that a KCL based mud, potassium chloride based mud will hold that shale back, and so that we can hold it back while the while we put that seven inch casing, intermediate casing in there. So we believe we've got it under control. It is certainly not without risk, but the probability is quite high that we can have a successful reentry here.

35:51 Thank you. Is the depth of the Precambrian at Ingemoor known, and how confident are you you can drill it with the new rig? We are very confident we can drill into, the Precambrian with this second rig. This is a a double rig that can that can go very deep that can drill very deep wells. So we know we can hit it. Where it is, we don't know. We know we're sitting very close to it because the Cambrian sandstones only sit right on top of the Precambrian rock. So we know we're very close. We could be hitting repeat sections on the way down, but, yeah, we think we in another 100 feet, we should at least cover the Precambrian. That's our estimate anyway.

36:40 Is Ingramar looking commercial for helium and hydrogen? Yes. On on the helium, absolutely. Again, we offset the the well in 1944 that that tested eight and a half million day of water free gas containing nitrogen, never analyzed for helium. We now know that contains helium. On the hydrogen side, we are uncertain. However, the quantity of of hydrogen in that system is is beyond anything that we've ever seen. So we can't really quantify it. We don't know if it's yet commercial, but it is certainly something that warrants further investigation. If if we do find it and it's it's, it's water free and that hydrogen can be produced, this would be the cleanest hydrogen you could produce anywhere on planet Earth.

37:30 There is only one well on planet Earth that is presently producing hydrogen, and that is in Mali, Africa. That's about 98% pure hydrogen, and they're using that hydrogen to power a small village. Now there are other companies out there looking for the stuff. They have not yet found it. That puts us in the lead, if this is indeed a commercial well. Great. Do you have exploration and appraisal plans beyond Ingramar and Ridyard? Right now, we're focused on those two projects. Ingramar, obviously, our marquee project, that's the one we're gonna put, the most focus on. It's it's the largest by far. Rudyard is a is an excellent project. We have demonstrated commercial flows of helium, bearing gas in there.

38:20 So, no. Down the down the road, of course, we're gonna look at other projects, but we need to stay laser focused on the two projects that we have in hand right now. Great. How are the forward sale and partnership plans shaping up for CapEx development and distribution post testing? CapEx on on processing facilities, those are very bespoke creatures. They are built on the composition of the gas and the flow rates, both of which we do not yet know. So we'll have a better handle on what we're looking at or what our needs are on processing once we have those metrics delivered.

39:10 As far as off take, that's what Greg Peters is on our board for. He is a professional, was with for years. He knows where the Helium's gonna go. We're very lucky to have him. So really no concerns on on where the offtake's gonna go. It's on the hydrogen side. If if it's there, the world is ours. There's lots of places to go with that ammonia production. For instance, these ammonia manufacturers are looking for green hydrogen anywhere they can get, you know, hydrogen for any other uses. They need for their ESG stamp, they need green hydrogen. This would be the greenest hydrogen you could find anywhere on globe. Fantastic.

39:55 And then just a question around shareholder dilution. How committed are you to maintaining a small number of shares in issue and indeed not diluting your own holding? Well, I mean, we are sat in a room with the with the two biggest shareholders who are also the chairman and the chief executive. So for us, it's really important not to, not to dilute ourselves, but also not to dilute our investors. You know, people invest in, us for to grow and develop a company, and that's exactly what we're planning to do. And we're planning on doing that in the best interest of all shareholders. Thanks, David. When the wells are flowing, is there a route to market, or do we have to wait until the processing plant is finished?

40:49 To cash to cash flow, we need post production, post plant. So we will have certainly begun discussions on offtake agreements prior to plant fabrication. But, as far as molecule sales, that won't happen until a a plant is produced. And it also And to be fair, you know, it's that's not a long timeline. You know, we're sort of we're still targeting first production, before the end of twenty twenty five. So, you know, we should rapidly get into positive cash flow once we get move moving. But, no, there's no there's no market for raw gas unless we sort of trucked it to a toll treatment, and that would not have any market. But there there'd be no margin there. It wouldn't be in wouldn't be in in anyone's interest.

41:38 Are you going to hold on to the larger rig and drill a second hole, but this time go deeper than 8,000 feet? We have the ability. We have, we have staked another location near the clink number one well, it is certainly in the realm of possibility depending on the results of this particular well. And do we have any percentage numbers for the helium shows? No percentage numbers. Again, the the mud log can only measure pieces of pieces, percentages of percentages. But the fact that it's there and is being very diluted in the mud system means that the the actual composition of the helium in the actual formation is much higher than you would ever see in the mud system.

42:27 So the the magnitude of helium shows in the Amstin and Charles formation were so high that we would anticipate, certainly something in the in the very commercial range of helium production. Thank you. And what has been the cost impact due to the change in the rig? Will you be using the same rig for RIDJARD? So, yeah, as I said in answer to the first question, we're looking at about $500,000, maybe up to $7.50, for using this rig for the reentry. But we are we have the the plan remains to use the Treasure State rig for heading at Ruddyard.

43:12 As I showed in the the in one of the early slides, it's a this is a highly competent rig. It's a very competent rig with a very competent crew. It's only really a very, very unusual set of circumstances, which has resulted in us getting stuck here with clink and having to to to bring in the Precision Drilling rig. We're we're delighted to put precision drilling to join our our our team, and we can certainly see them being use use of the Ingram. But, yeah, we're we're we're the precision drilling rig is perfect for what we need at, and that's what we'll be using it for. Thank you, David. And I know we've slightly touched on this, but how much of a risk is it that reentry with the new rig might completely fail?

44:00 There is always that risk. Nothing is without risk in the exploration world. Sloughing shales can be an issue. So there there is certainly we we can't sugarcoat it and say there is no risk here. That's just patently false. We do, however, have a very high probability that we can reenter this thing, and that's that's what we have to go with. The fact of the matter is we've we've analyzed the situation of the Mowry Shale and believe that we can get past it with this KCL mud. We've had second and third opinions from from, various experts on what our our best path forward is, each of whom have said that a a successful reentry is highly probable, but we certainly can't discount the risk.

44:50 From from my point of view, and I've not been drilling for thirty two years like Bo has, I'm new to this sort of oil and gas technology and what these guys can do with these rigs out out out in The USA. So, you know, we just put together from my point of view, I think we've put together the best team that we can. You know, we've we've got the the the best rig that's available. We've got the best crew in Montana to welcome the engineering, the design of these things. We've got a plan a, a plan b, and a plan c in in in place, and all of the experts are telling us we've got the best chance that we have. As Bo said, it's not without risk, but I'm excited to to have a pop. Thank you, David.

45:38 Can you rule out a placing in the near future before the completion of CLINC one? Yes. Great. And the next question is along the same lines is, if all goes to plan, when do you expect first income? Everything goes to plan. I'd be looking for production before the end of twenty twenty five. You know, there will be, obviously, debt to service as that first cash that that comes through. And we yeah. We're also looking at. We're looking at a module expansion plan with the first module financing, second mod module. So there could be a gap between first income and first dividends. But, yeah, we are ambitious to be a good quality dividend paying stock, you know, churning out cash distributions to shareholders every year while also becoming the, you know, the the the agglomerator for low risk helium and now hydrogen projects on the Montana Helium Fairway.

46:47 So we can grow into a sort of a medium sized helium producer and distributor in The United States, which becomes a strategic competitor in the market and which is sort of a a disruptive new entrant into into the space. Thank you, David. Assuming a large complex reservoir, is there any any limitation to gas extraction if gas spans the license boundary? Beyond the license boundary? Absolutely. Certainly possible. We've got the entire anticline very well covered, so we're we're very comfortable, with regards to aerial extent.

47:33 If it does go beyond the scope, you know, I I don't I don't see any issue there. I think we can, especially out of the Cambrian sandstones, those are very porous and permeable sands. We should be able to drain a whole lot of gas per section per one square mile of land, which of which we have many here. So really no concerns on my end. It's a very large anticline, and we've got the entire anticline as mapped at least as mapped on the surface under lease. Thank you, Beau. And then there's just two more questions. The first one is when do we get to meet other members of the board of directors and hear about their exciting plans for HELIX.

48:20 They are equally excited to meet all of you all. So we we hope to get them over in London in November. It just depends on everybody's timelines, but love our team. You know, so much experience under their belt. They are the right people for this particular project and this company. And, yeah, can't wait for you all to meet up. Thank you. And the final question is from someone just out of interest. How many employees do HELIX have? Would drilling be entirely outsourced so the company actually has very few staff? I think you're speaking to the staff now, aren't you? Yeah.

49:06 There's me and both. We've got what we do have is we've got a team of consultants. So, you know, people like the petroleum consultants based out in Billings and Montana, who do a fantastic job of engineering the wells we're drilling and, you know, and the and the reentry that we're about to start. We've got the the teams on on the rig. We've got the treasure state drilling. We've got precision drilling. We've got a whole range of of of support here in London, including Emily here, Camarco is asking the questions. So we're a big organization with a low number of employees, which keeps our burn rate down.

49:55 That's great. Emily, thank you very much indeed for taking us through to today's questions. I think that's pretty much every question. If there are any other questions, of course, we can make those available to you guys post today's call. David Bow, I know investor feedback will be particularly important to you both, and I'll shortly redirect investors on the call to give you their thoughts and expectations. But perhaps before doing so, David, I could just return to you for a couple of closing comments. I just want to say thank you to everybody for joining. I hope that the presentation has helped to sort of, reflect our excitement as we come back into CLINC one, and explain to you little bit about what we found and why we're so keen to to bring this bring precision drilling in to to to to reenter the well.

50:40 I think the next few weeks for the for the for the for the company are gonna be really interesting as we reenter clinic and as we move on to drilling in in in. There's an awful lot to look forward to in the next few few few months. So thank you much for your time. Thank you much for your questions. And, yeah, we look forward to keeping the marketing informed as we advance our operations. That's great. David, Beau, thank you once again for updating investors. If I could please ask investors not to close the session as we now automatically redirect you for the opportunity to provide your feedback in order the company can better understand your views and expectations. This may take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of HELIX EXPLORATION PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.