23 Nov

4th Well - Presidio Oil Project - Seismic

Helios Energy Ltd ASX Code: HE8 Directors Hui Ye Non - Executive Chairman Richard He Managing Director Robert Bearden Non - Executive Director Nicholas Ong Non - Executive Director John Palermo Company Secretary Contact Details Australian Office Level 3, 18 Richardson Street West Perth WA 6005 Australia PO Box 1485 West Perth WA Australia 6872 Tel +61 1300 291 195 Fax +61 8 6298 6191 USA Office 3 Riverway, 17 th Floor Suite 17 5 0, Houston Texas USA 77056 Tel +1 713 333 3613 Fax +1 713 583 0965 www.heliosenergyltd.com 23 November 2021 20182018 ust 2018 4 th Well – Presidio Oil Project – Seismic Seismic Agreement with Chevron Helios Energy Ltd (ASX Codes: HE8, HE8OA) ( Helios or Company ) has concluded an agreement with oil major Chevron regarding the acquisition of new seismic in Presidio County over oil and gas acreage owned by Chevron in south - west Presidio County, Texas. Helios, at its cost, will undertake the works required to acquire the seismic and under the terms of the agreement the seismic data will be shared with Chevron. The agreement covers an area of 20 square miles (12,800 acres) in south - west Presidio County, Texas, USA. 11 Miles – 2D Seismic – 4 th Well Helios is rapidly pro ceeding through its new 2D seismic work program . The program involves line clearing and shooting an additional 11 miles of 2D seismic. This new 2D seismic (2 lines of approximately 5.5 miles each) will augment the existing old 2D seismic which covers the l ocation of the 4 th well . The full acquisition, processing and interpretation of this 2D seismic will take approximately 5 weeks to complete and it now anticipated that this will be completed by January 2022 . 4 th Well – 1,200 Acres – Interpreted Buda Trap – Interpretation from 2D Seismic T he previously completed 88 miles of 2D seismic has established a thick presence of Austin Chalk age equivalent Ojinaga Formation across Helios’ entire acreage position of 85,685 gross acres . Interpretation of a subset of that 2D seismic has resulted in Helios forming the view that a 1,200 acre enclosure or trap at the Buda Formation level may be present at a location south - west of Helios’ third well, Presidio 141#2. The interprete d trap is a 3 - way fault closure at the Buda interval over 1,200 acres. This is the chosen location of Helios’ 4 th well in the Presidio Oil Project. The opportunity to drill into the lower bench of the Ojinaga Shale Formation was present in all the proposed drilling location choices. At this location , the lower bench of the Ojinaga Shale Formation is at a depth of approximately 7,000 feet. The 4 th well will be drilled to a total depth ( TD ) of over 9,000 feet. The location chosen for the 4 th well permits a very c ost - effective penetration into an interpreted Buda trap as well as representing a prime location and depth for the Ojinaga Shale Formation . Helios Energy Ltd 23 November 2021 The Buda is a conventional oil play where the Eagle Ford Shale sources the porous and naturally fractured limestone reservoir. T he older Cretaceous units being the Buda, Georgetown and Edwards limestone formations will be found at 8,500 feet and deeper in this 4 th well . Eagle Ford Shale Formation The tested oil analysis shows that the oil in the Ojinaga Shale Formation is sourced from the Eagle Ford shale. The Eagle Ford shale has an average thickness across the Presidio Oil Project of 460 feet. When the 4 th well is drilled, the well will pass thro ugh the Eagle Ford Shale on the way to the Buda Formation. Ojinaga Formation Play Area – 300,000 Acres Helios has previously completed an analysis of 88 miles of 2D seismic which has established a thick presence of Austin Chalk age equivalent Ojinaga For mation across Helios’ entire acreage position of 85,685 gross acres . The thickness of the Ojinaga Formation ranges from 1,000 feet in the eastern section of Helios’ acreage to 2,000 feet in the western section. At the chosen location for the 4 th well, the Ojinaga Formation is approximately 1,500 feet thick and is at a depth of betwee n 6,000 feet to 7,500 feet. In addition, these 88 miles of 2D seismic has established a thick presence of Ojinaga Formation across the entire Ojinaga Formation play area which i s approximately 300,000 acres in size. Ojinaga Formation - Easily Mapped with 2D Seismic The lower bench of the Ojinaga Formation shows well on 2D seismic and is easily mapped. The new 2D seismic program involves line clearing and shooting an additional 11 miles of 2D seismic. This new 2D seismic (2 east - west lines of approximately 5.5 miles each which are positioned north and south of the old 2D seismic line which also runs east - west and which cov ers the location of the 4 th well) will be used to confirm and update the previous structural mapping and fine tune the exact location of the 4 th well. Helios Managing Director Richard He commented: “I am very pleased to have concluded a commercial seismic agreement with Chevron. They are an oil major and have substantial oil and gas acreage holdings in Presidio County, Texas. Acquisition of these 11 miles of new 2D seismic will begin within 2 weeks and we will begin drilling our 4 th well in early 2022”. F or further information, please contact: Richard He Managing Director Helios Energy Ltd 23 November 2021 Competent Person's Statement The information in this ASX announcement is based on information compiled or reviewed by Mr Neville Henry. Mr Henry is a qualified petroleum geologist with over 4 7 years of Australian, USA and other international technical, operational and executive petro leum experience in both onshore and offshore environments. He has extensive experience of petroleum exploration, appraisal, strategy development and reserve/resource estimation, as well as new oil and gas ventures identification and evaluation. Mr Henry has a BA (Honours) in geology from Macquarie University.

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