Helix Exploration (HEX) Investor update summary

Operational update and project status

• Clink-1 well was drilled from August 11 to August 23, 2024, on time and within budget, with no accidents or incidents; the well is now paused awaiting a new, more capable rig for re-entry and completion scheduled for early October.

• Helium was confirmed in all target horizons (Amsden, Charles, Flathead formations) during drilling, with gas shows at a total depth of 8,030 ft, except the Precambrian, which was not reached.

• Significant hydrogen shows were detected, especially in the Cambrian and Flathead formations, with concentrations up to 10.5% and grades increasing with depth.

• Flow testing, wireline logging, and completion of the stacked reservoir system are planned post-re-entry to determine reservoir quality, gas grades, and commercial viability.

• Targeting two discoveries (Ingomar and Rudyard) before end of 2024, with production aimed for end of 2025.

Financial position and capital allocation

• IPO in April 2024 was significantly oversubscribed, raising $10 million, with $4.1 million budgeted for two wells; share price has performed strongly since listing.

• Additional re-entry costs for Clink-1 estimated at $500,000–$750,000; company remains well-funded for 12–18 months and fully funded for all planned exploration activities.

• No near-term equity placing planned; management is committed to minimizing dilution.

Technical and commercial outlook

• Ingomar Dome project has a P50 helium resource of 2.3 BCF (upside >6 BCF), NPV8 over $300 million, and potential free cash flow >$600 million over 20 years.

• Rudyard project is a proven helium discovery with in situ value over $250 million, acquired recently.

• Hydrogen market potential is significant, with geological hydrogen possibly being the cheapest and greenest form.

• Commerciality for helium at Ingomar is highly likely; hydrogen potential is unique but requires further testing.

• Processing plant and offtake agreements will be finalized post-testing; first income targeted before end of 2025.