Helios Energy (ASX: HE8) Announces Major Resource Validation for Presidio Project
Helios Energy Ltd (ASX: HE8) has reported a validation of substantial hydrocarbon resources at its Presidio Project in West Texas. An independent Contingent Resource Report highlights a net contingent resource of 5 to 8 million barrels of oil, 2 to 4 million barrels of natural gas liquids (NGL), and between 36 to 57 billion cubic feet of gas, translating to approximately 13.3 to 21.7 million barrels of oil equivalent (MMBOE).
The report confirms Helios’s analysis that the Ojinaga Formation is analogous to the highly productive Austin Chalk formation, which has previously yielded around 600 million barrels of oil in East Texas. This independent assessment adds credibility to the project and outlines Helios’s potential to tap into this previously underexplored area.
Operational Overview and Future Potential
Drilling activities led to the discovery of substantial quantities of potentially recoverable hydrocarbons. Gas Initially in Place (GIIP) from the Upper Ojinaga to the Lower Eagle Ford averages 57.4 billion cubic feet per 640-acre section. Oil and condensate yields range from 36 to 188 barrels per million cubic feet (MMcf).
The company describes the report’s findings as a transformational opportunity, with Managing Director Philipp Kin stating: “[This independent report] confirms that Presidio is a new substantial play.” He also noted that the company aims to maximise recovery and reduce costs with the wealth of knowledge now on unconventionals and Helios’s dedicated technical expertise. He also mentioned future efforts focusing on technical evaluation, infrastructure development, and ongoing regulatory engagement.
Strategic Development Pathway
Helios Energy is committed to advancing the Presidio Project, with plans for enhanced technical evaluations and exploring joint venture opportunities to accelerate development. The company anticipates commercialising the substantial hydrocarbon resources available, leveraging the insights gained from this significant report to drive growth and shareholder value.
The Contingent Resource Report underscores a firm foundation for Helios’s growth trajectory, with a strategic focus on the Presidio Project as a core asset moving forward.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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