Helios Energy has confirmed significant contingent resources at its Presidio Project in West Texas, supported by new technical partnerships and a strengthened leadership team. The company raised $4.3 million to advance its development plans amid a shifting US energy landscape.
- Independent report confirms 13.3–21.7 MMBOE net contingent resources in Lower Ojinaga Formation
- Engagement of W.D. Von Gonten Engineering to lead advanced technical work
- Key board and management appointments including John Cathcart, Paul Fudge, and Edward May
- Raised $0.7 million via convertible notes and $3.6 million through placement and entitlement offer
- Helios holds 70% working interest in 7,877.8 acres of Presidio leases with no changes this quarter
Resource Validation Marks a Turning Point
Helios Energy Ltd (ASX: HE8) has taken a significant step forward in its Presidio Project in West Texas, with an independent contingent resource report confirming a net estimate of 13.3 to 21.7 million barrels of oil equivalent (MMBOE) in the Lower Ojinaga Formation alone. Prepared by Foundation Energy LLC, the report validates Helios’ technical thesis that the Ojinaga Formation is analogous to the prolific Austin Chalk formation, known for its substantial hydrocarbon production.
This validation not only confirms the scale of the resource but also highlights substantial upside potential as further work progresses on additional formations within the project area. The contingent resource classification currently places development on hold, but the report provides a robust foundation for advancing the project.
Technical Expertise and Strategic Leadership Bolster Execution
Complementing this technical boost, Helios strengthened its leadership team with the appointments of John Cathcart as Non-Executive Director, Paul Fudge as Commercial Advisor, and Edward May as Chief Financial Officer. These additions bring deep operational, commercial, and financial expertise, particularly within the US and Australian energy markets, positioning Helios to navigate the complexities of project execution and capital markets engagement.
Capital Raising Supports Momentum
Financially, Helios secured $0.7 million through the issuance of interest-free convertible notes and a further $3.6 million via a placement and fully underwritten entitlement offer. These funds are earmarked for advancing technical and geological workstreams, including WDVG’s modelling efforts, as well as reclamation planning and well design. The capital raising also strengthens the company’s balance sheet, ensuring operational continuity and flexibility.
Helios now holds a 70% working interest in 7,877.8 acres of leases in Presidio County, Texas, with no new leases added or expired during the quarter. This stable acreage position underpins the company’s strategic focus on derisking and advancing the Presidio Project through enhanced technical analysis and commercial planning.
Navigating a Shifting Energy Landscape
Managing Director Philipp Kin highlighted the broader context, noting growing support for domestic energy development in the US. This evolving environment offers a more favourable backdrop for companies like Helios, which possess high-quality onshore assets and a clear strategic plan. The combination of validated resources, expert technical partners, and strengthened leadership sets the stage for Helios to transition from exploration to execution.
While the contingent resource status means development remains on hold pending further work, the company’s recent progress signals a pivotal moment. Investors and analysts will be watching closely as Helios deploys its new capital and expertise to unlock the Presidio Project’s potential.
Bottom Line?
Helios Energy’s validated resource base and fresh capital position it to move decisively on Presidio, but execution risks remain as development plans unfold.
Questions in the middle?
- How will WDVG’s technical work influence Helios’ development timeline and capital requirements?
- What are the prospects for converting contingent resources into reserves and advancing production?
- How will the new leadership team shape Helios’ commercial strategy amid US energy policy shifts?