Helios Energy Hits First Oil Sales, Eyes Next Drilling Phase at Presidio

Transition to Production

Helios Energy Ltd (ASX, HE8) has taken a significant step forward in its Presidio Oil Project in Texas by completing its first oil and condensate sales. This milestone marks the company's transition from a pure exploration focus to early-stage production, a critical phase that brings revenue generation into view. Production restart efforts at wells 141#1 and 141#2 have been central to this progress, with the company refurbishing surface processing and storage facilities to support ongoing operations.

Operational Optimisation and Data Gathering

The restart activities are not just about production but also about gathering valuable reservoir and mechanical data. Helios is actively optimising flow rates and operational efficiency at the restarted wells, aiming to convert these exploration and appraisal wells into longer-term producers. This approach reflects a disciplined use of existing infrastructure and a Texas-based technical team engaged on flexible contract terms, underscoring the company's focus on capital discipline.

Strategic Planning and Funding Outlook

With geological programs and drilling approvals for the next well now complete, Helios is turning its attention to securing funding for the next stages of the Presidio project. The company is in detailed discussions with multiple parties to finance land acquisition, technical work, and drilling programs. Managing Director Philipp Kin emphasised the complexity and timeliness of these discussions, highlighting the company's commitment to finding the best funding solutions for shareholders.

Financial Position and Corporate Discipline

As of 31 December 2025, Helios held A$193,000 in cash and maintained a disciplined approach to corporate expenditure. The company also has an undrawn $500,000 credit facility from Gleneagle Securities, bearing a 12% interest rate. Despite ongoing operating cash outflows, Helios retains the ability to raise additional capital under existing placement capacities, reflecting a cautious but flexible financial strategy as it navigates the transition to production.

Community Engagement and Land Position

Helios continues to foster constructive relationships with key landholders in Presidio County, Texas, securing strong support for its restart efforts and potential new lease acquisitions. The company currently holds a 70% working interest in 5,120 leased acres and 100% interest in an additional 2,118 acres, positioning it well for future development across a 15,500-acre unconventional sweet spot and multiple conventional prospects.