Helios Energy Ltd (ASX: HE8) has updated the market on its future development strategy for the Presidio Oil & Gas Project in West Texas. Helios Energy is focused on the exploration and development of resource projects. The company is pleased to announce that following a comprehensive technical review with strategic consultants W.D. Von Gonten (WDVG), it has further defined the sweet spot within its unconventional play and identified several high-impact conventional oil and gas targets.
The technical work has pinpointed a sweet spot within the broader ~100,000 acre fairway. The directors believe that these acres share favourable geological and engineering characteristics, enabling the core play to be tested with fewer wells. Helios plans to restart production from two existing wells (141#1 and 141#2) to provide production data and early cashflow. It intends to drill 1–2 further production test wells in selected locations in the sweet spot to confirm target well production and recoverability benchmarks.
In parallel with the unconventional play, Helios’s technical work has identified multiple high-impact conventional targets, primarily in the San Carlos and Lower Cretaceous formations. The strategy is to farm out selected conventional targets, reducing capital exposure while retaining material upside. Several conventional targets also provide the opportunity to simultaneously further test the unconventional formations.
Managing Director Philipp Kin commented that the past 12 months of technical work have provided clarity on the path forward. The company now knows where the sweet spot of its unconventional play lies and has identified a series of conventional prospects with significant potential. By combining these opportunities with a disciplined approach of maximum return for minimum spend, Helios is positioning itself for a transformative 12 months ahead.
