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HELIOS ENERGY LTD (HE8) - Untapped Treasures: Helios Energy's Texas Oil Ambitions
Discover how Helios Energy is poised to reshape the Texas oil landscape with Managing Director Philipp Kin at the helm. Having joined in November 2023, Phil reveals how this ASX-listed company has secured a first-mover advantage in an unexplored basin in West Texas that shows remarkable similarities to one of America's most prolific oil-producing regions.
The conversation takes us deep into the technical aspects of Helios's flagship Presidio Oil and Gas Project, where four successful wildcat drill sites have already demonstrated production potential. Most compelling is the project's comparison to the legendary Austin Chalk formation, which has yielded over 600 million barrels of oil since the 1920s. This analogy isn't just impressive—it's a roadmap for investors to understand the massive potential that lies beneath Helios's 85,000+ acres.
What sets this story apart is the strategic approach Phil outlines for Helios's future. The company has attracted elite engineering talent from W.D. Von Gonten, secured financial backing from respected investment firms like Thorney Investments, and mapped a clear path toward becoming a dividend-returning producer by 2026.
Whether you're an existing shareholder or considering energy investments in your portfolio, this episode offers valuable perspective on how technical expertise, strategic partnerships, and targeted land acquisition combine to create exceptional shareholder value in the oil and gas sector. Subscribe to ASX Briefs for more exclusive conversations with the leadership teams driving Australia's most promising listed companies.
Andrew Musgrave Host
Welcome back to ASX Briefs, the podcast that dives deep into the strategies, stories and successes of Australia's listed companies. And today we're joined by Philipp Kin, the Managing Director of Helios Energy Limited, a company on a mission to commercialise a significant oil and gas resource in West Texas, USA, their flagship Presidio Oil and Gas Project. Philipp, thanks for joining me today and welcome to the ASX Briefs podcast.
Philipp Kin Guest
Thank you, Andrew.
Andrew Musgrave Host
Now Phil. For investors that may be unfamiliar with Helios now, you only joined as the MD late last year, so can you just provide a brief overview of the company?
Philipp Kin Guest
I joined mid-November last year. Yeah, it's been an interesting run. The company is a company that focuses solely on onshore Texas unconventional. The company has found a significant prolific and unexplored basin in West Texas, in Presidio County, and has a first mover advantage there. We've got a significant acreage position with four successful wildcat drill sites being done, with oil being produced and gas being produced to surface. So, we are mainly in the process of technical exploration, exploitation and production of oil and gas.
Andrew Musgrave Host
Okay, and the recently released independent contingent resource report validates significant hydrocarbon potential in the Presidio project. So, what do you see as the most compelling takeaway for investors from that report?
Philipp Kin Guest
The contingent resource report that we had commissioned does indeed highlight some very significant contingent resources about 17.5 million 2C. However, what I would like investors to take away from that is that only captures a small part of the stratigraphic column about 40% of the actual natural gas production column there. So, what I would expect investors to look forward to in the future is, as we continue to explore and re-enter these wells and continue to do more technical engineering, drilling would expect those volumes to actually increase with regards to the overall 2C volumes attributable to Helios,
Andrew Musgrave Host
And the lower Ojinaga Formation in particular, has drawn strong comparisons to the Austin Chalk. So how does that analogy help investors understand the value proposition?
Philipp Kin Guest
So, a very good question. The Austin Chalk is actually, it's an analogue for the Austin Chalk and the Austin Chalk actually is what is the main producing field in the Giddings Field in Midland Texas and, for viewers listening, the Giddings Field so far has produced 600 million barrels of oil and continues to produce to this day. So, an analogue or something that looks very similar to it, with the same sort of techniques and drilling and fracking techniques can be applied to it will be something that is very, very profitable and very large for the company with regards to production. So easiest analogue is it looks like something that has been producing since about the 1920s and has produced about 600 million barrels of oil so far.
Andrew Musgrave Host
And the company has brought in W.D. Von Gonten Engineering to shape the development path forward. So, what specific expertise are they bringing to the table and how will they help de-risk the asset?
Philipp Kin Guest
W.D. Van Gonten is. We're very lucky to have them on board and they are the creme de la creme of engineering, petrophysics, fracking design and geological assessment consultants in Texas, they are used by the likes of Chevron, Exxon Mobil, EOG etc and the reason that they have taken a specific interest in a little company like us is our acreage position and the geological formations is what, as they've said, something new and something that they haven't seen before as a hydrocarbon-producing section and, as a result, they are dedicating a significant amount of time and effort looking at it, when normally they wouldn't have even begun discussions with a company of our size. So, they are taking care of everything from the geological modelling through to the technical assessment, through to the fracking design, through to picking our next well locations, and we're very lucky to have them along.
Andrew Musgrave Host
Okay, and now? What is the strategic rationale behind pursuing potential joint venture or farm-in partnerships at this stage of the project life cycle?
Philipp Kin Guest
With regards to, obviously, costs, as an ASX listed company we have to be very aware of our costs, and drilling wells and trying to develop wells is a cost exercise and for our shareholders we're trying to obviously get the best bang for our buck. So, looking for a farm-in partner or looking for someone to potentially free carry for our first couple of wells is always a marketing slash strategic decision, but it also A you know, shares risk, so it de-risks us from the point of view of sole risking a single well. We might still want to do that. However, with regards to if you bring in a partner and if it's a success, you both benefit from it, but they're carrying the bulk of it. But you know, if unfortunately, it is a failure, then you've only paid for half the world, for example, or even less. There are other ventures that we're looking at, like Sol being, you know, free carried with a profit share or revenue share uplift and various other kind of marketing type strategies that we're looking at.
Andrew Musgrave Host
And just looking at costs and capital, how is the capital position of the company at the moment?
Philipp Kin Guest
We've been very lucky with the capital position of the company ever since I've joined. Anyone looking at kind of you know the history since I've joined in November, we did a director's loan, of which I participated in. We then did a convertible note, of which we had Thorney Investments participate in and Thorney Investments is very well known around the investment traps and we're very lucky to have them on board. As a result, we also bulked up our directors. We've had John Cathcart join the board, who's worked with Thorny in the past. That's something they're very excited about. We've also done a convertible note, of which I also participated in as well, which helped shore up company finances, and we've just finalized a capital raise and an underwritten rights offer. So, in terms of company funding, no, we do not need to go to the market cap in hand. We've got the cash that we need to continue forward on the drilling program. So, we've been very lucky. Gleneagle have been a very large supporter. Our broker have been an incredible supporter of the company also.
Andrew Musgrave Host
Okay, and how are you positioning the company not just as a project developer but as a potential player in the broader US energy landscape?
Philipp Kin Guest
With regards to positioning the company in the broader landscape, what we have identified in Presidio County is something that has been overlooked for quite a period of time. There are historical leases close by that are owned by Chevron. I'll let listeners draw their own conclusions as to why they might be holding on to it. But with regards to positioning ourselves to take advantage of the next kind of US oil boom, and obviously with Trump, drill, baby drill, you know being cognizant in everyone's minds we are looking and fine-tuning what our next set of acreage positioning and acquisitions will be. The idea, ideally, what I'd like to do with the company is build up our acreage position of prime cherry-picked acreage, contiguous sections, and then entice a major to come in. And you know, either you know drill it for us and free carry us for, obviously, a certain percentage, and or, if we have success and are able to drill a few of our own, then the value per acre of our properties goes up significantly and then, ideally, I'd like to transition us into a full-time producer.
Andrew Musgrave Host
For shareholders and prospective investors. Tuning in today, what would you say is the outlook for Helios for 2025 and 2026?
Philipp Kin Guest
Thank you. A good question. My outlook for 2025 is to ensure that Helios is now a technically driven producer that uses proper technical and engineering expertise to pick its well locations to develop its technical and production program and to utilise that to really understand the core part of our acreage and also utilise that for an expansion program with regards to expanding our acreage position. Going forward into 2026, ideally, I would like to go there being a producer with a significant revenue stream that is able to carry our operations and also carry our exploration program and our acquisition program going forward. Land is very important in terms of acquisition, but it has to be the right land. It has to be the one that has the best geological chance of success and, with a technically driven program, this year I will be focusing on acquiring the proper land and this year, going into 2026, will be used to drill it, develop it, produce it and ideally, I'd like to be a dividend returning provider to shareholders with Helios. So that's the long-term vision.
Andrew Musgrave Host
Okay, Phil. Well, it's been great to chat today, so thanks for your time and we look forward to further updates from Helios Energy in the upcoming months.
Philipp Kin Guest
Thank you, Andrew. Thank you very much for your time.
Andrew Musgrave Host
That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.