March 2018 Corporate Presentation - Royal Helium
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March 2018 Corporate Presentation
ABOUT ROYAL HELIUM CORP.
Helium Exploration and Development Play in Western Canada
Elements for Success in a Resource Play
Commodity People
§ High value and increasing price § Technical expertise and experience
§ Large and growing demand § Financial & public company experience
§ Decreasing supply § Domain experience in area
§ Non-substitutable § Focused management team
Targets Land
§ Multiple land packages § Largest helium lease holders in N. America
§ Highest known helium concentrations § 572 sections of land in Saskatchewan
§ Exisiting data, wells and production § Existing infrastructure – power, access
§ Multiple targets at each package § Excellent geo-political regime
TSX.V – RHC 2
CAPITAL STRUCTURE
Shares Outstanding 150,431,947
Warrants
$0.05 – Jul 2019 4,020,897
$0.25 – Dec 2018 14,353,455
Options
$0.085 600,000
$0.15 1,700,000
$0.25 2,386,568
$0.45 450,000
$0.50 1,000,000
Fully Diluted 174,942,867
Cash Position $600,000
TSX.V – RHC 3
MANAGEMENT TEAM
Scott Newman John Jeffrey
Chief Executive Officer Chief Financial Officer
Mr. Newman was the President and founding partner of Axiom Mr. Jeffrey is a graduate of the University of Saskatchewan with a
Exploration Ltd., a geological and engineering consulting company degree in economics and a MBA in finance. Mr. Jeffrey has a
based in Saskatchewan. Mr. Newman received his BSc in Geology strong background in operations and finance that has allowed
from the University of Saskatchewan. His technical and him to successfully execute large international engineering and
management experience within the sector, Saskatchewan in environmental projects. Formerly, he was the area finance
particular, brings a strong operational background to the team. manager for AECOM, a Fortune 500 engineering consulting firm
Mr. Newman has been involved as an executive or director to a in Canada and was the founder and CFO for Axiom Exploration
number of private and public oil and gas exploration companies. Ltd., a geological and engineering consulting company that has
drilled over 800 wells within western Canada.
TSX.V – RHC 4
BOARD OF DIRECTORS
Andrew Davidson Scott Newman
Chairman President & CEO
Mr. Davidson is a graduate of the University of Calgary Mr. Newman was the President and founding partner of
(B.Comm), Mr. Davidson is Chartered Professional Axiom Exploration Ltd., a geological and engineering
Accountant in both Saskatchewan and Alberta. Mr. Davidson consulting company based in Saskatchewan. Mr. Newman
has extensive experience in managing Junior natural is a graduate of the University of Saskatchewan. His
resource exploration companies, with a specific focus on the technical and management experience within the sector,
structuring and financing of early stage projects. He is Saskatchewan in particular, brings a strong operational
involved as an officer or director of a number of public background to the team. Mr. Newman has been involved as
resources exploration companies currently. an executive or director to a number of private and public
oil and gas exploration companies
Zoran Arandjelovic
Director John H. Pringle
Director
In over 20 years in capital markets, Mr. Arandjelovic has
been an investor, executive and director, in a number of TSX Mr. Pringle is a partner in the Saskatoon office of
and TSXV listed issuers. Most recently Mr. Arandjelovic was McKercher LLP, practicing in the areas of securities law,
a director and the Chairman of the Compensation natural resources law and corporate commercial law with a
Committee of Martinrea International Inc. (TSX: MRE) and focus on corporate finance, mergers and acquisitions and
the founder of Epsilon Energy Ltd. (EPS), a prolific natural natural resources. Mr. Pringle’s experience includes acting
gas producer in Pennsylvania’s Marcellus Shale. Mr. as counsel to issuers in more than ten initial public
Arandjelovic is also founder/manager of Capital Z offerings as well as several notable mergers, acquisitions,
Corporation, a highly successful private investment take-overs and sales.
company.
TSX.V – RHC 5
USES FOR HELIUM
Laboratory, 10%
Helium is an non-substitutable and Rocketry & Other,
Electronics, 4%
20%
non-renewable commodity needed
in todays high-tech industries with Leak Detection, 5%
Purging/Pressurizing , 3%
applications in rocketry, the
semiconductor and electronics Fibre Optics, 6%
industries and super cooling for
MRIs and superconductors. As Lifting, 8%
those sectors continue to expand,
MRI, 20%
the demand for helium also
expands. Welding, 17%
Cryogenic, 4%
Breathing, 3%
TSX.V – RHC 6
HELIUM PRICE
Grade-A Helium Price Chart
$300.00
$250.00
$200.00
$150.00
$100.00
$50.00
$-
2006 2008 2010 2012 2014 2016 2018
( $ CAD/Mcf)
Source: USGS, BLM, National Bank
TSX.V – RHC 7
HELIUM PRICE COMPARISON
2
He Helium
4,0026
1 Mcf of Grade-A Helium 1 Mcf of Natural Gas 1 Barrel of Liquid Helium
$200+ CAD $3.00+ CAD $850+ CAD
Source: USGS, BLM, National Bank
TSX.V – RHC 8
PROJECT LARGE LAND POSITION
§ 572 sections of Helium leases and permits
§ Lands acquired based on an ongoing,
thorough analysis of existing well, seismic
and geological data.
§ Associated with Saskatchewan’s highest
known helium concentrations
§ ~45% on 21 year helium leases, remainder
as exploration permits
§ All in close vicinity to highways, roads,
cities and oil & gas infrastructure
TSX.V – RHC 9
HELIUM GAS RELATIVE CONCENTRATIONS
Helium Concentrations in Saskatchewan with 0.30% Economic Cut-off*
* Saskatchewan Ministry of the Economy has 0.3% Helium as an economic cut-off for primary Helium production
3.00%
2.76%
2.50%
2.50%
Helium Gas Concentrations (%)
2.00%
1.56%
1.50% 1.41%
1.31%
1.13% 1.10%
1.00% 0.91%
On Production
On Production
0.50%
0.00%
Canadian Helium Corp. - Weil Group - Mankota North American Helium - Royal Helium Corp. - Royal Helium Corp. - Royal Helium Corp. - Royal Helium Corp. - Royal Helium Corp. -
Swift Current Battle Creek Griffin Ceylon Bengough Francis Weyburn
TSX.V – RHC 10TARGET FORMATIONS
SASKATCHEWAN
Stratigraphic Correlation Chart For updates, see
http://economy.gov.sk.ca/
StratigraphicCorrelationChart
ERA PERIOD EPOCH STAGE/ SOUTHWEST SOUTHEAST WEST-CENTRAL EAST-CENTRAL
AGE(Ma) SASKATCHEWAN SASKATCHEWAN SASKATCHEWAN SASKATCHEWAN
Surface
HOLOCENE
QUATERNARY 0.01
PLEISTOCENE 2.6
GLACIAL DRIFT GLACIAL DRIFT GLACIAL DRIFT GLACIAL DRIFT
CENOZOIC
PLIOCENE
NEOGENE
5.3 WOOD WOOD
MOUNTAIN
TERTIARY
MOUNTAIN
MIOCENE Remarks:
23
OLIGOCENE CYPRESS HILLS The province is subdivided into four geographic areas, separated by
PALEOGENE
34
o o
common boundaries along latitude 52 N and longitude 106 W.
EOCENE
55
SWIFT CURRENT
Numeric values for isotopic ages derived from Okulitch, A.V. (2004):
PALEOCENE
65 RAVENSCRAG RAVENSCRAG Geological Time Chart, 2004; Geological Survey of Canada, Open
FRENCHMAN FRENCHMAN
File 3040 (National Earth Science Series, Geological Atlas) -
? REVISION
BATTLE http://gsc.nrcan.gc.ca/org/vancouver/programs/images/geotimechart.2004_e.jpg
?
WHITEMUD
MAASTRICHTIAN
WHITEMUD
EASTEND EASTEND
BEARPAW BEARPAW
72
UPPER CRETACEOUS
(JUDITH RIVER)
BELLY RIVER
OLDMAN BELLY RIVER (JUDITH RIVER) OLDMAN
BELLY RIVER
CAMPANIAN
?
FOREMOST
BEARPAW
RIBSTONE CREEK
RIBSTONE CREEK
EQUIVALENT
CRETACEOUS
LEA PARK LEA PARK VICTORIA LEA PARK
LEA PARK
84
MILK RIVER ALDERSON ALDERSON ALDERSON
(MILK RIVER) (MILK RIVER) ALDERSON
(MILK RIVER)
SANTONIAN (MILK RIVER)
86 FIRST WHITE SPECKLED SHALE FIRST WHITE SPECKLED SHALE FIRST WHITE SPECKLED SHALE FIRST WHITE SPECKLED SHALE
MEDICINE HAT
CONIACIAN 89 NIOBRARA NIOBRARA NIOBRARA NIOBRARA
COLORADO GROUP
CARLILE CARLILE CARLILE MORDEN
MESOZOIC
COLORADO GROUP
COLORADO GROUP
TURONIAN
COLORADO GROUP
93 SECOND WHITE SPECKS SECOND WHITE SPECKS SECOND WHITE SPECKS FAVEL
BELLE FOURCHE
BELLE FOURCHE BELLE FOURCHE BELLE FOURCHE
CENOMANIAN
99 FISH SCALES FISH SCALES FISH SCALES FISH SCALES
WESTGATE WESTGATE WESTGATE WESTGATE
ST. WALBURG
VIKING NEWCASTLE VIKING FLOTTEN LAKE NEWCASTLE
CRETACEOUS
ALBIAN JOLI FOU
JOLI FOU JOLI FOU JOLI FOU SPINNEY HILL SPINNEY HILL
LOWER
COLONY COLONY
PENSE PENSE PENSE PENSE
McCLAREN McLAREN
MANNVILLE
MANNVILLE
MANNVILLE
MANNVILLE
WASECA WASECA ?
ATLAS ATLAS
CANTUAR
SPARKY SPARKY
CANTUAR
?
GENERAL PETROLEUMS GENERAL PETROLEUMS
DIMMOCK CREEK CANTUAR REX CANTUAR REX
DIMMOCK CREEK LLOYDMINSTER LLOYDMINSTER
CUMMINGS CUMMINGS
111
McCLOUD McCLOUD DINA DINA
APTIAN 122
~3000 meters
BARREMIAN
HAUTERIVIAN
VALANGINIAN
BERRIASIAN 142
SUCCESS S2 SUCCESS S2 SUCCESS S2 (INSINGER) SUCCESS S2 (INSINGER)
JURASSIC
TITHONIAN 150
UPPER
KIMMERIDGIAN
155 SUCCESS S1 SUCCESS S1
VANGUARD
OXFORDIAN MASEFIELD
VANGUARD
MASEFIELD
157
JURASSIC
ROSERAY RIERDON
CALLOVIAN RIERDON
161
RUSH LAKE
JURASSIC
MIDDLE
BATHONIAN
SHAUNAVON SHAUNAVON
RED JACKET
166
GRAVELBOURG GRAVELBOURG LOWER
BAJOCIAN
174 GRAVELBOURG
AALENIAN UPPER WATROUS UPPER WATROUS
TOARCIAN
178 UPPER WATROUS
LOWER PLIENSBACHIAN
SINEMURIAN
JURASSIC HETTANGIAN 200
UPPER RHAETIAN ? ? ?
NORIAN
TRIASSIC
TRIASSIC CARNIAN
LADINIAN
237 LOWER WATROUS LOWER WATROUS LOWER WATROUS
MIDDLE
TRIASSIC ANISIAN
? ? ?
244
LOWER
SCYTHIAN 253
TRIASSIC
PERMIAN
300
PENNSYLVANIAN
314
CHESTERIAN
CARBONIFEROUS
BIG SNOWY
MISSISSIPPIAN
GROUP KIBBEY
329
MERAMECIAN
POPLAR
CHARLES RATCLIFFE
MADISON GROUP
334 KILLDEER
MIDALE
FROBISHER
OSAGIAN MISSION KISBEY
MADISON
ALIDA
GROUP
CANYON
351 STRATHALLEN TILSTON
LODGEPOLE SOURIS VALLEY
KINDERHOOKIAN
360
BAKKEN BAKKEN BAKKEN
THREE THREE THREE
BIG VALLEY
PALEOZOIC
FORKS FORKS BIG VALLEY FORKS BIG VALLEY
GROUP TORQUAY GROUP GROUP
FAMENNIAN TORQUAY TORQUAY
373
BIRDBEAR BIRDBEAR BIRDBEAR
UPPER
DEVONIAN SASKATCHEWAN SASKATCHEWAN SASKATCHEWAN
GROUP DUPEROW GROUP GROUP SASKATCHEWAN
DUPEROW DUPEROW DUPEROW
GROUP
DEVONIAN
FRASNIAN
MANITOBA SOURIS RIVER SOURIS RIVER
383 SOURIS RIVER MANITOBA SOURIS RIVER
MANITOBA MANITOBA
GROUP GROUP
ST
1 RED BED GROUP st
1 RED BED GROUP ST
1 RED BED
ST
1 RED BED
DAWSON BAY DAWSON BAY DAWSON BAY DAWSON BAY
ND ND
GIVETIAN 2 RED BED nd
2 RED BED 2
ND
RED BED 2 RED BED
PRAIRIE PRAIRIE PRAIRIE PRAIRIE
MIDDLE ELK EVAPORITE ELK EVAPORITE ELK ELK
DEVONIAN EVAPORITE EVAPORITE
387 POINT POINT POINT POINT
GROUP WINNIPEGOSIS GROUP WINNIPEGOSIS GROUP WINNIPEGOSIS GROUP WINNIPEGOSIS
EIFELIAN
394 ASHERN ASHERN ASHERN
MEADOW LAKE ASHERN
DALEJAN
LOWER EMSIAN
409
DEVONIAN PRAGIAN
LOCHKOVIAN 418
UPPER
LUDFORDIAN
SILURIAN GORSTIAN 424
SILURIAN LOWER
HOMERIAN
SHEINWOODIAN
SILURIAN
TELYCHIAN
INTERLAKE INTERLAKE INTERLAKE INTERLAKE
AERONIAN
RHUDDANIAN 443
GAMACHIAN
STONEWALL STONEWALL STONEWALL STONEWALL
BIG HORN
BIG HORN
BIG HORN
BIG HORN
RICHMONDIAN
GROUP
GROUP
GROUP
GROUP
STONY MOUNTAIN STONY MOUNTAIN STONY MOUNTAIN STONY MOUNTAIN
ORDOVICIAN
Winnipeg Formation Helium
447
UPPER MAYSVILLIAN HERALD
ORDOVICIAN RED RIVER RED RIVER RED RIVER
YEOMAN
EDENIAN
TRENTONIAN WINNIPEG WINNIPEG WINNIPEG WINNIPEG
BLACKRIVERIAN 458
MIDDLE CHAZYAN
Deadwood Formation Helium
ORDOVICIAN
LOWER
ORDOVICIAN 489
TREMPEALEAUAN
UPPER FRANCONIAN
CAMBRIAN DRESBACHIAN 501 DEADWOOD Helium DEADWOOD DEADWOOD DEADWOOD
CAMBRIAN
MIDDLE
CAMBRIAN
PRECAMBRIAN + PRECAMBRIAN + + + + + PRECAMBRIAN + + + + + PRECAMBRIAN + + + + + PRECAMBRIAN + + + +
SANDSTONE CARBONATE GLACIAL DRIFT RED BEDS GAS UNCONFORMITIES
OIL
SHALE EVAPORITE + + PRECAMBRIAN KIMBERLITE MINE
Revised August 11, 2014
TSX.V – RHC 112018 WORK PROGRAM AND BUDGET
At present, RHC is continuing to acquire and evaluate 2D and 3D seismic over its main
project areas, including Val Marie, Shaunavon, Bengough and Frontier, with the view to
identifying the Company’s initial vertical exploration wells for its upcoming drill program as
well as drill locations for subsequent horizontal development well programs. RHC
anticipates to begin the vertical well program following spring break-up 2018.
Engineering & Administration $ 500,000
Seismic Acquisition & Interp. $ 500,000
Drill & Complete – Val Marie $ 1,500,000
Drill & Complete - Bengough $ 1,500,000
Drill & Complete – Shaun./Frontier $ 1,500,000
TSX.V – RHC 12ECONOMIC SUMMARY
Pro Forma Three Well Economics
350 $25,000,000.00
300
$20,000,000.00
Cumulative Net Operating Income (CAD)
250
$15,000,000.00
200
Rate (Mcf/d)
Cumulative Net operating Income:
$19,450,000 Cad
150
Rate of Return:
387% $10,000,000.00
Payout:
100 0.7 years
$5,000,000.00
50
0 $-
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Rem.
Rate (Mcf/d) Cumulative Net Operating Income (CAD)
TSX.V – RHC 13PROJECT OPERATIONS
SOUTH EAST SASKATCHEWAN
Saskatoon
Regina
Francis
Ceylon
Weyburn Griffin
Bengough
Estevan
TSX.V – RHC 14BENGOUGH AREA
§ ~36,000 Acres. 90 Km of 3D Seismic
§ First re-entry complete – work-over in process
§ Targeting data indicated high concentrations of gaseous helium present
within porous units in the Deadwood and Winnipeg Sands. (1.4% helium
from historic data)
§ 7 identified re-entry targets
Proposed Vertical Well
Re-Entry Well
TSX.V – RHC 15BENGOUGH TARGET 3D SEISMIC
§ 4 way closure on structural high
Structural High &
Closure
TSX.V – RHC 16BENGOUGH TARGET 3D SEISMIC
§ High amplitude in Winnipeg Sands indicative of gas
High Amplitude
TSX.V – RHC 17BENGOUGH TARGET 3D SEISMIC
§ 4 way closure on structural high with high amplitude in closure shows reservoir and trap
Proposed Vertical Well Structural High &
Closure & High
Amplitude
TSX.V – RHC 18PROJECT OPERATIONS
SOUTH WEST SASKATCHEWAN
Saskatoon
Regina
Shaunavon
Weil Group
Production Facility
Frontier
Val Marie
TSX.V – RHC 19PROJECT OPERATIONS
SOUTH WEST SASKATCHEWAN
§ Magnetic highs off the Val Marie arch and Bowdoin Dome.
§ W.T. Colin, 1965 interpret this dome periphery as a zone of weakness favorable for intrusive and Helium migration from basement.
Shaunavon
Weil Group
Production Facility
Frontier
Val Marie
TSX.V – RHC 20SHAUNAVON AREA
Proposed Vertical Well
§ ~144,000 acres. Available 2D seismic lines over property
§ Large anomalies potentially associated with favorable Helium reservoirs.
§ Other operators with successful wells.
§ “The possible economic importance of these structures in relation to
entrapment of petroleum and natural gas (including Helium) is obvious.”
*W.T. Colin, June 1965 “Interpretation of Two Associated Magnetic Anomalies in the Shaunavon Area”
TSX.V – RHC 21FRONTIER AREA
Proposed Vertical Well
§ 124.75 sections or ~80,000 acres of strategically acquired land
§ Available 2D seismic lines over property
§ Large anomalies potentially associated with favorable Helium reservoirs.
§ “The possible economic importance of these structures in relation to
entrapment of petroleum and natural gas (including Helium) is obvious.”
*W.T. Colin, June 1965 “Interpretation of Two Associated Magnetic Anomalies in the Shaunavon Area”
TSX.V – RHC 22FRONTIER AREA
Proposed Vertical Well
Source: L.K. Kreis, 2004. Lower Paleozoic Map Series – Structure Map of Deadwood Formation
TSX.V – RHC 23VAL MARIE AREA
§ ~72,000 acres.
§ Regionally adjacent to the currently producing helium facility owned and
operated by the Weil Group
§ Highly favorable structures funnel from the Williston Basin and Eastend
Syncline
§ Southern Bowdoin Dome intrusive body creates structurally favorable trap
§ Bowdoin Dome as potential source and pressure driver – thought to be the
source for the Weil Group’s Mankota
TSX.V – RHC 24VAL MARIE AREA
Shallow Low
Proposed Vertical Well
High
Source: L.K. Kreis, 2004. Lower Paleozoic Map Series – Structure Map of Deadwood Formation
TSX.V – RHC 25CONTACT US
Corporate Office Corporate Enquiries Investor Enquiries
Suite 101 – 3239 Faithfull Ave Scott Newman, CEO Dean Nawata, IR
Saskatoon, SK snewman@royalhelium.com dean@royalhelium.com
S7K 8H4
John Jeffrey, CFO
T: +1.306.291.2461 jjeffrey@royalhelium.com
W W W. ROYA L H E L I U M .CO M TSX.V – RHC 26DISCLAIMER STATEMENT
This presentation contains "forward-looking statements" including estimates of future production, cash flows and reserves, business plans for drilling and
exploration, the estimated amounts and timing of capital expenditures, the assumptions upon which estimates are based and related sensitivity analyses,
and other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance (often, but not always, using words or
phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimated" or "intends", or stating that
certain actions, events or results “may", "could", "would", "might" or "will" be taken, occur or be achieved). In particular, this presentation contains
forward-looking statements pertaining, to the following: the Company's anticipated 2016 land auction approval, capital budget and average daily
production, using internal funding to complete future acquisitions; the ability of the Company to maintain its balance sheet strength; type well economics
and performance; drilling inventory and reserve life index expectations; the anticipated impact of technical advancements on productivity and decline rates
and ultimate recoveries; the Company’s strategy to increase recovery factors; the ability of the Company to manage the current helium price environment
the Company’s business strategy (including development, enhancement, acquisition and risk management); capital cost, cost per well, NPV, rate of return
and payout. Statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, based on certain
estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in
the future. Furthermore, all resources estimates are non- NA51-101 compliant and strictly un-risked contingent resource estimates.. There are numerous
uncertainties inherent in estimating helium, crude oil, natural gas and NGL reserves and the future cash flow attributed to such reserves.
All forward-looking statements are based on RHC’s beliefs and assumptions based on information available at the time the assumption was made. RHC
believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will
prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. By their nature, such forward-
looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ
materially from those anticipated, expressed or implied by such statements. In addition, risk factors include: financial risk of marketing reserves at an
acceptable price given market conditions; volatility in market prices for helium; delays in business operations; processing restrictions; blowouts; the risk of
carrying out operations with minimal environmental impact; industry conditions including changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are interpreted and enforced; uncertainties associated with estimating oil and natural gas
reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational
matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands;
competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development
programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and
interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions; general economic, market and business conditions;
uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and
counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry. These
risks and uncertainties could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements.
The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent.
RHC assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Certain
information contained herein have been prepared by third-party sources. The information provided herein has not been independently audited or verified
by the Company.
TSX.V – RHC 27You can also read
