|Location:||Custer, Carter and Fallon Counties, Montana|
|NPV10 and IRR||US$341 million for the natural gas development project alone - helium development presents strong upside potential|
|Status:||Drilling and Development|
Highlands Natural Resources is developing the Helios 2 Project, which comprises 105,485 acres in Custer, Carter and Fallon Counties, Montana. Highlands has drilled two wells on the project to date.
Numerous gas shows have been observed throughout the region where historic gas analysis indicates high biogenic methane (natural gas) concentrations and 0.36% helium content (similar to world-class Hugoton field in Kansas). An Independent Report by RPS Knowledge Reservoir indicates a “best estimate” indicative success case NPV10 of US$341 million for the natural gas development project on a 69,120 acre area. This success case valuation does not include specific economics for the Helium and RPS’ best estimate of 2.1 Bcf of net attributable helium for a 69,120-acre area would be incremental to natural gas development economics.
Highlands is conducting a pilot programme to demonstrate the technical and economic viability of dewatering; validate the engineering and economics outlined in the RPS Competent Person’s Report and; affirm RPS’ projections of the long-term economic potential of the Helios Two prospect. Significantly, Highlands has confirmed through multiple gas analyses the presence of 90% methane and 0.31% to 0.33% helium in gas produced from Highlands’ first well in the project.
Helium, which is auctioned by the U.S. BLM for more than $100/mcf, is an essential feedstock for numerous industrial, medical, scientific and commercial applications including nuclear power generation, magnetic resonance imaging (‘MRI’), industrial fabrication and welding, fundamental sciences and research, fiber optics, space and defence applications, semiconductor manufacturing, and many other applications. Significantly, helium currently has no substitute in cryogenic applications requiring temperatures below -220 degrees Celsius. Highlands believes that helium’s role as a critical and irreplaceable component of numerous modern industries will underpin future global demand.