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ASX Announcement: HE8

Posted by Justin Rosenberg on 27-Aug-2018 11:14:42
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New Oil Discovery in Presidio Oil: Project Oil Discovery in the Ojinaga Shale Formation

Summary

  • Observations to date evidence a new oil discovery
  • Oil Discovery in the Ojinaga Formation
  • Very Encouraging Oil Production from a Single Frack Stage
  • Very Encouraging Gas Production from a Single Frack Stage
  • High Quality Oil
  • Highly Naturally Fractured Lower Interval
  • Thick & Easily Fracked Lower Bench
  • Easily Mapped with 2D & 3D Seismic
  • Excellent Porosity and Permeability
  • New Seismic Program to commence

The Board & Management are very pleased to provide this shareholder update which marks a significant milestone.

In late June 2018, Helios successfully completed a one stage frack in the vertical Quinn Creek 141 well to test oil shows and log indications between 4,744 and 4,880 feet in the lower Ojinaga Formation. On 19 July 2018, the Company reported that the well flowed 260 barrels of oil and 1,345 barrels of completion fluid in 168 hours (7 days). The oil produced is good quality, mature, 39 degrees API gravity light oil similar in composition to Eagle Ford oils. Gas was also produced at 456 mcf per day on a 34/64ths of one inch choke. As the well cleaned up and the percentage of completion fluid recovery rose, a steadily increasing oil cut was observed. Total load recovery (until the lower interval was shut in) is approximately 35% (3,509 barrels of completion fluid out of 10,187 barrels of completion fluid injected).

Click here for the full announcement.

Last trade was 13c, representing a 139% annualised return since our placement at 6.4c in Dec 2017 and a 415% annualised return since our IPO raising at 2c in May 2017.

Please contact us for further queries or subscribe (on the right of this page) to receive further updates.

Justin Rosenberg

Corporate Finance – Executive Director

Gleneagle Securities (Aust) Pty Limited

Level 27, 25 Bligh Street, Sydney NSW 2000

Mob: +61 414 450 154

Ph: +612 8277 6683 | Fax: +612 9475 0154

Email: justin.rosenberg@gleneagle.com.au

Topics: Mining, Announcement