Helios Energy Ltd. reported that the drilling of the Presidio 52#1 well has commenced. The Presidio 52#1 well is targeting the Ojinaga Formation (primary target)
but also the Eagle Ford Formation (secondary target) as well as older (deeper) Cretaceous units being the Buda, Georgetown and Edwards limestone Formations (all secondary targets). At the Presidio 52#1 well location, the lower bench of the Ojinaga Formation is at a depth of approximately 6,950 feet and the bench is
approximately 650 feet thick. The Presidio 52#1 well will be drilled to a total depth (TD) of 9,800 feet. The Presidio 52#1 well location permits a very cost-effective penetration into Buda, Georgetown and Edwards interpreted traps as well as representing a prime location and depth for the Ojinaga Shale Formation. The previously completed 88 miles of 2D seismic has established a thick presence of Austin Chalk age equivalent Ojinaga Formation across Helios' entire acreage position of 85,685 gross acres. The thickness of the Ojinaga Formation ranges from 1,000 feet in the eastern section of Helios' acreage to 2,000 feet in the western section. In addition, these 88 miles of 2D seismic has established a thick presence of Ojinaga Formation across the entire Ojinaga Formation play area which is approximately 300,000 acres in size. The lower bench of the Ojinaga Formation shows well on both 2D and 3D seismic and is easily mapped. During the past 4 months, Helios completed its new 2D seismic work program. The program involved line clearing and shooting an additional 11 miles of 2D seismic. This new 2D seismic (2 lines of approximately 5.5 miles each) augments the existing old 2D seismic which covers the location of the Presidio 52#1 well. The new 11 miles of 2D seismic has easily mapped the lower bench of the Ojinaga Formation in the Presidio 52#1 well. At the Presidio 52#1 well location, the lower bench of the Ojinaga Shale Formation is between 6,950 and 7,600 feet and is therefore approximately 650 feet thick. Helios has successfully tested and produced oil from all the wells it has drilled which have penetrated the Ojinaga Formation. The oil analysis shows that the oil in the Ojinaga Formation is sourced from the Eagle
Ford shale. The Eagle Ford shale has an average thickness across the Presidio Oil Project of 460 feet. When the Presidio 52#1 well is drilled, the well will pass through the Eagle Ford Shale on the way to the Buda, Georgetown and Edwards Formations. The interpreted thickness of the Eagle Ford Shale at the Presidio 52#1 location is 870 feet.