Highlights

  • Presidio project combines conventional and unconventional oil and gas prospects in Texas.
  • FY26 technical review identified potential conventional drilling locations and an unconventional focus area.
  • FY26 results included an exploration expenditure write-off and an increased annual loss.
  • June 2026 placement provided additional working capital for the company.
  • Future drilling depends partly on technical decisions, funding and prospective partnership arrangements.

Helios Energy Ltd (ASX:HE8) is an Australian-listed oil and gas explorer whose principal asset is the Presidio Oil and Gas Project in Presidio County, Texas. Its FY26 disclosures set out technical work on conventional and unconventional targets, the search for possible drilling partners and financial results affected by a substantial exploration expenditure write-off. These matters shape the company’s development priorities.

Presidio Acreage and Drilling Options

Helios Energy (ASX:HE8) reported a 70% working interest in 5,120 leased acres held by production and a 100% interest in another 2,118 acres. The company also reported 70% interests in four project wells. Its FY26 technical review identified five potential conventional drilling locations targeting the San Carlos Sands, Buda Limestone, Georgetown Limestone, Edwards Limestone and Hosston Sandstone.

The two highest-ranked conventional locations were designated PL Marshall and PL Croft. Helios Energy (ASX:HE8) identified a potential farm-in arrangement as one option for drilling vertical wells at these locations. The company said partner discussions began during the June 2026 quarter and cost budgets for the proposed wells had been finalised. Neither a farm-in agreement nor a drilling commitment was established by that disclosure.

Unconventional Targets and Project Infrastructure

The technical review also delineated a 15,500 acre unconventional focus area involving the Ojinaga Formation and Eagle Ford Shale within a wider approximately 100,000 acre play area. Helios Energy (ASX:HE8) identified a horizontal well as a possible way to assess recoverability and productivity, subject to securing suitable arrangements. The review described wet gas characteristics, with isotope-derived wetness ratios of 24–30%.

Field infrastructure includes a formed access road and production facilities at the Presidio 141#2 location, comprising a separator, storage tanks and a flare stack. Quinn Creek 141#1 is connected to those shared facilities. These installations provide an operating footprint, but the company’s technical descriptions should not be interpreted as proof of commercial production from proposed new wells.

FY26 Earnings, Cash and Funding

For the financial year ended 30 June 2026, Helios Energy (ASX:HE8) reported revenue from operations of A$5,469 and a loss after tax of A$23,114,711. The result included an A$21,349,493 exploration expenditure write-off. The year-end cash balance was A$1,729,044 and net assets were A$23,404,063. These figures show the financial importance of exploration asset assessments rather than an established production revenue base.

During the June 2026 quarter, the company completed a placement raising A$1,506,902 for working capital. It also exchanged A$100,000 of convertible-note debt for newly issued ordinary shares, without receiving further cash from that exchange. FY26 net operating cash outflow totalled A$1,249,254. Helios Energy (ASX:HE8) therefore remains dependent on careful expenditure planning as it assesses possible future drilling programmes.

Key Insights

Presidio remains the centre of the company’s exploration activity, with defined conventional prospects and an unconventional focus area. The FY26 accounts also show limited operating revenue and a material write-off of exploration expenditure. For Helios Energy (ASX:HE8), subsequent disclosures on funding arrangements, partner discussions and any committed drilling will be important to understanding how the proposed work advances.