Helios Energy Ltd (ASX:HE8) provided an update on its activities for the quarter ended 30 June 2026, highlighting continued technical evaluation of its Presidio Oil & Gas Project in Presidio County, Texas, USA. The company progressed reviews of both conventional and unconventional oil and gas opportunities, identified potential drilling locations and continued assessing Partnership opportunities to advance the project.

During the quarter, Helios also strengthened its financial position through a Capital raising, raising approximately A$1.5 million through a Placement to support Working Capital requirements. The company ended the quarter with A$1.729 million in cash at bank.

The Presidio Oil & Gas Project remains the company’s primary asset, with Helios holding a 70% working interest in 5,120 leased acres held by production and a further 100% working interest in 2,118 leased acres located in Presidio County, Texas.

Technical Review Identifies New Conventional Oil and Gas Targets

Helios completed a technical review of the Presidio Oil & Gas Project with assistance from petroleum consultants W.D. Von Gonten Engineering LLC.

The review identified five new conventional well locations, with each location targeting different conventional oil and gas plays. These include the San Carlos Sands, Buda Limestone, Georgetown Limestone, Edwards Limestone and Hosston Sandstone formations.

The two highest-ranked conventional prospects identified through the review are Proposed Location Marshall and Proposed Location Croft. Helios is evaluating the option of securing a farm-in joint venture partner to drill conventional vertical wells at both locations.

The company commenced a sales process during the quarter to seek potential partners for these conventional drilling opportunities, with cost budgets for the proposed wells finalised.

Unconventional Sweet Spot Provides Additional Development Opportunity

Alongside conventional targets, Helios continued evaluating unconventional opportunities across the Presidio Oil & Gas Project.

The technical review identified a 15,500-acre unconventional “sweet spot” containing the Ojinaga Formation and Eagle Ford Shale Formation. These formations form part of a broader play area exceeding 100,000 acres within the vicinity of the project.

Helios is considering a farm-in joint venture arrangement to drill a Horizontal Well within this unconventional sweet spot to validate recoverability and productivity. The company commenced the related partner engagement process during the quarter.

The company stated that the unconventional plays contain a large wet gas resource, with gas isotope analysis indicating wetness ratios consistent with oil-associated gas classification. The Ojinaga and Eagle Ford formations are visible on both 2D and 3D seismic data and extend across the broader project area.

Presidio Wells Continue Supporting Project Evaluation

Helios has drilled four wells within the Presidio Oil & Gas Project: Presidio 52#1, Presidio 141#2, Quinn Creek 141#1 and Quinn Mesa 113.

The company reported that all four wells have successfully tested and produced oil. The Presidio 52#1 well reached a total depth of 8,806 feet and encountered the lower bench of the Ojinaga Formation and the Eagle Ford Shale Formation, along with deeper Cretaceous formations including Buda and Georgetown.

The lower bench of the Ojinaga Formation was encountered at 6,632 feet and measured 793 feet thick. The Eagle Ford Shale Formation was encountered at 7,425 feet and measured 836 feet thick.

Helios reported oil and gas shows throughout the lower Ojinaga and Eagle Ford sections, with gas isotope analysis indicating wetness ratios between 24% and 30%, corresponding to oil-associated gas classification.

The company stated that interpretation of well results combined with seismic data indicates an oil and gas column across the Presidio Project averaging approximately 2,000 feet in thickness, with recovery potential estimates of 5,000 to 10,000 barrels of oil equivalent per acre.

Infrastructure Supports Potential Future Development Pathway

Helios has established infrastructure supporting its Presidio operations.

Access to the four wells is provided through a 25-mile unsealed road constructed by Helios, connecting to the sealed US-90 highway. The project has access to water supplies from local aquifers, while Crude Oil can be transported by truck to the El Paso Oil Refinery located approximately 170 miles away.

The company has also installed permanent production facilities at the Presidio 141#2 well location, including a three-phase separator, oil tanks, water tanks and a flare stack. Quinn Creek 141#1 has been connected through piping to the shared production facilities at the Presidio 141#2 location.

These facilities provide existing operational infrastructure as Helios evaluates future development Options across the project.

Partnership Strategy Remains a Key Focus

Helios is pursuing potential farm-in joint venture partnerships to support future drilling and development activities.

The company is evaluating partnerships for both conventional vertical wells and an unconventional horizontal well within the identified sweet spot area. These partnerships could provide additional technical capability and funding support for future project activities.

During the quarter, Helios raised approximately A$1.5 million through a placement of 502,300,680 fully paid ordinary shares at A$0.003 per share for working capital purposes. The company also extinguished A$100,000 of convertible note Debt through the issue of shares.

Risks and Uncertainty Factors

The Presidio Oil & Gas Project remains subject to exploration, development and commercial uncertainties.

While Helios has reported successful testing and production from four wells, future development decisions depend on additional technical evaluation, drilling outcomes, funding arrangements and potential joint venture partnerships.

The company’s proposed conventional and unconventional drilling opportunities require further assessment, including partner participation, approvals and capital requirements.

Oil and gas projects are also exposed to Commodity price movements, operational costs, regulatory requirements and market conditions.

What to Watch Ahead

Investors may continue monitoring Helios Energy’s progress across the Presidio Oil & Gas Project.

Key areas of focus include:

  • Progress on farm-in joint venture discussions for conventional and unconventional drilling opportunities.
  • Further evaluation of the Marshall and Croft conventional prospects.
  • Potential drilling plans within the 15,500-acre unconventional sweet spot.
  • Additional updates from existing Presidio wells and production facilities.
  • Future development decisions based on technical and commercial assessments.

Helios Energy’s latest quarterly update highlights continued technical advancement of the Presidio Oil & Gas Project, supported by conventional and unconventional opportunities, existing infrastructure and ongoing partnership discussions. The company remains focused on progressing evaluation activities and identifying pathways to advance the Texas oil and gas asset.