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Helios Two Project

15

“The P50 indicative success case valuation

(NPV10), before income tax, calculated for

the 100 Section development based on

capital cost and operating cost estimates

built up by RPS is US$341MM.

This

indicative success case valuation does not

include specific economics for the Helium...

as noted above, however, Helium is in

increasing demand and could be a

significant upside to the existing success

case based on the methane project alone.”

“The last [helium] auction price was

$104.00/Mcf but international and private

sales can command double that price.

Demand continues to grow and the Federal

Helium Reserve’s resources are expected to

be significantly depleted if not exhausted

by 2020, meaning that the requirement to

develop new fields into production is strong

and the helium price in the US can

reasonably be expected to increase steadily

to at least double the current price.”

10

100

1,000

10,000

0

100

200

300

400

500

600

700

Gas Rate (Mcf/day)

Months

Muddy Sands: Type Well Production Forecasts

P10

P50

P90

R P S E s t i m a t e s o f P r o s p e c t i v e N a t u r a l G a s

a n d H e l i u m E U R ’ s

Source: RPS Knowledge Reservoir