Helios Energy Ltd. reported that the Presidio 52#1 well has been cased and cemented to a measured depth (MD) of 8,255 feet. The Presidio 52#1 well is targeting the lower bench of the Ojinaga Formation (primary target) but also the Eagle Ford Shale Formation (secondary target) as well as older (deeper) Cretaceous units being the Buda, Georgetown and Edwards Limestone Formations (all secondary targets). The lower bench of the Ojinaga Formation was encountered during drilling at the depth of 6,632 feet and the lower bench of the Ojinaga Formation is 793 feet thick.

The Eagle Ford Shale was encountered during drilling at a depth of 7,425 feet and is 849 feet thick. The Buda Limestone is projected to commence in a further 19 feet from the casing point at the depth of 8,274 feet. Very good to excellent oil and gas shows were observed throughout the drilling of the entire lower bench of the Ojinaga Formation and throughout the drilling of the entire Eagle Ford Formation including down to the casing point of 8,255 feet.

Gas was consistent throughout the drilling and reached over 8,000 units. The gas has a high percentage of heavy gas components with 25% or more of C2 to C4 sampled. At a depth of 8,255 feet (only 19 feet above the projected commencement of the Buda Limestone) it was necessary to increase the mud weight to 11.5 pounds per gallon (ppg) to manage the gas levels in the well.

Helios has extracted 30 rotary sidewall cores from the Ojinaga Formation and Eagle Ford Formation which had live black oil. Cuttings retrieved from the core tool were covered with oil. The strong observed oil and gas shows suggests there are several highly naturally fractured in intervals in both the lower bench of the Ojinaga Formation and the Eagle Ford Shale Formation.

A comprehensive suite of logs was run over the Ojinaga Formation and Eagle Ford Shale Formation prior to the extraction of the 30 sidewall cores. Analysis of these logs and the observance of very good to excellent oil and gas shows throughout the drilling of the entire lower bench of the Ojinaga Formation and throughout the drilling of the entire Eagle Ford Formation resulted in Helios deciding to case and cement the well to 8,255 feet (bottom of the Eagle Ford Shale Formation). The casing and cementing of the well to 8,255 feet has now been successfully completed.

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 Formation. The Eagle Ford Shale Formation has an average thickness across the Presidio Oil Project of 460 feet.

In the Presidio 52#1 well the Eagle Ford Shale Formation was encountered during drilling at a depth of 7,425 feet and it is 849 feet thick.