Helios Unveils 15,500-Acre Sweet Spot and Dual Strategy at Presidio
Helios Energy has pinpointed a core unconventional sweet spot within its Presidio Project and identified promising conventional targets, setting a clear path to de-risk and unlock value through a dual-track development strategy.
- Defined ~15,500-acre contiguous unconventional sweet spot
- Plans to restart production from two existing wells for early cash flow
- Drilling of 1–2 horizontal wells to validate unconventional play productivity
- Multiple high-impact conventional targets identified for farm-out
- Dual-track approach aims to reduce capital risk and maximize shareholder value
Helios Sharpens Focus on Core Unconventional Acreage
Helios Energy has taken a significant step forward in its Presidio Oil & Gas Project in West Texas by defining a core unconventional sweet spot spanning approximately 15,500 contiguous acres. This area, confirmed through extensive technical work, exhibits homogeneous geological and engineering characteristics that could allow the company to efficiently test and develop its unconventional resources with fewer wells. The identification of this sweet spot follows over US$40 million invested in evaluating the Ojinaga and Eagle Ford formations, which hold an independent best-estimate resource of around 140 million barrels of oil equivalent.
A Pragmatic, Phased Development Strategy
Conventional Targets Add a Layer of Opportunity
In parallel with its unconventional focus, Helios has identified multiple high-impact conventional oil and gas prospects primarily within the San Carlos and Lower Cretaceous formations. These conventional targets overlap the unconventional acreage, offering an intriguing dual opportunity. The company plans to farm out selected conventional prospects to reduce capital exposure while retaining meaningful upside potential. Moreover, drilling conventional wells may also allow simultaneous testing of unconventional formations, enhancing data collection and cost efficiency.
Unlocking Value Through Dual-Track Development
Helios’s dual-track strategy; combining focused unconventional development with selective conventional farm-outs; aims to unlock significant shareholder value by balancing risk and reward. The company’s managing director, Philipp Kin, emphasized that this approach positions Helios for a transformative year ahead, leveraging technical clarity gained over the past 12 months. The strategy also aligns Helios’s acreage values more closely with regional Permian Basin comparables, potentially re-rating the project’s valuation as operational milestones are achieved.
Looking Ahead
With plans to secure additional leases within the sweet spot and advance farm-out discussions for conventional targets, Helios is gearing up for a busy second half of 2025 and early 2026. The market will be watching closely as production restarts and new wells are drilled, providing critical data points that could reshape perceptions of the Presidio Project’s potential.
Bottom Line?
Helios’s clear-eyed, dual-path strategy could redefine its Presidio asset’s value; if upcoming drilling and farm-outs deliver as hoped.
Questions in the middle?
- How will production data from the restarted wells influence investor confidence and project valuation?
- What terms and timelines will emerge from farm-out negotiations for the conventional targets?
- Can simultaneous testing of unconventional formations during conventional drilling reduce costs and accelerate development?
