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Helena Oil & Gas offers innovative investment opportunity

Wednesday, January 30, 2019

• Helena Oil & Gas offers fully-regulated investment in active oil and gas project via the Helena Security Token (HEST)
• HEST will reduce the cost of investment, ensuring dollars are spent on the project, not bureaucracy or brokers
• Purchasing HEST tokens provides access to Helena Oil & Gas planned IPO
• Led by a team of oil and gas experts, the company has already invested USD8 million and drilled two of 16 wells. Output is above expectations

Helena Oil & Gas is looking to attract fresh investment to its oil projects in Texas by creating the Helena Security Token (HEST).

The creation of HEST lets investors support an existing, active project in the oil and gas sector without having to pay many of the extensive administrative and brokerage fees that are traditionally associated with the sector. This makes it a superb opportunity to diversify an investment portfolio with oil and gas.

From Helena's perspective, having investments come through the HEST token will remove a great deal of the back-office costs, attract a wider pool of investors than has traditionally been the case with comparable projects. It will also ensure that the company enjoys transparency of ownership and can focus its resources on the project rather than clerical activities.

Helena Oil & Gas holds more than three thousand acres in 20 oil and gas leases in Dimmit County, Texas. The two ?elds, Big Wells and Good Luck, have third-party con?rmed reserves of 6.85 MMbbl oil and 2.8 Bcf gas.

Over USD8 million has already been invested in the project. Activities completed so far have included initial production rate tests which were carried out in November 2017 at the Big Wells 1 site and exceeded expectations by almost 100%. Two wells have been drilled so far and the initial output was well ahead of forecast.
The company's ambition is to drill a further 14 wells at its sites and increase daily production from 200 barrels to 2,500 barrels.

'There are several reasons why we are taking this innovative approach to attracting investment,' says Christoph Mahler, chief financial officer at Helena Oil & Gas. 'With the US moving towards becoming a net energy exporter, there is a great deal of focus on the sector in America. By offering HEST as a simple, transparent way to invest in our project, we are opening ourselves up to a wider pool of investors who can use an investment in us to make sure that their portfolio is diversified and balanced. Competition is fierce in the oil and gas industry, so we have to ensure that we are making the most of every dollar that is invested with us.'

HEST are initially valued at EUR1 per token. Since the Proven oil reserves amount to 6.85 MMbbl, calculatory, each HEST indirectly represents around 9 litres (or 2.4 US gallons) of crude oil in the ground. The tokens can be converted into class-B shares in Helena Oil & Gas when the exercise period arrives in 2021. The HEST private sale commences on 15 January and runs into the first quarter of 2019. A full public sale will follow. Exercise of the warrants takes place in July 2021. The company is currently valued at EUR100 million but this could increase to EUR500 million based on the proven reserves and the business plan.

Associated Companies
» Helena Oil & Gas
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