Ann: Oil to Surface - Quinn Creek 141, page-6

Today's Highlights from Announce on Oil to Surface ! Oil to Surface from Austin Chalk equivalent section Oil and gas have been recovered from the Austin Chalk equivalent section in the first behind pipe test in the Quinn Creek 141 well. A naturally fractured zone of 10 feet was perforated between 4,968 and 4,978 feet at 1 shot per foot and then acidized with a small amount (1200 gallons) of acid. The well initially flowed back 17 barrels of load water. Oil and gas were then recovered during the subsequent swabbing with the oil cut reaching 20%-30% of the swabbed fluids. Oil and water samples have been sent to the lab to analyze so to compare the oil recovered in Quinn Mesa 113 from the Austin Chalk equivalent section and the oil recovered from the muds pits during the drilling of Quinn Creek 141 at 3,400 feet. The well then began flowing a small rate of gas (25 mcfpd) with 45 psi pressure. Helios will now move up hole and test the next interval in the Austin Chalk equivalent section with an increased acid stimulation. The plan is to test several thin zones individually over a 243 feet interval of the Austin Chalk equivalent section which had oil and gas shows, are naturally fractured and have logged pay. If warranted, and subsequent to these individual zones being tested, Helios will proceed to fracture stimulate the entire 243 feet as a single stage frack job. No evidence of high rates of fresh water have been encountered in the testing of the Austin Chalk equivalent section. Prior to testing the Austin Chalk equivalent section, the Buda Carbonate, lower Eagle Ford (Boquillas Limestone) and upper Eagle Ford Shale were tested separately in the open (uncased) hole between 5000 and 6000 feet. Helios Energy Ltd Date: 2 May 2018 ASX Code: HE8