SUMMARY OF THE OFFERING
High Creek Energy formed High Creek Helium Joint Venture for the purpose of drilling and operating two helium wells in the Holbrook Basin. The total amount being raised is $5,000,000, which will be sold as Units, with each full unit receiving a 0.7% working interest in the two wells.
A working interest entitles the investor to receive percentage of the net income (gross revenues less overriding royalty interest and operating expenses). We estimate a overriding interests at 25%, yielding a net revenue interest of 0.525 per full unit. The following illustration provides a potential return on investment using the general assumptions:
| Number of Wells Drilled | 2 |
| Daily MCF Per Well | 5,000 |
| % Helium | 5% |
| Net Helium Yield Per Well | 250 mcf |
| Potential Sales Price Per MCF | $450 |
| Estimated Operating Costs | 25% |
We believe that these estimates are in line with industry averages in the Holbrook basin, which generally has a helium percentage between 4-9%, and operating helium wells producing between 2,500-20,000 mcf per day. If we achieve results consistent with the above assumptions, the following income potential is possible:
| Total Net Income | $46,195,312 | (250*2*$450*365days*75%NRI*75%) |
| Total Net Income Per Unit | $323,367 | Net Income *.7%WI |
| Annual ROR | 323% | Income per Unit/$100,000 Unit price |
The Offering
High Creek Helium Joint Venture is offering 50 Units, such Units having equal voting rights, on a percentage basis, with the all other outstanding Units of the Joint Venture, and each Unit entitling the registered owner to a 0.7% working interest in two helium wells.
Purchase Price
A total of Units are being offered for a price of $100,000 per Unit. As discussed more fully below, the Joint Venture reserves the right to reject some or all of any subscription, but may not delay accepting a subscription to change the applicable Purchase Price.
Purchaser Requirements
Purchase of the Units will be limited to subscribers who are “accredited investors” within the definition given in the Securities Act of 1933 (the “1933 Act”).
Subscription Documents
Subscription & Joint Venture Agreement.
Subscription Procedure
Each investor should submit completed Subscription Documents, to High Creek Energy, Inc.
Call us at (833)-914-2032 or email us at info@highcreekhelium.com to receive the Placement Memorandum, Subscription Agreement, and Joint Venture Agreement.