About The Helium4K Prospect

HELIUM4K LLC, as ISSUER, has development rights in and to 4,000 acres, more or less, of shallow gas helium rights in Cowley County, Kansas, (the “Contract Area”).

TO DEVELOP THESE RIGHTS, Helium4K LLC proposes to sell up to 75% of the Joint Working Interests in and to an 81.25% Net Revenue Interest lease, to carry the costs of drilling, testing, completing, and equipping for production, as necessary, a well on each 40 acre location (each “Drilling Unit”), which shall penetrate the four potential helium zones which have been historically productive in the region.

HELIUM4K LLC shall cause an Operator, to execute a TURNKEY CONTRACT to drill, test, complete, and equip a well for production on each 40-acre drilling unit committed to a depth sufficient to penetrate the four potential shallow gas helium zones at a depth not to exceed 1,500’.

4,000

59

Acres of Helium Rights

Minimum Investment:

Interest in 1 Helium Well:

Reccomended Minimum:

Interest in 3 Helium Wells:

$4,333.00

2 1/2%

$12,999.00

2 1/2%

Helium4K LLC Recommends Participating In The Drilling And Completion Of Three Wells

Interest

2 1/2 %

5 %

10 %

One Helium Well

$4,333

$8,666

$17,333

Two Helium Wells

$8,666

$17,332

$34,666

Three Helium Wells

$12,999

$25,998

$51,999

Planned Wells:

Working Interest For Sale:

Net Revenue Interest:

Projected Percentage Return On Value Of Reserves:

80

75%

81.25%

2831%

Tax Advantaged

• Intangible Drilling Costs (IDCs) Carry A Choice of Advantaged Tax Treatments

  • Write off 100% of IDCS in the Year of Investment (85% of Investment), or,

  • Depreciate 100% of Drilling Costs Over Seven Years

• Property Plant And Equipment Tax Advantage

  • Depreciate Tangible Personal Property (Retrievable Equipment) Over Seven Years (15% of Drilling Investment)

• Production Tax Advantages

  • 15% of Gross Production From Natural Gas Is Income-Tax Free As An Above-Line Deduction Under the Federal Depletion Allowance.

Asset Investment

• Investment Is A Purchase Of A Proportional Interest In An Oil And Gas Lease

  • You Will Receive An Assignment Of Oil And Gas Lease Covering Your Proportionate Part Of The Drilling Unit(s)

  • Your Separate Interest In The Oil And Gas Lease Will Be Recorded In The Real Estate Records of Cowley County, Kansas Court House

• The Property Interest Is A Working Interest In A 40-Acre Drilling Unit On An Oil And Gas Lease

  • Your Undivided Working Interest In the Drilling Unit(s) Entitles You To Your Proportionate Share Of Helium Production, and Production And Surface Equipment Used In Connection With The Well(s)

  • Your Separate Title To Your Working Interest Entitles You To Receive Production Payments Directly From The Helium Refiner, And You Pay Your Montly Lease Operating Expenses On Production

Turnkey Drilling Contracts

• Investment In A Drilling Unit Includes A Pre-Negotiated Turnkey Contract To Drill A Helium Well

  • Payment Of One Investment Price Covers Your Cost Of Acquisition, Drilling, Geological Testing, Completion, and Equipping The Well For Production on a 40-Acre Spacing

Recommendation

• Helium4K Recommends Investing In A Three Well Program to Triangulate Geological Data And Reduce Risk

  • $4,333 Purchases 2 1/2 % Of A Turnkey Well, 2 1/2 % Of The Oil And Gas Lease On The Drilling Unit, And 2 1/2 % Ownership Interest In The Equipment Used To Produce The Well.

  • Helium4K Recommends Allocating Your Planned Investment Amount Across Three Wells, Such That, $12,999, For Example, Would Be Split Amongst Three Wells At 2 1/2% Ownership In Each, Rather Than 7 1/2% Investment In One Well.

Expansion Area

• This Project Has 4,000 Acres, And There Is Room To Participate In Up To 80 Wells On The Helium4K Prospect.

• Our 59 Years Of First Hand, Local, Industry Knowledge, Informs Us That The Size Of This Project Could Be Tippled By Incorporating Nearby Prospects.

Years Of Local, Industry Specific Experience

20 Billion

Cubic Feet Of Gas Reserves Projected

$368 Million

Projected Value Of Helium Reserves