Helios Energy's (ASX:HE8) priorities included bringing its discovered wells at the Presidio oil and gas project in Texas into production and establishing operational cash flow, its Managing Director, Philipp Kin, said in a shareholder update on Friday.

Concurrently with establishing cash flow from production, the firm will allocate capital to targeted drilling and expansion efforts to unlock the wider potential of the Ojinaga and Eagle Ford formations at the project.

It is also evaluating new well targets based on W.D. Von Gonten Engineering's reservoir modelling and existing seismic data.

A reduction in staff and administration, and corporate costs has also been a priority for the firm, and it said it had reached a "level appropriate for a junior explorer."

It continues to work with W.D. Von Gonten Engineering in order to advance production planning.