REG - Helix Exploration - Operational Update

Helix ExplorationAnnouncement

12/03/2025 07:00

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RNS Number : 2744A  Helix Exploration PLC  12 March 2025

12 March 2025

 

Helix Exploration PLC

("Helix Exploration" or "Helix" or the "Company")

Operational Update

Helix Exploration, the helium exploration and development company with
near-term production assets within the 'Montana Helium Fairway', is pleased to
provide an operational update on the Company's activities.

Highlights:

 * Binding Letter of Intent to acquire an additional production well (Weil #1)
and 640-acre leasehold from Global Helium for cash-consideration of £230k
($300k)

 * Drilling contract signed for the Linda #1 production well scheduled to spud
in April 2025

 * Clink #1 acidisation complete, gas sample recovered and submitted for
laboratory analysis

 * Primary focus remains first helium production at Rudyard Field, targeted for
summer 2025

Bo Sears, CEO of Helix Exploration, commented:

"We are now starting a highly active phase for the Company with the imminent
production of helium at Rudyard this summer. We will be drilling at Linda #1
next month and have agreed to acquire the Weil #1 well on favourable terms,
saving the Company over a million dollars by acquiring a production ready
well."

"Our approach is simple: build scale efficiently, develop resources
strategically, and deliver near-term cash flow. Rudyard is proving to be a
high-quality helium asset, and with each step forward, we are strengthening
our position in what we believe is one of the most promising new helium
districts in North America."

Rudyard Update: Linda #1 well drilling to spud in April 2025

Helix continues to progress the Rudyard Project to deliver helium production
in Montana this summer and has signed a drilling contract with Treasure State
Drilling for the Linda #1 well, which is scheduled to spud in April 2025.
The well location has already been surveyed, a bond has been posted, and all
necessary preparations for drilling are complete, pending final approval from
the Montana Board of Oil and Gas.

Linda #1 will be drilled in Section 34, approximately one mile south of the
Company's successful Darwin #1 well, which is awaiting the construction of
Helix's helium processing plant.  The well is designed as Helix's second
production well targeting the same Red River and Souris formations that
successfully flowed helium from Darwin #1.  The well, which will cost circa
$1.3m million to drill and complete, is expected to generate circa $4 million
per year in pre-tax cash flow(1) and is part of Helix's phased development
strategy to bring multiple wells into production at Rudyard, underpinning its
long-term cash flow potential.

Acquisition of Weil #1 and additional acreage in Rudyard area

Helix is strategically accumulating additional resources and acreage in the
Rudyard area in anticipation of first production.

Helix has entered into a binding letter of intent with Global Helium
Corporation to acquire the Weil #1 well and the surrounding 640-acre lease in
Section 28 for circa £230,000 ($300,000) in cash. The management team expect
that Weil #1 can double the Company's current production capacity at Rudyard.

Weil #1 was drilled by a private company in 2012, which tested 0.9% - 1.3%
helium with a flow rate of 2,500mcf/d, indicating strong reservoirs and the
potential for higher absolute overall rates.  The well is shut in and ready
to commence operation as a production well once connected to Helix's proposed
Rudyard processing plant.  With grade and flow rate similar to that
encountered in Darwin #1, Weil #1 has potential to generate a further $4
million per year of pre-tax cash-flow(1).

The acquisition is estimated to save approximately $1.3 million of drill
costs, demonstrating the Company's commitment to capital efficient
development.

Subject to the Company acquiring Weil #1, the Company will have two production
wells drilled and a third production well planned for April 2025. The Company
will be set to begin commercial production from the Rudyard field and
self-finance organic growth with additional production wells targeting Net
Revenue of $115 - $220 million over 12.5-year life of field and peak sustained
post-tax cash flow of $15-25 million per year.

Clink #1 Update

Helix has now completed acidisation of the Charles Formation at Clink #1,
successfully recovering a gas sample that has been submitted for laboratory
analysis. While initial flow rates from the Charles formation were below
commercial thresholds, the over-pressured nature of the reservoir indicates a
dynamic and charged system which may respond to mechanical stimulation in
subsequent drilling. The Company will assess the results of gas analysis
before determining next steps.

Operations at Clink #1 will now be temporarily suspended ahead of Sage Grouse
stipulations, which come into effect on 15 March 2025. Over the grouse season
the Company will evaluate plans to re-enter or re-drill the well during the
summer drilling window to appraise the deeper Flathead Formation, which
previously yielded high helium (2.5%) and exceptional hydrogen (55.2%)
concentrations in initial sampling. Given growing global demand for natural
hydrogen, the Flathead remains a highly prospective target for future
development.

The Directors remain committed to evaluating the potential of Ingomar Dome.
However, the Company's primary focus remains on completing the development of
Rudyard with a clearly defined path to commercial helium production and
positive cash-flow to underpin shareholder value creation.

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation, and the Directors of the Company are responsible for
the release of this announcement.

(1) Pre-tax cash flow is defined as revenue generated from sales at a helium
price of $500/Mcf, before deduction of OPEX, tax and royalty.

 

Enquiries

Helix Exploration

 Bo Sears       via Camarco
 David Minchin  info@helixexploration.com (mailto:info@helixexploration.com)

Cairn - Nominated Adviser

 Liam Murray          +44 (0)20 7213 0880
 Ludovico Lazzaretti
 James Western

 

Hannam & Partners - Joint Broker

 Neil Passmore                    +44 (0)20 7907 8502
 Leif Powis

 Tavira Securities - Joint Broker

                                           +44 (0)20 7100 5100

 Chris Kipling

 Oliver Stansfield

 Jonathan Evans

Camarco - Financial PR

 Emily Hall     +44 (0)20 3757 4980
 Tilly Butcher  helixexploration@camarco.co.uk (mailto:helixexploration@camarco.co.uk)

 Billy Clegg

 

Notes to Editors

Helix Exploration is a helium exploration company focused on the exploration
and development of helium deposits within the 'Montana Helium Fairway'.
Founded by industry experts with extensive experience of helium systems in the
US, the Company listed in April 2024 raising £7.5 million from an offer book
of over £22 million.

The Company has drilled two wells on two assets in 2024. Darwin #1 well at
Rudyard Project tested 236ft in the Souris and Red River formations, flowing
2,750 Mcf/day at 1.1% helium. Rudyard field can support multiple production
wells and has potential to generate net revenue of $115 - $220 million over a
12 - 14 year life of field.

Clink #1 well at Ingomar Dome Project recovered gas samples from the Flathead
Formation assayed at 55.2% Hydrogen in gas sample isolated from drilling mud
and 2.5% helium in gas sample recovered from the reservoir. Gas samples
demonstrate helium and hydrogen potential with additional stimulation required
to potentially generate commercial flow rates in Flathead and Charles
formations.

Helix Exploration is focused on early production at the Rudyard Projects,
taking advantage of existing infrastructure and low-cost processing to target
first gas production in 2025. Helix is committed to open and transparent
communication with investors and the wider market as the project progresses
through development into production.

The Company's Admission Document, and other information required pursuant to
AIM Rule 26, is available on the Company's website
at https://www.helixexploration.com/ (https://www.helixexploration.com/) .

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

 

 

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