REG - Helix Exploration - Acidisation of Clink #1 and Operational Update

Helix ExplorationAnnouncement

04/02/2025 07:15

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RNS Number : 7209V  Helix Exploration PLC  04 February 2025

 

 

04 February 2025

 

Helix Exploration PLC

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

 

Acidisation of Clink #1

and

Operational Update

 

Helix Exploration, the helium exploration and development company with
near-term production assets within the Montana Helium Fairway, is pleased to
announce that it will commence re-entry and acidisation of Clink #1, and has
commissioned Petroleum Consultants LLC to oversee contractor services.

 

Highlights:

·      Acidisation of Clink #1 well to commence mid-February 2025

·      Re-entry and acidisation to take circa. 10 days from commencement

·      Acidisation will test capacity to stimulate flow from the Charles
Formation

·      Contractor services to be overseen by Petroleum Consultants LLC

·      Additional production wells being surveyed at Rudyard for
drilling in Q2 2025

 

Bo Sears, CEO of Helix Exploration, commented:

 

"While our recent focus has been on the rapid commercialisation of the Rudyard
Project, we remain committed to the significant potential of Ingomar Dome, and
the promising helium and hydrogen indications seen at Clink #1. Following the
successful closure of our non-discounted placing to raise £5 million, we are
now fully funded to bring Rudyard into production in the coming months, with
excess capital to fund growth projects. This enables us to commence
acidisation at Clink #1, a highly cost-effective method to test the production
potential of the Charles Formation by removing near-wellbore damage caused by
heavy muds. We are looking forward to updating the market in due course."

 

Background

 

Operations are due to commence shortly on the acidisation of the Clink #1 well
to stimulate and flow test the Charles Formation.  The Charles Formation, a
limestone reservoir, is expected to respond well to stimulation with
hydrochloric acid.  The Company is confident in the reservoir properties of
the Charles Formation, based on drill cuttings that demonstrated visible
porosity, gas shows including helium, and pulsed neutron wire-line logs
indicating reservoir quality.

 

Further confidence is derived from the interpretation of pressure build-up
data from our initial flow test attempt in November 2024. Following the
initial swabbing of the Charles perforation interval, a decision was made to
pump into the perforations to confirm the presence of an open flow path,
ensuring no plugged tubing and correct packer depth. The pump-in test
indicated a pressure break at approximately 1,800 psi, equivalent to around
0.8 psi/ft, consistent with the normal fracture gradient. The significant
difference in pressure build-up before and after the pump-in test suggests
that the induced minor fracture created a flow path to virgin reservoir.
However, this was insufficient for sustained flow as the fracture healed
quickly. The subsequent acid treatment is expected to remove drilling fluid
permeability blockages near the wellbore and establish open flow paths.

 

Acidisation of the Charles Formation is expected to commence in mid-February
2025, depending on local weather conditions, with flow rate results available
approximately ten days from the commencement of operations. Results of the
flow testing will be announced alongside assay results of any gas recovered
from the operation.

 

Rudyard

 

Helix management have recently conducted a site visit to Darwin #1 wellhead
and proposed initial plant location.  The visit allowed the Company to
advance discussions with Hill Country Electric regarding power provision, as
well as inspecting pipeline routes from the wellhead to the plant-site.
Helix management have also met with various landowners and service providers
local to the Rudyard area who could expediate development into production.

 

The Company has commenced surveying the location of the next production wells
at Rudyard.  New wells, along with the Darwin #1 well drilled in November
2024, will increase supply of raw helium gas to the processing
plant. Drilling is targeted to commence in early Q2 2025 when warmer
temperatures reduce drilling costs.

 

 

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.

 

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
 Spencer Mignot

 SI Capital - Joint Broker
 Nick Emerson               +44 (0)14 8341 3500
 Renato Rufus

 

OAK Securities - Joint Broker

 Jerry Keen                         +44 (0)20 3973 3678
 Henry Clark

 Tavira Securities - Joint Broker

 Chris Kipling                      +44 (0)20 7100 5100

 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 focussed 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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