REG - Helix Exploration - Acquisition of Helium Processing Plant

Helix ExplorationAnnouncement

30/12/2024 07:00

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RNS Number : 5690R  Helix Exploration PLC  30 December 2024

 

 

30 December 2024

 

Helix Exploration PLC

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

 

Acquisition of Helium Processing Plant

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the Montana Helium Fairway, is pleased to announce that
it has entered into a Letter of Intent ("LOI") and made a $100,000 downpayment
for the acquisition of a helium Pressure Swing Adsorption ("PSA") processing
plant. This acquisition marks an important step in the Company's journey to
becoming a significant helium producer in Montana.  The PSA processing plant
is planned to be initially installed at the Company's Rudyard Project.

 

 

Highlights

·      Exceptional Value: Acquisition of a high-performing Xebec PSA
plant and equipment for just $500,000 (£397,500) made possible through
management's long-term industry relationships.

·      Proven Capability: The plant previously produced 48,000Mcf/yr of
high grade helium, with 98.5% uptime underscoring its reliability.

·      Accelerated Timeline: Reducing lead time significantly compared
to building a new plant.

·      Strategic Partnership: Collaboration with Wikota Design &
Construction for refurbishment and installation at the Rudyard Project.

 

The acquisition of the PSA plant enables Helix to reduce capital costs,
accelerate production timeline, and establish its position as a leading helium
producer from Rudyard project in Montana in 2025.

 

 

Bo Sears, CEO of Helix Exploration, said:

 

"We are delighted to announce the acquisition of a proven helium processing
plant, a game-changing development for Helix Exploration. Securing this plant
at a fraction of the cost of a new facility represents both a strategic and
financial success for the Company. With the plant's demonstrated ability to
produce high grade helium and its rapid deployment potential, we can achieve
production both faster and more cost effectively than fabricating a new
facility from scratch. This acquisition underscores our commitment to
delivering shareholder value by fast-tracking our Rudyard Project into
production while maintaining financial discipline"

 

 

William Pankhurst, CEO of Wikota Design & Construction, said:

 

"We are excited to collaborate with Helix Exploration on the development of
their helium processing plants. With our team's deep expertise in helium, RNG,
CO2, and natural gas processing, we are confident that Helix will successfully
meet its helium production targets in Montana and beyond. Wikota is committed
to helping companies like Helix Exploration minimize capital costs and project
timelines, providing a more efficient solution compared to larger EPCs."

 

 

Background

 

Helix Exploration has acquired a high-quality Xebec PSA plant and equipment
for $500,000 (£397,500). Manufactured by Xebec, the plant consistently
produced 48,000 Mcf per year of high grade helium and was in continuous
operation from 2015 to 2022 with average 98.5% run-time annually.

 

The acquisition was made possible through the Company's industry
relationships, securing a strategic asset at a highly competitive price. By
leveraging this opportunity, Helix has achieved substantial cost savings and
eliminated the long lead times associated with constructing a new facility.
The refurbishment and installation at Rudyard will be managed by Wikota Design
& Construction, a trusted partner with extensive experience in gas
processing and industrial infrastructure.

 

This acquisition signifies a transformation for Helix Exploration from an
exploration-focused company to a development-stage enterprise with a clear
path to production.  Acquisition and refurbishment costs are fully funded,
allowing the Company to target first production from Rudyard earlier in 2025
while reinforcing the Company's commitment to operational efficiency and
shareholder value creation.

 

Helix will continue to update stakeholders as the refurbishment progresses and
will provide further details on installation and commissioning milestones in
the coming weeks.

 

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

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 to become one of the most successful AIM IPOs of 2024.

 

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 on structure with each well having the potential to produce pre-tax
cashflow of circa $4.0 million per year and drain a large area over a
sustained period.

 

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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