REG - Helix Exploration - Admission to Trading on AIM

Helix ExplorationAnnouncement

09/04/2024 07:15

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RNS Number : 7652J  Helix Exploration PLC  09 April 2024

9 April 2024

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE  OR  IN  PART,
DIRECTLY OR INDIRECTLY,  IN OR  INTO  THE UNITED STATES OF AMERICA,
AUSTRALIA, NEW ZEALAND, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY
OTHER JURISDICTION WHERE SUCH RELEASE,  PUBLICATION  OR  DISTRIBUTION WOULD
BE UNLAWFUL.

 

 

Helix Exploration PLC

 

("Helix Exploration" or the "Company")

 

Admission to trading on AIM

& First Day of Dealings

 

Helix Exploration, a helium exploration company with operations in Montana,
USA, is pleased to announce admission of its Ordinary Shares to trading on the
AIM market of the London Stock Exchange ("AIM"). Admission will take place and
dealings commence at 8.00 a.m. today under the ticker HEX and the ISIN
GB00BPK66X70.

 

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

 

Admission Highlights

   •     Oversubscribed placing with book of demand over £22 million to raise gross
         proceeds of £7.5 million
 •       Market capitalisation on Admission of £12.2 million
 •       Placing price per share of 10p
 •       Net proceeds of the fundraise will be used to fund scoping study and appraisal
         drilling at Ingomar project in Montana

 

Project Highlights

   •     Large Scale: Anticlinal closure mapped at surface over 16,512 acres with P50
         gross unrisked prospective helium resources of 2.3 billion cubic feet ("Bcf")
 •       Proven Gas: Historic drilling has identified gas in all target horizons in
         stacked reservoir system
 •       Right Location: Helium identified at surface, on Montana Helium Fairway which
         is host to multiple helium discoveries and production
 •       Veteran Management: Experienced team including CEO Bo Sears with track record
         in helium exploration, development and production experience
 •       Global Demand: Helium in unprecedented short supply with price increasing at
         20% CAGR over the last decade

 

Details

 

Helix is focused on the exploration and development of low risk, large scale
helium deposits within the 'Montana Helium Fairway'. The Company's assets
comprise of 52 leases over the Ingomar Dome Project, with a large closure of
16,512 acres, a P50 unrisked prospective helium resource of 2.3Bcf and an
upside estimate of 6.7 Bcf. Historic drilling and/or testing has identified
gas in all target reservoir horizons.

 

Large Scale

Ingomar sits within the "Montana Helium Fairway", which extends from Wyoming
USA to Saskatchewan Canada and hosts several known helium occurrences
including production in Canada from the Weil Group and North American
Helium.  Helium is generated in ancient crust and migrates along major
structures.

 

Ingomar represents a large anticlinal closure of 16,512 acres mapped at
surface, in seismic and in drilling, located on the upthrown side of the
deep-seated Sumatra Thrust.

 

Proven Gas

Historic drilling and/or testing has identified gas in all target reservoir
horizons including:

o  195ft in Amsden Formation in Hillison-1 wellbore

o  145 - 175ft in Charles Formation in Froze To Death and Treasure 18-1
wellbores

o  10 - 26ft in Flathead Formation in Treasure 18-1 wellbore

 

Gas samples were not assayed for helium but have been identified to contain
high-nitrogen, which is a key exploration indicator for helium within the
"Montana Helium Fairway". Ryder Scott analysed helium concentrations from
analogous wells and probabilistically modelled grade range as 0.9% - 2.2% with
a P50 grade of 1.52% Helium.

 

Presence of helium is supported by gas-in-soil analysis over the Ingomar Dome
which identified a high-helium anomaly close to the Hillison-1 wellhead.
Anonymously high helium concentrations in the soil around the Hillison-1
wellbore provide evidence that there could be helium in the reservoirs in the
subsurface.

 

Low-cost exploration

The site Ingomar Dome is ready to drill with no further geological work
required ahead of drilling. The target depth of 8,000ft is not considered deep
for North American drilling and hosts a competitive drilling market with spare
rig capacity and "on-time" service delivery.  Helix is fully funded from
proceeds of the IPO to drill, log and test appraisal well using local
suppliers based out of Montana and Wyoming.

 

Following appraisal drilling, Helix will fast-track development of Ingomar
Dome based on the experience of CEO Bo Sears' discovery and development of
helium from Mankota Project in Canada.  Management estimate approximately
US$12.5-15.0 million to build a modular processing plant delivering ~55,500
Mcf helium per year with a construction timeline of approximately twelve
months from appraisal to first-gas production.

 

Growing helium market demand

Helium in unprecedented short supply with Chinese import prices rising to
US$623/mcf in February 2023 and US Defence Logistics Agency bulk pricing over
US$1,000/Mcf.  There is no end in sight for the current global shortage and
existing production is currently declining at 2-3% per annum, compared to the
demand growth at CAGR 6%.

 

Key drivers include semiconductor chips, flat panel displays and fibre optic
manufacturing. The CHIPS Act in the USA, which includes US$39 billion in tax
benefits and other incentives to encourage American companies to build new
chip manufacturing plants in the US, is expected to further increase the
domestic demand for helium in the USA. New helium production is required to
balance the market and ensure security of supply to the USA.  Montana is
ideally positioned to supply directly to North America end users.

 

Strategy

Following admission on AIM, Helix's strategic focus will be on appraisal and
early production at  Ingomar Project.  An aggressive development timeline
will see appraisal drilling targeted for Q3 2024 and first helium production
targeted for Q4 2025. Helix is committed to open and transparent communication
with investors and the wider market as the project progresses through
development.

 

The Company will leverage successful development work at the Ingomar Dome to
grow a pipeline of low risk, near production helium assets by utilising the
team's unique network and experience.

 

Bo Sears, CEO of Helix Exploration, said:

 

"After 24 years in helium exploration and development it has become clear to
me that new, large-scale, primary helium projects are required to satisfy
growing demand. These projects are best discovered by teams with a deep
understanding of helium systems.

 

"Ingomar Dome is a large closure of 16,512 acres with P50 Gross Unrisked
Prospective Resources of 2.3Bcf. The project benefits from historical drilling
which identified gas in multiple target reservoir horizons in a stacked
closure.

 

"Helix Exploration offers investors an opportunity to invest in a proven
management team operating in an area of known helium occurrences in the United
States."

 

David Minchin, Executive Chairman of Helix Exploration, said:

 

"We have chosen to list in London because we believe it is the pre-eminent
market for growth resource companies with a deep pool of investors, talent and
very high standards of governance. London remains a world leading capital
market for small-cap companies.

 

"With helium in unprecedented short supply with Chinese import price rising to
US$623/mcf in February 2023 and US Defence Logistics Agency bulk pricing over
US$1,000/Mcf, we think now is the right time to invest in the identification
of new sources of primary helium supply.

 

"I am delighted to be part of bringing Helix Exploration to the London market
with our aim of actively pursuing the exploration, commercial development and
monetisation of a non-hydrocarbon associated helium rich gas structure in the
Ingomar Dome located in central Montana, USA."

 

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
 Andy Crispin
 Spencer Mignot

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

 

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 low risk, large scale helium deposits within the "Montana
Helium Fairway". Founded by industry experts with extensive experience of
helium systems in the US, the Company's assets comprise of 52 leases over the
Ingomar Dome; a large closure of 16,512 acres with P50 unrisked prospective
helium resource of 2.3Bcf and upside of 6.7 billion cubic feet. Historic
drilling and/or testing has identified gas in all target reservoir horizons.

 

Helix Exploration will focus on appraisal and early production at the Montana
Ingomar Dome Project.  An aggressive development timeline will see appraisal
drilling targeted for Q3 2024 and first helium production targeted for Q4
2025.  Helix is committed to open and transparent communication with
investors and the wider market as the project progresses through development.

 

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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