REG - Helix Exploration - ANNUAL REPORT AND FINANCIAL STATEMENTS

Helix ExplorationAnnouncement

17/02/2025 07:00

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RNS Number : 3253X  Helix Exploration PLC  17 February 2025

17 February 2025

 

Helix Exploration PLC

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

 

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

 

Helix Exploration, the helium exploration and development company with
near-term production assets within the Montana Helium Fairway, is pleased to
announce its audited Annual Report and Financial Statements for the year ended
30 September 2024 ("Annual Report") which have been sent to shareholders and
published on the Company's website at:

 

https://www.helixexploration.com/investors/company-documents/
(https://www.helixexploration.com/investors/company-documents/)

 

HIGHLIGHTS

 

·    April 2024, the Group successfully listed on the AIM market of the
London Stock Exchange, completing an oversubscribed placing that raised £7.5
million during its IPO.

·    June 2024, the Group acquired the Rudyard Project for $250,000 paid
mostly in shares, purchasing 5,600 acres located within a previously
identified helium-rich structure in Hill County, Montana

·    August 2024, commencement of drilling at Clink #1, the first of two
wells drilled by the Group in 2024, which identified significant helium and
hydrogen within the Ingomar Dome

·    The Group held cash and cash equivalents of £4.96 million as at 30
September 2024.  The Group remains well-funded to bring Rudyard into
production following £5 million raised in January 2025.

 

Since listing, Helix has delivered an aggressive exploration and drilling
programme with two wells drilled and tested in the first 10 months as a public
company. These wells have delivered positive results:

 

·    Darwin #1 proved an economic helium discovery on the Rudyard Project

·    Clink #1 identified both high-grade helium and hydrogen within the
Ingomar Dome

 

Helix is focused on fast-tracking the development of the Rudyard Project,
targeting first production and positive cash-flow in 2025.

 

Commenting on the outlook for the business, Bo Sears, Chief Executive Officer,
said:

 

"Since our IPO in April 2024, Helix has made tremendous strides in executing
our vision and delivering value to our shareholders. In just ten months, we
have demonstrated our ability to overcome challenges, capitalize on
opportunities, and establish ourselves as a leader in helium exploration.

 

"Montana offers incredible potential, its business-friendly environment,
hardworking people, and commitment to innovation align perfectly with our
mission. We are grateful to our vendors, engineers, and partners who help
drive our success every day.

 

"As we move into 2025 and beyond, we are not slowing down. Helix Exploration
is committed to pushing boundaries, seizing opportunities, and delivering
results. We encourage our shareholders to stay tuned as there are exciting
times ahead."

 

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.

 

Chairman's Statement

 

I am pleased to present the consolidated annual financial results for Helix
Exploration Plc (the "Company" or "Helix ") and all of its subsidiaries
collectively referred to as (the "Group") for the period ended 30 September
2024.

 

The period under review has been a transformational period for the Group.  On
a corporate level, Helix was successfully admitted to the AIM segment of the
London Stock Exchange successfully completing an oversubscribed placing to
raise £7.5 million on IPO in April 2024.  Since then, the share price has
performed extremely well in a difficult economic environment, and the team has
continued to deliver value to shareholders through hitting a number of key
milestones.

 

On the M&A front the Group completed the acquisition of the Rudyard
Project in June 2024, paying $250,000 for 5,600 acres within a previously
tested and identified helium structure in the Rudyard area of Hill County,
Montana, which has previously tested helium at significant flow rates.

 

On the operational front, Helix has delivered an aggressive exploration
programme with two wells drilled and tested in the 8 months since listing.
These wells have delivered exceptional results, with Clink #1 identifying both
high-grade helium and hydrogen within the Ingomar Dome while Darwin #1 proved
an economic helium discovery on the Rudyard Project.

 

Post period, the Group is now focused on fast-tracking the development of the
Rudyard Project, targeting first production in Q2 2025.  Rudyard offers
excellent economics, taking advantage of existing infrastructure to generate
net revenue of $115 - $220m over a 12.5-14 year life of field.  The project
has potential to generate peak sustained post-tax profit of $15 - $25m per
year, giving Helix the freedom to pursue exploration and further M&A
targets within the resource rich Montana and beyond, while self-financing
development and growing Helix into a strategic helium producer for the USA
market.

 

Rudyard continues to exceed expectations with the calculation of a reserve 355
million cubic feet of recoverable helium, representing economically
recoverable helium in place.  Rudyard has a further 280 million cubic feet of
recoverable helium remaining as contingent resources in the southern end of
the Rudyard domal anticline, representing global reserves plus resources of
635 million cubic feet of helium and demonstrating potential upside that could
be achieved by a successful extended well test in the southern end of the
dome.

 

Helix has already begun executing the development plan, with the acquisition
of a Xebec PSA processing plant for only $500,000 - or roughly 10% the cost of
a new plant - saving capital while also allowing the Group to accelerate
timeline to production. The Group continues to be well funded through the
recent completion of a £5m placement providing sufficient capital to bring
Rudyard into production.

 

I would like to take this opportunity to thank the Board, the CEO and
consultants for all their efforts and continued dedication in what has been an
incredibly busy period for the Group.  I would also like to thank the State
of Montana and landowners for their continued support which has enabled the
Group to advance its operations at such a dramatic pace.  We look forward to
continuing our work with them in the year ahead, as we continue to grow a
disruptive helium and hydrogen company to supply the US market and beyond
while creating significant value for long-term shareholders.

 

David Minchin

Executive Chairman

 

CEO Statement

 

Since our IPO in April 2024, Helix has made tremendous strides in executing
our vision and delivering value to our shareholders. In just ten months, we
have demonstrated our ability to overcome challenges, capitalize on
opportunities, and establish ourselves as a leader in helium exploration.

 

Our journey began with the drilling of the Clink #1 well in Rosebud County,
where we encountered sloughing shales that tested our resolve. Thanks to the
expertise and perseverance of our drilling team and consulting engineers at
Petroleum Consultants LLC, we successfully completed the well. Now, we eagerly
anticipate re-entering Clink #1 in the coming weeks to test the Charles
formation, which showed the highest helium readings in our mud system during
drilling.

 

Following Clink #1, we drilled the Darwin #1 well in Hill County, Montana-a
turning point for Helix. Darwin #1 proved to be a commercial success, far
exceeding our expectations in both flow rates and the scale of the structure.
This discovery significantly expanded our helium play, enabling us to develop
a project capable of feeding multiple wells into a helium processing plant.
The Rudyard Field is emerging as a world-class primary helium exploration
play, and we are excited about its potential, particularly following the
positive results from Darwin #1. As a result, we are planning to drill at
least two additional wells in the field as part of our wider 2025 drilling
programme.

 

Simultaneously, we are making significant progress on the infrastructure
necessary to support our production. We acquired a helium processing plant at
a tremendous value and are currently undergoing refurbishment work led by
Wikota Design, whose engineering expertise has been instrumental in bringing
the facility back to full functionality. We anticipate moving the plant to
Rudyard by the end of summer 2025, a critical step toward establishing Helix
as a leading helium producer within the US.

 

Looking ahead, we remain laser-focused on value creation. We are not an
organisation that chases marginal assets, we will only pursue projects that
have tremendous merit and the potential to create long-term value. Our
strategic approach and disciplined execution will make Helix the first helium
producer in the State of Montana, a milestone we are extremely proud of.

 

Montana offers incredible potential, its business-friendly environment,
hardworking people, and commitment to innovation align perfectly with our
mission. We are grateful to our vendors, engineers, and partners who help
drive our success every day.

 

As we move into 2025 and beyond, we are not slowing down. Helix Exploration is
committed to pushing boundaries, seizing opportunities, and delivering
results. We encourage our shareholders to stay tuned as there are exciting
times ahead.

 

Bo Sears

Chief Executive Officer

 

Consolidated Statement of Profit & Loss and Other Comprehensive Income

For the Period Ended 30 September 2024

 

                                                                                  Audited

Period ended 30 September 2024
                                                                            Note  £'000
 Continuing Operations
 Revenue from continuing operations                                               -

 Costs associated with listing                                                    (428)
 Foreign exchange / (loss)                                                        (186)
 Administrative expenses                                                          (1,551)

 Operating loss                                                                   (2,165)
 Loss before taxation                                                             (2,165)

 Taxation on loss or ordinary activities                                          -

 Loss for the period from continuing operations                                   (2,165)

 Items that may be reclassified to profit or loss
 Exchange differences on translation of foreign operations                        (7)

 Total comprehensive loss for the period attributable to shareholders from        (2,172)
 continuing operations

 Basic & dilutive earnings per share - pence                                3                                      (3.30)

 

 

 

Consolidated Statement of Financial Position

As at 30 September 2024

                                   Audited

 As at 30 September

2024
                                   £'000
 NON-CURRENT ASSETS
 Intangible assets                 4,087
 TOTAL NON-CURRENT ASSETS          4,087

 CURRENT ASSETS
 Cash and cash equivalents         4,960
 Trade and other receivables       103
 TOTAL CURRENT ASSETS              5,063
 TOTAL ASSETS                      9,150

 CURRENT LIABILITIES
 Trade and other payables          465
 TOTAL CURRENT LIABILITIES         465
 TOTAL LIABILITIES                 465
 NET ASSETS                        8,685

 EQUITY
 Share capital                     1,236
 Share premium                     8,734
 Share based payments reserve      887
 Foreign exchange reserve          (7)
 Retained earnings                 (2,165)
 TOTAL EQUITY                      8,685

 

 

Consolidated Statement of Changes in Equity

As at 30 September 2024

 

                                           Share capital  Share premium  Share based        Foreign            Retained earnings  Total equity

                                                                         payments reserve   exchange reserve
                                           £'000          £'000          £'000              £'000              £'000              £'000
 Loss for period                           -              -              -                  -                  (2,165)            (2,165)
 Other comprehensive income                -              -              -                  (7)                -                  (7)
 Total comprehensive loss for period       -              -              -                  (7)                (2,165)            (2,172)

 Transactions with owners in own capacity
 Shares issued on incorporation            55             -              -                  -                  -                  55
 Ordinary Shares issued in the year        1,179          9,806          -                  -                  -                  10,985
 Exercise of warrants                      2              20             -                  -                  -                  22
 Share issue costs                         -              (1,092)        -                  -                  -                  (1,092)
 Advisor warrants issued                   -              -              254                -                  -                  254
 Employee options issued                   -              -              633                -                  -                  633
 Transactions with owners in own capacity  1,236          8,734          887                -                  -                  10,857
 Balance at 30 September 2024              1,236          8,734          887                (7)                (2,165)            8,685

 

 

Consolidated Statement of Cashflows

For the Period Ended 30 September 2024

                                                           Period ended

30 September 2024
                                                           £'000
 Cash flow from operating activities
  Loss for the financial year                              (2,165)
 Adjustments for:
 Share based payments                                      887
 Settlement of fees through issue of equity                432
 Foreign exchange movements                                78
 Changes in working capital:
 (Increase) in trade and other receivables                 (103)
 Increase in trade and other payables                      465
 Net cash outflow from operating activities                (401)

 Cash flows from investing activities
 Investment in intangible assets (exploration assets)      (1,933)
 Net cash flow from investing activities                   (1,933)

 Cash flows from financing activities
 Proceeds from Issue of Shares                             8,383
 Share Issue Costs                                         (262)
 Capitalised indirect share issue costs                    (755)
 Net cash flow from financing activities                   7,366

 Net increase in cash and cash equivalents                 5,032
 Cash and cash equivalents at beginning of the period      -
 Foreign exchange effect on cash balance                   (72)
 Cash and cash equivalents at end of the period            4,960

 

 

 

 

Notes:

 

 

1.         General Information

Helix Exploration Plc ("the Company") was incorporated on 23 September 2023 in
England and Wales with Registered Number 15160134 under the Companies Act
2006.

The address of its registered office and principal place of business is
Eccleston Yards, 25 Eccleston Place, London SW1W 9NF, United Kingdom.

The principal activity of the Company and its subsidiaries collectively
referred to as "the Group" is the development and exploitation of small-scale
gas leases which are held via its 100 per cent. interest in Hereford
Resources, LLC ("Hereford") in the United States of America state of Montana.
The acquisition of Hereford was completed alongside the admission to AIM on 9
April 2024.

The Group financial statements have been prepared and approved by the
Directors in accordance with International Financial Reporting Standards
(IFRS), International standards and Interpretations (collectively IFRSs)
issued by the International Accounting Standards Boards (IASB) and with those
parts of the Companies Act 2006 applicable to those companies reporting under
IFRS.

The financial information set out above does not constitute the Group's
statutory accounts for the year ended 30 September 2024 within the meaning of
Section 434 of the Companies Act 2006 but is derived from those accounts.

2.         Accounting policies

The principal accounting policies applied in preparation of these financial
statements are set out in the statutory accounts. These policies have been
consistently applied unless otherwise stated.

2.1          Basis of preparation

The consolidated financial statements ("financial statements") for the period
ended 30 September 2024 have been prepared by Helix Exploration Plc in
accordance with UK-adopted International Accounting Standards ("IAS UK"). The
financial statements have also been prepared under the historical cost
convention, as modified by the revaluation of financial assets at fair value
through profit or loss.

The functional currency for each entity in the Group is determined as the
currency of the primary economic environment in which it operates.  The
functional currency of the Company is Pounds Sterling (£).

The functional currency of its subsidiary is the United States Dollar ($). For
all subsidiaries these are the currencies that mainly influence labour,
material and other costs of providing services.

The Group has chosen to present its consolidated financial statements in
Pounds Sterling (£), as this is the currency in which finance was raised.
Foreign operations are included.

The accounting period for the Group covers the period from incorporation to 30
September 2024 and hence no comparatives are presented. The financial
statements are presented in Pounds Sterling and rounded to the nearest
thousand (£'000).

 

2.2          Going concern

The Directors have prepared financial forecasts to estimate the likely cash
requirements of the Group over the 12 months from sign off of the annual
report. Given its stage of development in preparing these financial forecasts,
the Directors have made certain assumptions with regards to the timing and
amount of future expenditure over which they have control. The Directors have
considered the sensitivity of the financial forecasts to changes in key
assumptions, including, among others, exchange rate fluctuations and
unforeseen circumstances relating to exploration activities.

Due to the Group announcing a commercial discovery at its Rudyard project it
fully intends to transition into the production phase on this project and the
Company has recently closed a fundraising round to support capital outlays.
With the planned transition to production the Group has reasonable assurance
that they will be revenue generative in the 2025 calendar period supporting
the liquidity of the Group further however due to contracts not yet being
entered into any revenue has been excluded when modelling for going concern
purposes.

The Directors note that within the audit report the Auditors have included a
material uncertainty relating to going concern, indicating that a material
uncertainty exists that may cast significant doubt on the company's ability to
continue as a going concern, which is common for exploration companies. The
Directors are comfortable with the inclusion of this statement in the annual
report.

Subsequent to period end in January 2025 the Group closed a fundraising round
raising £5 million through the issue of equity in Helix Exploration Plc. This
factor combined with an assessment of forecasts, current cash resources,
including the sensitivity of key inputs, the Directors consider that the Group
will have adequate financial resources to continue in operational existence
for the foreseeable future (being a period of at least 12 months from the date
of this report) and, for this reason, the financial statements have been
prepared on a going concern basis. The full independent Auditors report can be
found within the Company's statutory accounts.

3.         Earnings per share

The calculation of the basic and diluted earnings per share is calculated by
dividing the profit or loss for the period by the weighted average number of
ordinary shares in issue during the period.

                                                                             Period ended

                                                                             30 September 2024
 Loss attributable to shareholders of Helix Exploration Plc - £'000          (2,165)
 Weighted number of ordinary shares in issue                                 65,669,651
 Basic & dilutive earnings per share from continuing operations - pence      (3.30)

 

As the Group is in a loss making position there is no difference between the
diluted loss per share and the basic loss per share presented. Share options
and warrants could potentially dilute basic earnings per share in the future
but were not included in the calculation of diluted earnings per share as they
are anti-dilutive for the period presented.

 

4.         Events subsequent to period end

Acquisition of Helium processing plant

On 30 December 2025, Helix announced the acquisition of a helium Pressure
Swing Adsorption ("PSA") processing plant for a price of $500,000 USD. The
plant allows the Company to make a significant step towards its production
targets.

Equity fundraise and placing

On 23 January 2025, Helix completed an equity fundraise raising £5 million
through the issue of 33,333,333 ordinary shares ("placing shares") at a
placing price of £0.15.  The placing shares were issued on 29 January 2025
and the total issued share capital of the Company immediately after the issue
was 156,970,000.

 

 

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