REG - Helix Exploration - Commencement of Drilling at Linda #1

Helix ExplorationAnnouncement

10/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250410:nRSJ4100Ea&default-theme=true

RNS Number : 4100E  Helix Exploration PLC  10 April 2025

 10 April 2025

 

Helix Exploration PLC

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

Commencement of Drilling at Linda #1

Helix Exploration, the helium exploration and development company with
near-term production assets within the 'Montana Helium Fairway', is pleased to
announce the commencement of drilling at the Linda #1 well in Rudyard Project,
Montana.

Highlights:

·    Commencement of drilling at Linda #1, the second company development
well at the Rudyard Field Project

·    Commercial helium gas previously encountered over 276ft in Darwin #1
Souris and Red River formations

·    Linda #1 will also drill through Cambrian strata to examine potential
for previously untested helium and hydrogen potential in the Flathead
Sandstone Formation

·    LOI signed April 9, 2025 for acquisition of 20-acre site for plant
construction, conveniently located for infrastructure requirements and
production wellheads

·    One additional development well location has been surveyed.  Another
development well location to be surveyed by end of April 2025

Bo Sears, CEO of Helix Exploration, commented:

"On the one-year anniversary of our IPO, Helix is entering a new phase of
growth: Drilling is underway at the Linda #1 well, joining the existing
production wells at Darwin #1 and the recently acquired Weil #1. We have also
signed a letter of intent to secure a 20-acre plant site, which would allow us
to begin construction and installation of the PSA plant and membrane package
ahead of first production in summer 2025."

"The progress from first exploration well to third production well along with
a clear sight to positive cashflow in only one year has been phenomenal.  The
groundwork we've laid over the past 12 months will drive tangible forward
momentum. We're excited by what's ahead and look forward to updating the
market as further milestones are delivered."

Linda #1 Drilling - Third Production Well

Helix has commenced drilling operations at Linda #1 well, strategically
located roughly 1-mile south of the Company's discovery well at Darwin #1 and
inside the larger Rudyard Field structure.

Darwin #1, completed in November of 2024, flowed 2,750 Mcf/d of raw gas on a
40/64" choke. Extended flow testing determined an absolute open flow of over
4,500 Mcf/d with an excellent 1.1% Helium grade in a predominantly nitrogen
gas mix.

Linda #1 will be the Company's third production well, joining Darwin #1 and
the recently acquired Weil #1 well (announced 12 March, completed 19 March
2025), which tested 0.9% - 1.3% helium with a flow rate of 2,500mcf/d.  It is
anticipated that at conservative sustained flow rates of 2,000Mcf/day raw gas
per well, 1.1% helium grade, and a helium sales price of $500/Mcf, production
from the three production wells may generate pre-tax revenue of circa
$12,000,000 per year.

Linda #1 will be testing known helium reservoirs in the Souris and Red River
formations.  These reservoirs have previously shown significant gas
accumulation over sizable intervals, with 276ft of reservoir tested in two
perforations at Darwin #1 from 5,000ft to 5,100ft and 5,140ft to 5,276ft.
The well will also be extended to test potential for helium and hydrogen
within the Cambrian Flathead and Precambrian strata.  This formation showed
both high grade helium and hydrogen at Ingomar Dome but has never been drilled
in the Rudyard area.  As Flathead reservoir conditions are unknown in the
area any gas identified in this formation would be an upside for the project.

Helix has commenced surveying of well sites for Production Well #4 and #5 to
the south of Linda #1.  Additional production wells will be self-financed
through cashflow from the Rudyard plant.

Figure 1 Map of Rudyard production wells and plant site

Rudyard Plant Site

The Company has executed a letter of intent ("LOI") to purchase land totalling
20 acres for its Rudyard helium processing plant.  The site is advantageously
situated to tie-in to existing infrastructure, reducing the time and cost to
bring the plant into operation, while also allowing space for expansion as
production from the Rudyard project increases.  The Company has 30 days to
complete title checks on the landholding after which the LOI becomes
binding.

Construction of the Rudyard processing plant is progressing as planned, with
the Pressure Swing Adsorption ("PSA") module re-fit ongoing and the
fabrication of the Membrane Package commenced. Upon completion, the modules
will be transported to the Rudyard site for final installation and connected
to the three production wellheads. This modular approach enhances project
flexibility, allowing additional membranes to be installed as further
production wells are bought on-line throughout 2025-26 and maintaining the
same feed volume to the PSA module while increasing helium output.

The Company remains on schedule with groundwork on plant footings to commence
in late May and first helium production during summer 2025.

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

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 Financial  - 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

 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 276ft 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.

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

"Our approach is simple: build scale efficiently, develop resources
strategically, and deliver near-term cash flow." CEO - Bo Sears

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.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLBKLLBEZLFBBF