REG - Helix Exploration - Completion of Drilling at Clink #1

Helix ExplorationAnnouncement

28/08/2024 07:00

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RNS Number : 8966B  Helix Exploration PLC  28 August 2024

28 August 2024

Helix Exploration PLC

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

 

Completion of Drilling at Clink #1

 

Helium Shows and Hydrogen Shows in Cambrian Strata

 

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', is pleased to report the
completion of drilling activities on the Clink #1 well at the Ingomar Dome
Project.

 

Highlights

·    Completion of drilling at Clink #1 to Target Depth ("TD") of 8,030ft
(~2,450m), delivered ahead of time and below budget.

·   Elevated helium encountered in drilling muds throughout the
sedimentary column demonstrates presence of helium within all target
horizons.

·    Significantly elevated hydrogen in drilling muds of up to 103,000ppm
(10.3% H(2))  demonstrates presence of a hydrogen system within Cambrian
strata.

·    Wireline logging and appraisal via extended flow testing will
commence shortly to enable the Company to assess the helium and hydrogen
concentrations.

 

 

Bo Sears, CEO of Helix Exploration, said:

 

"We are delighted to report the safe and successful completion of the drilling
of our maiden exploration well at Clink #1 delivered ahead of time and below
budget.  Drill operations took 11 days from spud to Target Depth, completing
well ahead of the 2-3 week guidance provided.

 

"We are highly encouraged by anomalous helium identified in all target strata,
indicating that we have elevated levels of helium throughout the sedimentary
column.  Additionally, the discovery of anomalously high hydrogen shows
within Cambrian strata is a welcome development.  A number of highly elevated
readings up to 103,000ppm (10.3%) suggest a significant level of hydrogen in
the lower part of the system.  This will need to be fully investigated before
any conclusions on economic potential can be drawn.

 

"We are now moving directly onto preparing the well for wireline logging and
appraisal via extended flow testing and will keep the market updated as we
learn more about the helium and hydrogen system identified in mud-shows at the
Ingomar Dome Project."

 

Background

 

The Clink #1 well reached Target Depth ("TD") of 8,030ft (~2,450m) at 11:15
MST on 23 August 2024.  Rods have been pulled from the hole and a wiper trip
is planned to condition the hole in preparation for wireline logging.

 

Elevated helium readings were encountered throughout the Cambrian strata from
6,815ft (2,075m) to TD, which includes the Clink #1 primary target - the
Flathead formation.  Following on from previously announced helium gas shows
in the Amsden and Charles formations (19 August 2024), the Company has now
identified elevated helium shows in all primary and secondary target horizons.

 

The Clink #1 well also encountered significantly elevated hydrogen within
Cambrian strata.  Several consistent hydrogen anomalies were recorded in
drilling mud, with peak readings up to 103,000ppm (10.3%) hydrogen.  The
discovery of significant hydrogen shows within the Cambrian formation will
require further investigation before the potential economic impact can be
assessed.

 

Geological hydrogen, also known as natural hydrogen, is a form of hydrogen
that is produced through natural geochemical processes within the Earth's
crust. Unlike hydrogen produced industrially, which involves energy-intensive
methods and significant carbon emissions, geological hydrogen is believed to
be generated when formation water reacts with mafic minerals and/or via
radiolysis in continental crust. This naturally occurring hydrogen has the
potential to be a clean energy source, offering a promising alternative to
fossil fuels.

 

The identification of helium or hydrogen gas-show indicates gas released from
the rock formation during drilling and into the mud system. The presence of a
helium or hydrogen gas-show is a positive indicator for further investigation.

 

The presence of a gas-show alone does not confirm that the helium or hydrogen
can be economically extracted. Further testing and analysis are required to
determine the commercial viability of the system, including wireline logging
to determine formations with free-gas potential and flow testing to determine
grade, flow rate, and production profile.  A discovery may be declared only
after samples of gas have been recovered to surface and flow tested.

 

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
 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 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 gross prospective helium resource of
2.3Bcf and upside of 6.7Bcf. Historic drilling and/or testing has identified
gas in all target reservoir horizons.  The Company's second asset is 5,600
acres in Rudyard, Montana, where a helium discovery at up to 1.3%He has been
made within the closure from historic drilling adjacent to the leases.
Rudyard has P50 gross contingent helium resources of 482,000Mcf in two stacked
reservoirs with a further 112,000Mcf of gross prospective helium resource
within untested horizons.

 

Helix Exploration is focussed on drilling and early production at the Ingomar
Dome and Rudyard Projects.  An aggressive development timeline has seen
drilling commence in Q3 2024, with 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'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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