REG - Helix Exploration - Flow Test Results at Linda #1

Helix ExplorationAnnouncement

22/05/2025 07:00

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RNS Number : 6894J  Helix Exploration PLC  22 May 2025

 22 May 2025

 

Helix Exploration PLC

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

Flow Test Results 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 results of flow testing at Linda #1 well in Rudyard Project,
Montana.

Highlights:

·      218ft of Linda #1 perforated simultaneously, testing Souris and
Red River reservoir horizons.

·      Flow rates sustained at 3,850 thousand cubic feet per day (Mcf/d)
of raw gas at 40/64" choke which is 40% above the flow rates reported at
Darwin.

·      High grade helium assayed at 1.2% helium with the balance being
primarily nitrogen

·      Linda #1 has capacity to generate pre-tax cashflow of c.USD$4m a
year 1  in line with projections.

Bo Sears, CEO of Helix Exploration, commented:

"The Linda #1 result confirms that the Rudyard Field is not only productive -
it's scalable. With exceptional flow rates, a large structural footprint, and
strong early gas quality, we now have a foundation to build a long-life
domestic helium supply project. We intend to move forward with development
quickly and efficiently.

"As we advance toward first production at the Rudyard Field, Helix continues
to distinguish itself as a nimble, focused helium company positioned to meet
the needs of a market undergoing structural change.  Our near-term
production, strong reservoir performance, and low-cost operating model
position us to fill critical supply gaps at a time when diversified and
reliable sources of helium are increasingly valued. We believe the shifting
dynamics in the global helium supply chain only reinforce the strategic
importance of new North American entrants like Helix, and we are committed to
capitalising on this moment to deliver long-term value to shareholders."

 

Background

Helix has successfully tested target reservoirs at Linda #1 in the Souris and
Red River intervals.  All reservoirs were tested simultaneously in a single
perforation over 218ft from 5,074ft to 5,292ft, including testing potential
fracture porosity observed occurring between the main target reservoirs.

The well flowed immediately after perforation without the need to swab or
stimulate, an indication of good natural reservoir quality and pressure.
Build-up pressure between each flow period was close to initial shut in
pressure indicating good permeability and little, if any, wellbore damage.

Testing demonstrated excellent deliverability, flowing 3,850 Mcf/d of raw gas
on a 40/64" choke or approximately 40% higher flow rate than achieved at
Darwin #1. Extended flow testing determined an absolute open flow of over
4,700 Mcf/d, confirming Linda #1 as a strong producer.

These results expand the Company's view of the Rudyard Field's potential. The
superior performance of Linda #1 is attributed to greater natural fracturing
and porosity.  If flow performance continues to improve towards the south
this suggests a compelling development trend across the structure.

Based on cumulative flow data, lateral extent, and undeveloped drilling
inventory, Helix believes that the Rudyard Field could represent one of the
largest new single field helium discoveries in North America in recent years.

Samples of gas were sent to Isotech Laboratories in Illinois for analysis and
returned 1.2% Helium and 96% Nitrogen with very low levels of Methane and no
water or material CO(2).  The gas mix observed is similar to gas seen at
Darwin #1, indicating a continuity of grade across the Rudyard closure.

At conservative sustained production rate of 2,000 Mcf/day raw gas, 1.2%
helium grade, and a helium sales price of $500/Mcf, production from the Linda
#1 would generate pre-tax cashflow of circa $4,000,000 per year, in line
with  base-case modelling, demonstrating the scalability of production at
Rudyard and robustness of our economic forecast.

The work-over rig and testing equipment have now moved to Weil #1 well
situated circa 1.3 miles NW of Linda #1.  Testing at Weil #1 is expected to
commence shortly with results due to be reported alongside gas sample
laboratory results in early June.

 

Qualified Person Statement

The technical information contained in this disclosure has been read and
approved by James Weaver, P.E., who is a qualified Petroleum Engineer and acts
as the Qualified Person under the AIM Rules - Note for Mining and Oil &
Gas Companies. James Weaver is the Chief Executive Officer for Aeon Petroleum
Consultants Corp. which has been retained by Helix Exploration plc to provide
technical support.

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.

Helix is focused on production at its Rudyard Project in northern Montana,
taking advantage of existing infrastructure and low-cost processing to target
first gas in 2025. The Company has three production wells targeting up to
236ft Helium / Nitrogen gas in the Souris and Red River formations, flowing up
to 3,800 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 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.

 

 

 

 1  Pre-tax cashflow calculated using a conservative sustained production flow
rate of 2,000 Mcf/day raw gas, 1.2% helium grade, and a helium sales price of
$500/Mcf.

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