REG - Helix Exploration - Fundraise, Flow Test Results & Drilling Update

Helix ExplorationAnnouncement

05/06/2025 07:20

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RNS Number : 5864L  Helix Exploration PLC  05 June 2025

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05 June 2025

 

Helix Exploration PLC

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

£4.5m Institutional Fundraising

Flow Test Results at Weil #1

Drilling Programme Update

 

Helix Exploration, the helium exploration and development company with
near-term production assets within the 'Montana Helium Fairway', is pleased to
announce an issue of equity raising gross proceeds of £4.5 million and an
update on the results of flow testing at Weil #1 well and its wider drilling
programme.

Highlights:

·      Placing and subscription (together the "Fundraising") of
28,125,000 new ordinary shares of 1 pence each ("Ordinary Shares") at a price
of 16 pence per share ("New Shares"), raising gross proceeds of £4.5 million
from a large private family office and other institutional investors

·      Weil #1 sustained flow rates at 2,300 thousand cubic feet per day
(Mcf/d) of raw gas at 32/64" at Weil #1

·      High grade helium assayed at 1.0% helium with the balance being
primarily nitrogen

·      Helix has now tested three production wells with capacity to
generate pre-tax cashflow of circa twelve-million dollars a year 1  in line
with projections

·      Two new production wells to be drilled, potentially allowing
pre-tax cashflow of $20 million per year in the first six months of production

·      Fourth production well Inez #1 to commence mobilisation next week

·      Hannam & Partners have acted as sole bookrunner and broker in
connection with the Fundraising

Bo Sears, CEO of Helix Exploration, commented:

"We are pleased to announce the successful recompletion of the Weil #1 well at
the Rudyard Field in northern Montana. With this result, Helix now has three
confirmed production wells - Linda #1, Darwin #1, and Weil #1 - with these
three helium gas producing wells it firmly establishes the Rudyard field as a
robust, near-term helium-producing field."

"Based on exceptional results to date, the Company has decided to fast-track
development with a fourth and fifth production well, with Inez #1 to commence
mobilisation next week.  An additional two production wells will allow for a
rapid ramp up to full field production, improving overall project NPV.  This
will be funded through the proceeds of the Fundraising, led by a cornerstone
investment by a large private family office with over a $1 billion assets
under management, underscoring Helix's stature as an institutional-grade
investment opportunity."

Weil #1 Results

Helix has successfully tested the target reservoir at Weil #1 in the Souris
and Red River formations.  The Weil #1 well was originally completed in 2013
with encouraging results.  Our recent recompletion mirrored the original 2013
results, testing combined flow from existing perforations at 5,076 - 5,080ft,
5,137 - 5,139ft, 5,191 - 5,193ft, 5,199 - 5,202ft and 5,261 - 5,265ft, and
produced a strong commercial flow rate at >2,000 Mcf/day in line with
expectations.

Following a technical issue with a bridge plug between the Souris and Red
River formations which could be opened but not recovered, and in the interest
of operational efficiency, Helix elected to produce from the existing
perforated intervals, which demonstrated a very strong performance.

Testing proved excellent deliverability, flowing 2,300 Mcf/d of raw gas on a
32/64" choke.  Production from the Souris formation meets the Company's
baseline production forecast of 2,000 Mcf/day of raw gas.  Upside remains in
extending the perforated interval within the reservoir formations and
perforating potential fracture porosity between the two reservoirs.

A sample of gas was sent to Isotech Laboratories in Illinois for analysis and
returned 1.0% Helium and 93.5% 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 and Linda #1, indicating a continuity of grade across the Rudyard
closure.

With the re-completion of Weil #1 well, Helix has now demonstrated flow from
three production wells.  At a conservative sustained production rate of 2,000
Mcf/day raw gas per well, consistent helium grades at 1.0% to 1.2% helium, and
a helium sales price of $500/Mcf, the three wells would generate pre-tax
cashflow of circa $12,000,000 per year.  The consistency of gas composition
and flow rate across the three wells demonstrates the scalability of
production at Rudyard and potential for expansion with additional production
wells across the closure.

Inez #1 drilling

Following on from exceptional results at Linda and Weil, Helix has elected to
drill a 4(th) and 5(th) production well, with the 4(th) production well, Inez
#1, targeting the extension of proven helium reservoirs in Souris and Red
River formations to the south of Linda #1, and an additional 5(th) production
well to be drilled at a location to be determined.  Mobilisation of rig and
crew to Inez #1 is targeted to commence as early as next week, with drilling
expected to take approximately 10 days to reach target depth from
commencement.

The additional production wells are intended to optimise ramp up to full field
production by increasing cash-flow within the first 6 months of production.
Greater cash-flow will allow the Company to expand its 2026 drilling campaign
and is anticipated to enable the Company to reach full-field production in one
year rather than two, improving overall project economics and NPV.

All five production wells at Rudyard are expected to commence production
following the installation of onsite processing equipment.  With
manufacturing of the membrane module and testing of the PSA facility complete,
on-site construction activities are due to commence in June 2025.

Fundraising

Helix Exploration has completed a Fundraising of 28,125,000 New Shares at a
price of 16 pence per share, representing a 9.1% discount to the Company's
10-day VWAP of 17.6p and a 14.7% discount to the closing mid-market share
price on 4 June 2025, raising gross proceeds of £4,500,000. The majority of
the New Shares have been subscribed for by a large private family office
investment firm with over $1 billion assets under management as well as other
institutional investors.

The proceeds from the Fundraising will be used to fund the drilling of a 4(th)
and 5(th) production well at Rudyard as well as providing capital for plant
construction, general working capital purposes and for supporting the
Company's strategic objectives of entering first helium production by the end
of summer 2025 and accelerating project ramp up to full scale production.

Hannam & Partners have acted as sole bookrunner and broker in connection
with the Fundraising

Admission

Application will be made to the London Stock Exchange for the New Shares to be
admitted to trading on AIM ("Admission"). It is expected that Admission will
become effective and that dealings in the New Shares on AIM will commence on
or around 10 June 2025. The New Shares will rank pari passu with the existing
Ordinary Shares.

Total Voting Rights

For the purpose of the Disclosure and Transparency Rules, following Admission,
the enlarged issued share capital of the Company will comprise 185,095,000
Ordinary Shares. The Company does not hold any shares in treasury. The above
figure may be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in, the Company, under the Disclosure and
Transparency Rules.

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/) .

IMPORTANT NOTICES

Caution regarding forward looking statements

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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.

Cairn, which is authorised and regulated in the United Kingdom by the FCA, is
acting as Nominated Adviser exclusively for the Company and no one else in
connection with the contents of this Announcement and will not regard any
other person (whether or not a recipient of this Announcement) as its client
in relation to the contents of this Announcement nor will it be responsible to
anyone other than the Company for providing the protections afforded to its
clients or for providing advice in relation to the contents of this
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amended ("FSMA") or the regulatory regime established thereunder, Cairn
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express or implied, as to the contents of this Announcement including its
accuracy, completeness or verification or for any other statement made or
purported to be made by it, or on behalf of it, the Company or any other
person, in connection with the Company and the contents of this Announcement,
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or any other person, in respect of its decision to acquire shares in the
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Hannam & Partners, which is authorised and regulated in the United Kingdom
by the FCA, is acting as  Broker and Sole Bookrunner exclusively for the
Company and no one else in connection with the contents of this Announcement
and will not regard any other person (whether or not a recipient of this
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nor will it be responsible to anyone other than the Company for providing the
protections afforded to its clients or for providing advice in relation to the
contents of this Announcement. Apart from the responsibilities and
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responsibility whatsoever, and makes no representation or warranty, express or
implied, as to the contents of this Announcement including its accuracy,
completeness or verification or for any other statement made or purported to
be made by it, or on behalf of it, the Company or any other person, in
connection with the Company and the contents of this Announcement, whether as
to the past or the future. Hannam & Partners accordingly disclaims all and
any liability whatsoever, whether arising in tort, contract or otherwise (save
as referred to above), which it might otherwise have in respect of the
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been independently verified. This Announcement contains statements that are,
or may be deemed forward-looking statements, which relate, inter alia, to the
Company's proposed strategy, plans and objectives. Such forward-looking
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factors beyond the control of the Company (including but not limited to future
market conditions, legislative and regulatory changes, the actions of
governmental regulators and changes in the political, social or economic
framework in which the Company operates) that could cause the actual
performance or achievements on the Company to be materially different from
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 The content of this Announcement has not been approved by an authorised
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needing advice should consult an appropriate independent financial adviser.

 

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are: (a) persons in Member States who are Qualified Investors; and (b) in the
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Neither the content of the Company's website nor any website accessible by
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Announcement.

 

 

 

 

 1  Pre-tax cashflow calculated using a conservative sustained production flow
rate of 2,000 Mcf/day raw gas per well, with helium grade between 1.0% and
1.2% helium, and a helium sales price of $500/Mcf.

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