REG - Helix Exploration - Helium Discovery in Clink #1

Helix ExplorationAnnouncement

19/11/2024 07:00

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RNS Number : 6988M  Helix Exploration PLC  19 November 2024

 

19 November 2024

 

Helix Exploration PLC

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

 

Helium Discovery in Clink #1

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', is pleased to provide an
update on testing operations at the Clink #1 well at the Ingomar Dome Project
in Montana.

 

Highlights

 

·   Flathead formation gas sample tested 2.5% helium, demonstrating
significant helium potential with additional stimulation required to generate
commercial flow rates.

·   Flathead formation tested 55.2% hydrogen in gas sample isolated from
drilling mud, in contrast to formation gas sample tested 0.7% hydrogen.

·     Successfully flowed 4,250 thousand cubic feet per day (Mcf/d) of
raw gas from the Amsden formation on a 30/64" choke and 1,050 PSI wellhead
pressure.

·      Amsden formation appears to be a robust gas producer with
additional gas analysis underway.

·      Absolute Open Flow (AOF*) estimated to be up to 8,000 Mcf/d.

·      Charles formation exhibiting strong pressure indications for
future stimulated flow testing.

*AOF is the maximum production rate and does not represent sustained
production rates. Prudent flow rates will be lower.

 

Bo Sears, CEO of Helix Exploration, said:

 

"Clink #1 has delivered encouraging results, particularly in the Amsden
formation, which has demonstrated robust production potential. The unexpected
findings in the Flathead formation-including 2.5% helium in sampled gas and
55.2% hydrogen concentration in gas isolated during drilling- represent a
unique and exciting opportunity for the Company. We can see significant
opportunities to collaborate with experts in the hydrogen field to understand
the origins and potential of the Ingomar system.

 

"The results underscore the significant untapped potential of our Montana
Helium Fairway acreage.   This lays a strong foundation for advancing
shareholder value as we continue to unlock the value of our portfolio for
shareholders."

 

David Minchin, Chairman of Helix Exploration, said:

"The discovery of helium at Clink #1 is a milestone event for the Company and
a significant achievement considering we only listed in April 2024.  With
testing ongoing at Clink #1 and ready to commence at Darwin #1, we hope that
this is the first of several discovery announcements to be made before the end
of this year."

 

Results

Helix has successfully tested three target formations at Clink #1: the
Flathead, Charles, and Amsden.

A surface gas sample from the Flathead formation yielded a helium
concentration of 2.48% in a nitrogen gas mix with low levels of CO(2) and
methane over from perforations at a depth of 7,909ft - 7,942ft.  Helium
grades are over 1.6x higher than estimated in Company CPR and Scoping Study,
offering capacity for an increase in resources and project NPV when these
numbers are revisited.  Despite good porosity readings on wireline, gas from
the Flathead does not flow naturally and additional stimulation could be
required to generate commercial flow rates, a process which is relatively
common and cost-effective in the region.

Hydrogen assayed at 55.2% H(2) in gas separated from mud during drilling 1 
(#_ftn1) , this contrasts strongly with 0.7% H(2) assays in gas sampled
directly from the Flathead formation during testing.  The presence of high
hydrogen concentrations are rare and potentially significant, with
implications for both the energy and industrial gas markets. Helix is seeking
collaboration with hydrogen experts to better understand these results and
explore the potential for unlocking further value from this reservoir.

In the Charles formation was perforated at a number of intervals over a 145ft
section (5,010ft - 5,025ft, 4,954ft - 4,960ft, 4,935ft - 4,947ft and 4,855ft -
4,880ft).  While gas did not flow to surface during this initial test,
downhole pressure monitoring and drilling data indicate a promising reservoir.
High mud losses during drilling suggest that formation damage may have
temporarily inhibited permeability. Helix remains confident in the Charles
formation's potential and plans to revisit this horizon to unlock its full
value.

The Amsden formation, perforated over 87ft from 3,885ft - 3,972ft, delivered
highly encouraging results, flowing 4,250 Mcf/d of raw gas on a 30/64" choke.
Extended flow testing determined an AOF of up to 8,000 Mcf/d, confirming the
Amsden as a strong producer. Gas analysis is underway, and preliminary
indications suggest the Amsden is capable of sustained production at
commercially viable rates.

 

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 (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

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 6,674
acres in Rudyard, Montana, where a helium discovery of 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 projects progress 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.

 1  (#_ftnref1) Analysis is of gas extracted from drilling mud by headspace
equilibration utilising nitrogen gas to create headspace.

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