REG - Helix Exploration - Helium Discovery in Darwin #1

Helix ExplorationAnnouncement

12/12/2024 07:00

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RNS Number : 7703P  Helix Exploration PLC  12 December 2024

 

12 December 2024

 

Helix Exploration PLC

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

 

Helium Discovery in Darwin #1

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', is pleased to announce a
commercial helium discovery in Darwin #1 well at the Rudyard Project in
Montana.

 

 

Highlights

·      Darwin #1 confirms commercial helium discovery at Rudyard

·      236ft of Darwin #1 perforated simultaneously, testing Souris and
Red River reservoir horizons

·      High grade helium assayed at 1.1% helium with the balance being
primarily nitrogen

·     Commercial flow rates sustained at 2,750 thousand cubic feet per
day (Mcf/d) of raw gas at 40/64" choke with Absolute Open Flow calculated to
be over 4,500 Mcf/d

·    Rudyard field can support multiple production wells on structure
with each well having the potential to produce pre-tax cashflow of circa $4.0
million per year and drain a large area over a sustained period

·    Fast-track, low-cost, production taking advantage of favourable gas
composition and existing infrastructure (power, road, rail)

 

 

Bo Sears, CEO of Helix Exploration, said:

 

"Darwin #1 has delivered exceptional results and has demonstrated it has the
potential to be a strong producer capable of delivering sustained flow of
commercial helium.  The identification of 1.1% helium with commercial flow
rates at Darwin #1 makes Rudyard a company making discovery.  With capacity
for several production wells to operate on Rudyard field simultaneously the
project has potential to generate multi-million-dollar revenues per year."

 

"With deep experience taking helium projects through exploration into
production, the Board is uniquely positioned to rapidly advance our
projects.  With low capital requirements and high yield return on investment
Rudyard is attractive to many forms of project finance. We look forward to an
exciting 2025 as we update the market on plans to become cash generating
before the end of next year."

 

Results

Helix has successfully tested target reservoirs at Darwin #1 in the Souris and
Red River intervals.  All reservoirs were tested simultaneously in a single
perforation over 236ft from 5,000ft to 5,100ft and 5,140ft to 5,276ft.  The
perforation therefore also tested potential fracture porosity observed
occurring between the main target reservoirs.

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

Testing delivered highly encouraging results, flowing 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, confirming Darwin #1 as a strong producer.  With good
permeability each well could be capable of draining a large area.

Both Souris and Red River intervals were found higher on structure to historic
drilling to the west.  This demonstrates that Darwin #1 was drilled 'up-dip'
of historic wells, meaning that the apex of the domal anticline is broader and
further to the east than previously interpreted.  This suggests that Rudyard
is a much larger structure  than previously modelled.

Samples of gas were sent to Isotech Laboratories in Illinois for analysis and
returned 1.1% Helium and 95% Nitrogen with very low levels of Methane and no
significant CO(2) or water.  The gas mix observed would be suitable for a
low-cost membrane / pressure swing adsorption ("PSA") plant, allowing Rudyard
to be fast tracked to production utilising existing infrastructure on site
including three-phase power, road and rail transport connections.

At conservative sustained flow rates of 2,000Mcf/day raw gas, 1.1% helium
grade, and a helium sales price of $500/Mcf, production from the Darwin #1
would generate pre-tax cashflow of circa $4,000,000 per well per year.  The
Company controls the entire anticline in its leasehold and has the opportunity
to place several producing wells within the Rudyard field and estimates
production well costs of $1.2m per well.  Therefore, Rudyard passes the
Company threshold to declare an economic discovery with potential to repay
well-field and process plant capital within a reasonable timeframe and allow
excess cash-flow to be re-invested or distributed.

 

 

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.

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