REG - Helix Exploration - Helium Gas-Shows in Amsden and Charles Formations

Helix ExplorationAnnouncement

19/08/2024 07:00

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RNS Number : 8972A  Helix Exploration PLC  19 August 2024

19 August 2024

Helix Exploration PLC

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

 

Helium Gas-Shows in Amsden and Charles Formations

 

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', is pleased to report the
identification of significantly elevated helium in drilling mud (a "gas-show")
within the Amsden and Charles formations.

 

Significant elevated helium was identified while drilling in the Amsden
formation at a depth of 3,885ft (1,185m) on 17 August 2024 at 03:15 MST,
reaching peak readings at 50x over background level.  Low gamma at bit
readings over this same interval demonstrate a clean reservoir.  Analysis of
drill cutting identified these anomalies to be associated with the Amsden
formation.

 

The Amsden formation has previously been drilled and tested for gas in the
Hilliston #1 well, roughly 200 metres east of current operations at the Clink
#1 well.  The Hilliston #1 well tested a 195ft column of non-flammable gas
from the Amsden Formation at high flow rate and minimal pressure loss over 30
days.  The gas was tested at approximately 80% Nitrogen and was not assayed
for helium.

 

The Clink #1 well is currently in the Charles Formation at a depth of 5,150ft
(1,570m) with drilling continuing.  Significant elevated helium was
identified in multiple gas-shows from 4,860ft (1,480m) reaching peak values at
130x over background level.

 

The Charles formation has previously been drilled and tested for gas in the
Froze To Death and Treasure #18-1 wells, both of which are down-dip of the
current Clink #1 well.  These wells tested 175ft and 145ft columns
respectively of non-flammable gas which was tested at approximately 80%
nitrogen and was not assayed for helium.

 

The detection of a helium gas-show over these intervals confirms the presence
of helium within the previously identified gas system. The Company is drilling
on to the primary target in the Flathead formation at approximately 7,410ft
(2,260m) and planned total depth at approximately 8,000ft (2,440m).  Drilling
is progressing well and remains on schedule.

 

 

Background

In helium exploration, the identification of a helium gas-show indicates a
recorded increase in helium gas above the baseline levels, demonstrating
presence of helium in the formation being drilled. The presence of a helium
gas-show is a positive indicator for further exploration, as it shows that the
formations contain anomalously high levels of helium, which is a valuable and
sought-after gas for various high-tech and industrial applications.

However, the presence of a helium gas-show alone does not confirm that the
helium can be economically extracted. Further testing and analysis are
required to determine the commercial viability of the helium system, including
wireline logging to determine formations with free-gas potential and flow
testing to determine grade, flow rate, and production profile.

Gas-shows are reported as multiples over background level, however the
intensity of a gas-show is dependent on several factors including the diameter
of the bit, rate of penetration, mud weight, mud flow, and reservoir
characteristics of the formation being drilled.  Therefore, there is no
correlation between the reported scale of the anomaly and the grade of helium
present within the formation.

There is no correlation between the intensity of a helium gas-show and the
grade of helium within the formation.  Nor is there a way to determine from a
gas-show if the helium anomaly is associated with free-gas or a
gas-saturated-brine.  Wireline logging will be conducted on completion of the
Clink #1 well to identify reservoirs with free gas for extended flow
testing.  A discovery may be declared only after samples of gas have been
recovered to surface and analysed for helium.

 

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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