REG - Helix Exploration - Helium results from Amsden & Rudyard Update

Helix ExplorationAnnouncement

27/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241127:nRSa7655Na&default-theme=true

RNS Number : 7655N  Helix Exploration PLC  27 November 2024

 

27 November 2024

 

Helix Exploration PLC

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

 

Helium results from Amsden formation & Rudyard Update

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', has completed test work
on the Amsden formation, one of three target zones at the Clink #1 well, and
has identified sub-economic helium grades.

 

Highlights

·   Sub-economic( 1  (#_ftn1) ) helium grade in gasses tested from the
Amsden formation, one of the three target formations within Clink #1

·      Amsden formation is a secondary target containing less than
approximately 6% of the project resource of 2.3Bcf as defined in the CPR

·      Results imply that high grade helium could be confined beneath
the Amsden formation, with gas present migrated from a different source

·      Acidisation and appraisal testing of the Charles formation is due
to commence as soon as possible

·      Testing at Darwin #1, in the Rudyard project is due to commence
on 2 December 2024

 

Bo Sears, CEO of Helix Exploration, said:

"While not the results we were hoping for from the Amsden formation, one of
three reservoir targets in the Clink #1 well, there is significant opportunity
within the Ingomar project from the Charles formation, where acidisation and
appraisal is due to commence, and our primary target in the Flathead formation
which has supported the case for the Ingomar Dome with the presence of 2.5%
helium and 55% hydrogen.

 

"Testing at Rudyard is due to commence on Monday, where commercial grade
helium has been found with high flow rates in historical drilling.  We are
confident about the upcoming developments at both Ingomar and Rudyard well
tests and look forward to sharing results in due course."

 

Results

The Amsden formation, a secondary target in the Clink #1 well at Ingomar
containing less than approximately 6% of the project P50 resource of 2.3Bcf
helium, was perforated over 87ft from 3,885ft - 3,972ft, flowing 4,250 Mcf/d
of raw gas on a 30/64" choke. Three samples of this gas were sent to Isotech
Laboratories in Illinois for analysis and returned 84% Nitrogen, 13% methane,
and with sub-economic helium grades.

At sustained flow rates of 4,000Mcf/day raw gas and a helium sales price of
$500/Mcf production from the Amsden would generate pre-tax cashflow of circa
$1,000,000 per well per year, using membrane units to upgrade helium
concentrations prior to processing.  This falls beneath the Company's
definition of a commercial development for standalone production from the
Amsden, but could generate useful additional cash-flow if produced alongside
helium from the Flathead or Charles formations.

The results are contrasting to the 2.5% helium identified in the underlying
Flathead formation, the primary target in the Clink #1 well, implying an
excellent seal that is potentially containing the high-grade helium system
beneath the Amsden, and that gas in the Amsden has migrated from a different
source.

The Company is therefore keen to move rapidly on to testing the Charles
formation which demonstrated the highest helium anomalies identified in Clink
#1 with up to 672ppm He in drilling mud, excellent reservoir properties and
strong gas effect in wireline logging.  The Company will mobilise equipment
to acidise the limestone reservoir with HCl to clear mud blockages and
stimulate flow. Stimulated flow testing and appraisal will commence as soon as
equipment and crew are available.

Rudyard Update

Helix is currently mobilising equipment and crew to Rudyard project to
commence testing on Darwin #1.  Testing is due to commence on 2 December 2024
with results to be published once sample assays are received from the
laboratory.  Historic drilling has previously identified 0.9-1.3% helium and
commercial flow rates from the Red River and Souris intervals.  Additionally,
Helix will be testing the Dry Creek and intervals in the Upper Cambrian where
wireline logging has identified gas effect, which offers the potential to
significantly increase the size of the resource at Rudyard.

 

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  At sustained flow rates of 4,000Mcf/day raw gas and a helium sales price
of $500/Mcf production from the Amsden would generate pre-tax cashflow of
circa $1,000,000 per well per year.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBFBBTMTJTTAI