REG - Helix Exploration - Interim Results
25/06/2024 07:00
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RNS Number : 6698T Helix Exploration PLC 25 June 2024
Helix Exploration PLC
("Helix Exploration" or "Helix" or the "Company")
Half-year Report
Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', announces its unaudited
interim results for the six month period ended 31 March 2024.
Chairman's statement
I am pleased to announce Helix Exploration's maiden interim results. This is
the Company's first interim results since the Company's successful admission
to the AIM market of the London Stock Exchange on 9 April 2024 and covers the
pre-IPO period to 31 March, 2024.
We decided to list in London because we believe it is the pre-eminent market
for growth resource companies with a deep pool of investors, talent and a high
standard of governance. London remains a world leading capital market for
small-cap companies, and I am delighted to have been a part of bringing Helix
Exploration to the London market.
Without the capital provided by our shareholders at the IPO, we would not be
able to achieve our strategic aims and focus on early production at the
Ingomar Project. Drilling at Ingomar is on target to commence in Q3 2024.
A 30-day flow test of the appraisal well is anticipated to give sufficient
technical data for the Company to commence detailed plant engineering and
construction with a target for first gas before the end of 2025.
Our recent acquisition of Rudyard represents an important opportunity for
Helix Exploration. It is a proven helium discovery with 480 million cubic feet
of Contingent Resources that have an in-situ value of >$250m. Expanding our
helium portfolio is a strategic priority and this acquisition represents an
exciting addition that complements our flagship Ingomar Dome Project. It is a
testament to the Helix team and the deep experience of our CEO Bo Sears that
we were able to secure Rudyard for a total consideration of only $250,000, and
that the majority of this consideration was paid in shares.
I would like to thank stakeholders who have supported the Company throughout
the listing process and beyond.
The helium market
Helium is critical in our modern world, its applications for high technologies
are indispensable in a number of applications including in the medical sector,
high-tech manufacturing, defence, rocketry, computing, aerospace and multiple
others. The sector is experiencing sustained demand growth over a number of
years, driving the price of helium to grow at 20% CAGR over the last decade.
Due to the acceleration in the technology sector, demand for helium is
continuing to increase, with the current levels of supply unable to keep up,
new sources of helium are required to balance the market.
Strategy
Helix is focused on the exploration and development of helium deposits within
the 'Montana Helium Fairway', which extends from Wyoming USA to Saskatchewan
Canada and hosts several known helium occurrences including production in
Canada from the Weil Group and North American Helium. Ingomar represents a
large anticlinal closure of 16,512 acres mapped at surface, in seismic and in
drilling, located on the upthrown side of the deep-seated Sumatra Thrust.
Our strategic focus is on appraisal and early production at Ingomar Project.
Drilling is targeted for Q3 2024, and first helium production targeted for Q4
2025. We remain committed to open and transparent communication with investors
and the wider market as the project progresses through development.
Operations and Outlook
We have had a busy and exciting few months since listing on AIM. In April 2024
we announced a strategic partnership with Petroleum Consultants, LLC, the
execution of this contract marked the initiation of our Phase 1 Work Programme
and the first steps towards the delivery of a safe and successful drilling
campaign in Q3 2024. Petroleum Consultants have extensive operational
experience within Montana and across the wider United States, particularly in
managing exploration activities throughout the Rocky Mountains region.
At the end of April 2024, Helix announced it had executed a binding contract
with Treasure State Drilling, LLC for the provision of their Cardwell KB-150
D1D Drilling Rig and equipment for the Company's Q3 2024 appraisal drilling
campaign at the Ingomar Dome project. The services of Treasure State
Drilling forms a highly competent team boasting decades of combined experience
in helium exploration and Rocky Mountain drilling. With these essential
components in place, Helix is well positioned for the commencement of drilling
at Ingomar Dome in Q3 2024.
In June 2024, the Company announced the results of a Scoping Study Economic
Analysis conducted by Aeon Petroleum Consultants Corporation. The report
demonstrated the potential for exceptional economic returns across a range of
modelled scenarios with baseline results calculated as NPV8 of $303.1 million
using a helium price of $550/Mcf and grade of 1.50% He and initial CAPEX
requirement of only $19.7 million. The Ingomar Dome Project is estimated to
generate net revenue of $605.6 million after CAPEX, OPEX, tax and royalty over
a 29-year life of mine.
Also in June 2024, the Company announced the execution of a Farm-In agreement
whereby the Company acquired a 100% working interest in Rudyard Project
covering 5,600 acres in Hill County, Montana. Rudyard represents the
acquisition of a discovery with previously identified up to 1.3% Helium flowed
to surface from two wells drilled adjacent to the acquired leases. Rudyard
has gross Contingent Resources of 484 million cubic feet of helium with
in-situ value of >$250 million at helium price of $550/Mcf.
We expect the next six months to be an incredibly busy period of growth and we
look forward to drill testing the Ingomar Dome Project and Rudyard Project
with a drilling campaign in Q3 2024. We will provide the market and our
shareholders with updates on results of drilling, flow tests and updated
economic model as exploration and appraisal progress on the two project areas.
We continue to work towards our goal of first gas flow before the close of
2025.
David Minchin
Chairman
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 prospective helium resource of
2.3Bcf and upside of 6.7 billion cubic feet. Historic drilling and/or testing
has identified gas in all target reservoir horizons.
Helix Exploration will focus on a drilling campaign and early production at
the Montana Ingomar Dome Project. An aggressive development timeline will
see a drilling campaign targeted for Q3 2024 and 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/) .
HELIX EXPLORATION PLC - COMPANY NUMBER 15160134
CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME - FOR THE PERIOD ENDING 31 MARCH 2024
Unaudited
Period ended 31 March 2024
Note £'000
Continuing Operations
Revenue from continuing operations -
Costs associated with listing (538)
Public and investor relations (40)
Travel (28)
Administrative expenses 7 (107)
Operating loss (713)
Loss before taxation (713)
Taxation on loss or ordinary activities 8 -
Loss for the period from continuing operations (713)
Items that may be reclassified to profit or loss -
Total comprehensive loss for the period attributable to shareholders from (713)
continuing operations
Basic & dilutive earnings per share - pence 9 (4.66)
The notes form part of the unaudited condensed interim financial statements
HELIX EXPLORATION PLC - COMPANY NUMBER 15160134
CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION - AS AT 31 MARCH 2024
Unaudited
As at 31 March
2024
Note £'000
CURRENT ASSETS
Cash and cash equivalents 340
Trade and other receivables 106
TOTAL CURRENT ASSETS 446
TOTAL ASSETS 446
CURRENT LIABILITIES
Trade and other payables 243
TOTAL CURRENT LIABILITIES 243
TOTAL LIABILITIES 243
NET ASSETS 203
EQUITY
Share capital 10 227
Share premium 10 689
Retained earnings (713)
TOTAL EQUITY 203
The notes form part of the unaudited condensed interim financial statements
HELIX EXPLORATION PLC - COMPANY NUMBER 15160134
CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY - AS AT 31 MARCH 2024
Share capital Share premium Retained earnings Total equity
£'000 £'000 £'000 £'000
Loss for period - - (713) (713)
Total comprehensive loss for period - - (713) (713)
Transactions with owners in own capacity
Ordinary Shares issued in the period 227 689 - 916
Transactions with owners in own capacity 227 689 - 916
Balance at 31 March 2024 227 689 (713) 203
HELIX EXPLORATION PLC - COMPANY NUMBER 15160134
CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASHFLOWS - FOR THE PERIOD ENDING 31 MARCH 2024
Unaudited
Period ended 31 March 2024
Note £'000
Cash flow from operating activities
Loss for the financial period (713)
Adjustments for:
Shares issued in lieu of services 120
Cash generated from operations (593)
(Increase) in trade and other receivables (106)
Increase in trade and other payables 243
Cash generated from operations (456)
Net cashflow from operating activities (456)
Cash flows from financing activities
Proceeds from issue of shares 796
Net cash flow from financing activities 796
Net increase in cash and cash equivalents 340
Cash and cash equivalents at beginning of the period -
Foreign exchange effect on cash balance -
Cash and cash equivalents at end of the period 340
The notes form part of the unaudited condensed interim financial statement
HELIX EXPLORATION PLC - COMPANY NUMBER 15160134
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDING 31 MARCH 2024
1 General information
Helix Exploration Plc ("the Company") was incorporated on 23 September 2023 in
England and Wales with Registered Number 15160134 under the Companies Act
2006.
The address of its registered office is Eccleston Yards, 25 Eccleston Place,
London SW1W 9NF, United Kingdom.
The principal activity of the Company and its subsidiaries collectively
referred to as "the Group" is the development and exploitation of small-scale
gas leases which will be held via its 100 per cent. interest in Hereford
Resources, LLC ("Hereford") in the United States of America state of Montana.
The acquisition of Hereford was completed post period end and hence
stand-alone Company financial statements have been presented.
2 Accounting policies
IAS 8 requires that the directors shall use their judgement in developing and
applying accounting policies that result in information which is relevant to
the economic decision-making needs of users, that are reliable, free from
bias, prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
3 Basis of preparation
The unaudited condensed interim financial statements ("interim financial
statements") have been prepared in accordance with the requirements of the AIM
rules and international accounting standards in conformity with the
requirements of the companies act 2006 and the companies act 2006 applicable
to companies reporting under UK-adopted international accounting standards
("IFRS").
The interim financial statements have been prepared in accordance with IAS 34
"interim financial statements". The interim financial statements do not
include all disclosures that would otherwise be required in a complete set of
financial statements but have been prepared in line with IFRS. As these
interim financial statements represent the first set of financial statements
prepared by the Company they are unable to rely on the policies adopted in the
last year end reports. Therefore the relevant policies adopted have been
detailed at note 5.
The interim financial statements cover the period from incorporation on 23
September 2023 until 31 March 2024. As this covers the period from
incorporation no comparatives have been provided.
The interim financial statements have been prepared using the measurement
bases specified by IFRS for each type of asset, liability, income and expense.
The interim financial statements do not constitute statutory accounts within
the meaning of section 434 of the Companies Act 2006 and have not been
audited.
The interim financial statements are presented in British Pounds sterling
("£'000") unless otherwise stated, which is the Company's presentational
currency.
The performance of the Company is not affected by seasonal factors.
4 Going concern
The directors have assessed the Company's ability to continue as a going
concern and are satisfied that the Company has adequate resources to continue
in operational existence for the foreseeable future.
Subsequent to period end on 9 April 2024, the Company completed its listing on
the AIM segment of the London Stock Exchange and alongside admission secured a
£7.5 million fundraise. This gives the Company significant runway in relation
to going concern and hence the directors are comfortable adopting the going
concern basis in preparing these interim financial statements.
5 Accounting policies
As these financial statements represent the first set of financial statements
prepared by the Company they can not rely on assuming the same accounting
policies, presentation and methods of computation that were adopted in the
previous years audited accounts. Therefore the significant accounting policies
adopted during the period are listed below.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, and demand
deposits with banks and other financial institutions.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest method, less any
allowance for expected credit losses. Trade receivables are generally due for
settlement within 30 days.
Trade and other payables
These amounts represent liabilities for goods and services provided to the
Company prior to the end of the period and which are unpaid. Due to their
short-term nature, they are measured at amortised cost and are not discounted.
The amounts are unsecured and are usually paid within 30 days of recognition.
Equity
Share capital is determined using the nominal value of shares that have been
issued.
The share premium account includes any premiums received on the initial
issuing of the share capital. Any transaction costs associated with the
issuing of shares are deducted from the share premium account, net of any
related income tax benefits.
Retained losses includes all current and prior period results as disclosed in
the income statement.
6 Critical accounting estimates and judgments
In preparing the interim financial statements, the directors are required to
make judgments on how to apply the Company's accounting policies and make
estimates about the future. Estimates and judgements are continuously
evaluated based on historical experiences and other factors, including
expectations of future events that are believed to be reasonable under the
circumstances. In the future, actual experience may deviate from these
estimates and assumptions.
The directors consider the key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date that have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the period, and have concluded that there is no
material affect on the interim financial statements.
7 Administrative expenses
Period ended
31 March 2024
£'000
Directors' fees (98)
Other administrative expenses (9)
(107)
8 Taxation
A reconciliation of the value from the statement of comprehensive income is
detailed below:
Period ended
31 March 2024 £'000
Corporation tax on the results for the period -
A reconciliation of tax charge is provided below:
Loss before taxation per the financial statements (713)
Tax credit at the weighted average of the standard rate of corporation tax in (135)
UK of 19%:
Tax effect of capital items disallowed for corporation tax purposes -
Current period losses for which no deferred tax asset is recognised 135
Income tax charge for the period -
9 Earnings per Ordinary Share
Period ended
31 March 2024
Loss attributable to shareholders of Helix - £'000 (713)
Weighted number of ordinary shares in issue 15,288,211
Basic & dilutive earnings per share from continuing operations - pence (4.66)
There is no difference between the diluted loss per share and the basic loss
per share presented. Share options and warrants could potentially dilute basic
earnings per share in the future but were not included in the calculation of
diluted earnings per share as they are anti-dilutive for the period presented.
10 Share capital & share premium
Ordinary shares Share capital Share premium Total
£'000 £'000 £'000
At 23 September 2023 - - - -
Issue of ordinary shares (1) 5,500,000 55,000 - 55,000
Issue of ordinary shares (2) 17,220,000 172,200 688,800 861,000
At 31 March 2024 22,720,000 227,200 688,800 916,000
(1)On incorporation, the Company issued 5,500,000 ordinary shares of £0.01 at
their nominal value of £0.01.
(2) On 14 December 2023, the Company issued 17,220,000 ordinary shares of
£0.01 at a subscription price of £0.05 per share.
There is currently an authorised share capital limit in place for the Company
which is subject to review at the next Annual General Meeting.
11 Related party transactions
Directors remuneration
During the period directors were paid the following remuneration:
- Christian Bolletta: £18,450
- David Minchin: £80,000*
*Mr Minchin deferred £20,000 of his salary to support the working capital
position of the Company during the IPO process and this was owing at period
end.
12 Ultimate controlling party
As at 31 March 2024, there was no ultimate controlling party of the Company.
13 Events subsequent to period end
Change of director and appointment of CFO
On 3 April 2024, Ryan Neates was appointed as a Director and Chief Financial
Officer of the Company. On 3 April 2024, Christian Boletta resigned as a
Director of the Company.
Fundraising and Initial Public Offering (IPO) on AIM market
On 9 April 2024 the Company completed its Initial Public Offering (IPO) and
listed on the AIM market. The Company raised gross proceeds of £7,500,000
through the issue of 75,000,000 shares at £0.10 per share.
As part of the IPO the Company agreed to grant the following warrants and
options over ordinary shares:
i) Advisor warrants
Advisor # Grant date Exercise Price (£) Time to maturity
Cairn Financial Advisors LLP 1,222,400 04/04/24 0.10 7 years
Orana Corporate LLP 1,222,400 04/04/24 0.10 5 years
Christian Boletta 1,833,600 04/04/24 0.10 5 years
Barnard Nominees Ltd 250,000 04/04/24 0.10 2 years
H&P Advisory Limited 220,000 04/04/24 0.10 2 years
SI Capital Limited 75,000 04/04/24 0.10 2 years
ii) Director options
Director # Grant date Exercise Price (£) Time to maturity
Wheeler M Sears 4,612,001 04/04/24 0.10 10 years
David Minchin 4,612,001 04/04/24 0.10 10 years
Ryan Neates 1,000,000 04/04/24 0.10 10 years
The warrants vest in 3 equal tranches on the completion of different share
price targets.
Appointment of directors
Upon the successful admission to the AIM market the following people were
appointed as directors of the Company:
· Wheeler ("Bo") M. Sears Jr (CEO)
· Gregg Peters (Independent Non-Executive Director)
· Keith Spickelmier (Independent Non-Executive Director)
Issue of options
On 26 April 2024, the Company issued the following options to the
non-executive directors of the Company as per below:
Director # Grant date Exercise Price (£) Time to maturity
Gregg Peters 1,000,000 26/04/24 0.10 10 years
Keith Spickelmier 1,000,000 26/04/24 0.10 10 years
The warrants vest in 3 equal tranches on the first, second and third
anniversary of admission date.
Acquisition of Hereford Resources, LLC
On 9 April 20024, Helix Exploration Plc completed the acquisition of the
entire membership interest of Hereford Resources, LLC in exchange for
20,000,000 ordinary shares in the Company. These shares were issued on IPO and
have subsequently been assigned a deemed value equating to that of the listing
price of £0.10.
This acquisition does not constitute a business combination as Hereford does
not satisfy the necessary criteria to be classified as a business and is
therefore treated as an asset acquisition.
The fair value of the net assets of Hereford at acquisition was as follows:
£'000
Exploration leases 387
Total net assets 387
Total identifiable net assets acquired 387
Consideration(1) 2,000
Intangible assets acquired 1,613
Acquisition of Rudyard Leases
On 20 June 2024, Helix Exploration Plc announced the execution of a Farm-In
agreement whereby the Company has acquired a 100% working interest in 5,600
acres in Hill County, Montana, ("Rudyard") from Adam Standiford, a consultant
to the Company for $250,000 USD in cash and shares. In addition, Mr Standiford
will also receive 600,000 new ordinary shares in the Company at a price of 10
pence per share as an introducer fee pursuant to his consultancy agreement
detailed in the Company's admission document.
14 Approval of the financial statements
The interim financial statements were approved by the board of directors on 25
June 2024.
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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