REG - Helix Exploration - Operational Update - Commencement of Civils

Helix ExplorationAnnouncement

22/07/2024 07:00

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RNS Number : 1859X  Helix Exploration PLC  22 July 2024

22 July 2024

 

Helix Exploration PL

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

 

Operational Update

Commencement of Civils

 

 

Helix Exploration, the helium exploration and development company focused on
helium deposits within the 'Montana Helium Fairway', is pleased to announce
the commencement of construction work on access road and drill pad ("Civils")
at the Ingomar Dome project ("Ingomar") area in Montana.

 

Highlights

·    Construction commenced of 0.75-mile access road and drill pad at
Ingomar

·    Two well Q3 2024 drilling program: Clink #1 well at Ingomar and
Darwin #1 well at Rudyard

·    Drilling of Clink #1 well to commence following completion of civils

·  Combined budget cost of the two well programmes are estimated at
approximately $4.1m which demonstrates the potential for the Company to
operate cost-effective exploration and development within the state of Montana

 

Timeline

Construction on the access road and drill pad has commenced at the Clink #1
location within the Ingomar Dome Project.  The access road has been surveyed
at 0.75 miles, allowing Civils work to be completed relatively quickly over a
short development distance.

Following completion of Civils the Company targets to commence drilling
operations in early-August:

·    Mobilisation and rig-up is anticipated to take approx. 1 week

·    Drilling is anticipated to take approx. 3-4 weeks

·    Wireline and well completion is anticipated to take approx. 1 week

·    Flow testing and appraisal is anticipated to take approx. 4 weeks

The Company will keep investors updated as drilling progresses via RNS,
potentially including updates on commencement of drilling, significant helium
gas shows in drilling mud, wireline results, initial flow test results and
full flow test results.

 

Budget

Quoted costs for drilling at Ingomar and Rudyard have come in below budget:

The quoted cost for drilling and appraising the Clink #1 well at Ingomar is
approximately $2,130,000 including extended well test but excluding
contingencies.  Significant savings were achieved using local suppliers from
within the state of Montana, reducing mobilisation costs and standing-time
charges.

The estimated cost for drilling and appraising the Darwin #1 well at Rudyard
is approximately $1,980,000 including extended well test but excluding
contingencies.  The cost of drilling at Rudyard is lower than Ingomar due to
the shallower target depth at ~5,500ft at Rudyard compared to ~8,000ft at
Ingomar.

The Company benefits from relatively low drilling costs in Montana compared
with other jurisdictions as well as from savings made by the Company in vendor
selection. Expected savings to be achieved will help maintain adequate funding
for planned development activities after completing the two-well Q3 2024
drilling campaign. These activities may include project pipeline growth,
detailed plant engineering and construction financing.

 

 

Presentation

David Minchin, Chairman, will be presenting at the FocusIR virtual Investor
Webinar on Tuesday 23(rd) July at 6pm (BST) and broadcast on the London South
East investor platform (www.lse.co.uk (http://www.lse.co.uk) ), alongside
other companies within the natural resources sector.

David Minchin (Chair) will give an overview of the Company and an update on
current and upcoming workstreams.

 

Date: 23 July 2024

Time: 18:00 - 20:00 BST

 

To register to watch the event, follow the link
(https://us06web.zoom.us/webinar/register/6417206972076/WN_EVcAcrD4SLqUL6r2O7DPWQ#/registration)
.

 

 

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/) .

 

 

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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