REG - Helix Exploration - Operational Update

Helix ExplorationAnnouncement

16/01/2025 07:00

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RNS Number : 5109T  Helix Exploration PLC  16 January 2025

 

 

16 January 2025

 

Helix Exploration PLC

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

 

Operational Update

 

Helix Exploration, the helium exploration and development company with
near-term production assets within the Montana Helium Fairway, is pleased to
provide the market with an update on operations at its Rudyard Project.

 

Highlights:

·      Acquisition of Xebec Processing Plant paid in full

·      Plant site identified at Rudyard Project

·      Production targeted for Q2 2025 pending acquisition of front-end
membrane units

 

Bo Sears, CEO of Helix Exploration, commented:

 

"The first two weeks of January 2025 have been busy as the Company advances
towards production following the acquisition of the Xebec PSA Processing Plant
over Christmas.  The plant is in excellent condition, requiring only minor
work to bring it to operational readiness.  With the plant site identified,
we anticipate the PSA plant will be ready for installation at Rudyard in Q2
2025.

 

"Results from Darwin #1 indicate that the anticline at Rudyard surpasses our
expectations and is larger than previously modelled.  This could represent
the largest producing helium structure in the State of Montana.  We look
forward to an exciting quarter for Helix Exploration as we continue to create
value for shareholders and advance Rudyard towards production and early cash
flow."

 

Background

 

Helix Exploration has completed the acquisition of its Xebec Pressure Swing
Adsorption Helium Processing Plant (which was first announced on 30 December
2024), with payment of $500,000 made in full.  This acquisition marks an
important step in the Company's journey to becoming a significant helium
producer in Montana; allowing the Company to reduce capital costs and
accelerate production timeline without the significant debt burden typically
associated with the move into production.

 

The PSA processing plant is planned to be initially installed at the Company's
Rudyard Project.  The Company has identified a plant site location near to
the Darwin #1 wellhead and near to existing natural gas facilities.  This
favourable location allows the Company to further reduce construction costs
and timeline by taking advantage of road connections and 3-phase power which
currently run to the plant gate.

 

The plant will be moved first to a site owned by Wikota Design &
Construction ("Wikota") for operational readiness testing.  An initial
inspection by Wikota indicated that the plant is in excellent condition
requiring only minor refitting.

 

The Company therefore anticipates that the plant will be ready to move on to
the identified plant location in Q2 2025, with production targeted to commence
shortly thereafter pending acquisition of front-end membrane units.

 

Reserve Statement and Financial Model

 

The Company has commissioned Aeon Consultants LLC to prepare a Reserve
Statement and Financial Model over the Rudyard field.  Aeon Consultants are
industry experts with 45 years of experience in economic analysis, production
optimisation and reserves estimation and evaluation.

 

As announced on 12 December 2024, drilling at Darwin #1 intersected target
reservoir horizons high on structure compared to historic drilling to the
west.  This demonstrated that Rudyard is a much larger structure than
anticipated and that the apex of the domal anticline is broader and further to
the east than previously interpreted.

 

Surveying has commenced on the Company's next drilling location to be called
Huntley #1.  The Company intends to drill up to five production wells on the
Rudyard structure in 2025, enhancing helium production and revenue from the
Xebec processing plant.

 

 

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 listed in April 2024 raising £7.5 million from an offer book
of over £22 million.

 

The Company has drilled two wells on two assets in 2024.  Darwin #1 well at
Rudyard Project tested 236ft in the Souris and Red River formations, flowing
2,750 Mcf/day at 1.1% helium.  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.

 

Clink #1 well at Ingomar Dome Project recovered gas samples from the Flathead
Formation assayed at 55.2% Hydrogen in gas sample isolated from drilling mud
and 2.5% helium in gas sample recovered from the reservoir.  Gas samples
demonstrate helium and hydrogen potential with additional stimulation required
to potentially generate commercial flow rates in Flathead and Charles
formations.

 

Helix Exploration is focussed on early production at the Rudyard Projects,
taking advantage of existing infrastructure and low-cost processing to target
first gas production in 2025.  Helix is committed to open and transparent
communication with investors and the wider market as the project progresses
through development into production.

 

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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