REG - Helix Exploration - Agreement to Acquire TSD LLC and Drilling Rig

Helix ExplorationAnnouncement

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RNS Number : 3622H  Helix Exploration PLC  08 June 2026

8 June 2026

Helix Exploration PLC

 

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

 

Agreement to Acquire Treasure State Drilling LLC and Drilling Rig

 

Helix Exploration PLC (AIM: HEX, OTCQB: HEXFF), the helium exploration and
development company advancing the Rudyard Helium Project ("Rudyard") in
northern Montana, is pleased to announce it has entered into a purchase and
sale agreement to acquire 100 per cent of the membership interests of Treasure
State Drilling LLC ("TSD") ("Acquisition"), a Montana-based drilling company,
for total consideration of US$600,000, to be satisfied entirely by the
issuance of new ordinary shares of 1 pence each ("Ordinary Shares") in Helix.
The primary asset held by TSD is the drilling rig which has drilled all of
Helix's existing Rudyard production wells. The Acquisition will give Helix
complete control over rig access.

 

Highlights

•  Acquisition of 100 per cent. of TSD for US$600,000 paid wholly by the
issuance of new ordinary shares in the Company meaning zero cash consideration
being paid.

• Consideration paid represents a 37 per cent discount to the independent
equipment appraisal of US$955,900 conducted by Enneberg Excavation LLC, a
qualified engineering firm with over 22 years of Montana oilfield operations
experience.

•  Removal of contract day rates on all future drilling at Rudyard - a
direct and material reduction in per-well drilling costs with effect from
completion.

•  Removal of mobilisation and demobilisation costs: TSD's rig is already
positioned on site at Rudyard with no transport, rigging up, or rigging down
costs required for the next well.

•  TSD's rig drilled all of Helix's existing Rudyard production wells and
immediately deployable for further drilling.

•  Rig rated to 8,000 feet depth capable to drill Rudyard's Souris and Red
River target formations and fully equipped for Helix's wider Montana
exploration programme.

•  Key rig assets include an 800 HP Emsco mud pump, dual generator sets
providing over 1,300 kW of power, and more than 22,000 feet of drill pipe
inventory across multiple string sizes.

• The directors believe that, TSD's rig is the only drilling rig currently
available in north-central Montana a region characterised by numerous oil and
gas prospects and a growing operator base.

• Following Closing (as defined below), Helix intends to evaluate
opportunities for TSD to undertake third-party contract drilling work when the
rig is not required for Helix's own drilling programme. No third-party
drilling contracts have been entered into and no revenue from third-party
activity should be assumed at this stage.

 

Strategic Rationale

Owning a drilling rig represents a meaningful and permanent structural shift
in Helix's cost base and operational control. In contract drilling, operators
pay a day rate for rig usage regardless of whether the rig is actively
drilling, on standby, or rigging up and down. These costs accumulate
materially across a multi-well programme. By acquiring TSD outright, Helix
removes this cost layer entirely with effect from Completion on future wells
drilled at Rudyard and eliminating rig availability risk.

Equally significant is the elimination of mobilisation and demobilisation
costs. Moving a drilling rig to a new location and subsequently moving it off
involves substantial expenditure in logistics, transport, rigging, and
associated downtime. TSD's rig is currently located at Rudyard, already
positioned for the Company's next well. The acquisition ensures those costs
are avoided entirely on all future Rudyard drilling activity.

Rig availability is a further strategic consideration. In active basins,
drilling rigs are frequently committed to other operators, and companies must
often wait months for a contracted rig to mobilise. Ownership eliminates this
risk entirely. Following Completion, Helix can initiate drilling activity on
its own timeline, respond to operational opportunities without constraint, and
manage future drilling programmes as an integrated part of its production and
development strategy.

 

A Standalone Commercial Opportunity

To the Board's knowledge, TSD's rig is the only drilling rig currently
available in north-central Montana - a region that is home to numerous oil and
gas operators and characterised by a diverse landscape of hydrocarbon
prospects, including many smaller oil fields with the potential for
exploration and development activity.

TSD will operate as a wholly owned but commercially independent subsidiary of
Helix. In that capacity, TSD and its experienced crew are available for hire
by area operators on a conventional contract drilling basis. The Board
believes that the combination of TSD's rig being the only available unit in
the region, an experienced crew with local knowledge, and a high oil price
environment that may incentivise increased exploration and development
activity across north-central Montana, creates a potential commercial
opportunity for TSD as a standalone drilling business.

The Board emphasises that no third-party drilling contracts have been entered
into, and no revenue from third-party activity should be assumed. However, the
Board believes the conditions exist that could, over time, allow TSD's rig to
generate contract revenue sufficient to be substantially self-funding. This
potential - which is entirely additive to TSD's primary value to Helix as its
captive drilling resource is not reflected in the consideration being paid for
TSD.

 

The Rig

TSD's drilling rig is a Cardwell KB-150, rated to 8,000 feet depth -
suitable for Helix's Rudyard target formations in the Souris and Red River,
which sit comfortably within that depth capability. TSD has been the sole
drilling contractor for all activity at Rudyard to date, having drilled each
of the Company's four production wells. The rig crew's familiarity with
Rudyard's wellbore conditions, formation characteristics, and operational
requirements represents a further practical and time-saving advantage.

The rig package includes dual generator sets providing more than 1,300 kW of
on-site power generation, an 800 HP Emsco mud pump, two Bomco F-1000 mud
pumps, and more than 22,000 feet of drill pipe inventory across multiple
string sizes - providing full redundancy and flexibility for the Company's
future drilling plans. The package also includes a Western Star semi winch
truck, support vehicles, and a comprehensive complement of ancillary drilling
equipment.

The aggregate appraised value of TSD's assets was independently assessed by
Enneberg Excavation LLC  a qualified engineering firm with over 22 years of
direct experience in Montana oilfield drilling operations  at US$955,900 on a
conservative, low-end actual cash value basis. Helix is acquiring this full
rig package for US$600,000.

 

Transaction Structure

The Acquisition will be effected through the purchase of 100 per cent. of the
membership interests of TSD. Consideration of US$600,000 will be satisfied
entirely by the issuance of new Ordinary Shares in Helix Exploration PLC at a
price determined by reference to a 20 day VWAP of Helix shares from date of
signing of the purchase and sale agreement to the shareholders of TSD
("Sellers"). Completion of the Acquisition is subject to the satisfaction or
waiver of certain standard conditions. The Sellers have also undertaken to
settle existing liabilities owed by TSD.

 

Bo Sears, Chief Executive Officer of Helix Exploration PLC, commented: "Owning
our rig is a game-changer for Helix. Every well we drill from this point
forward will be drilled without a day rate invoice and without a mobilisation
bill. Those are real costs that every E&P operator in our position absorbs
on every well - and we have just eliminated them. Permanently.

"The economics of this transaction are straightforward. We are paying
US$600,000 - entirely in shares - for an asset package that an independent
qualified appraiser has assessed at close to US$1 million. And in return, we
eliminate what would otherwise be a meaningful recurring cost on every future
well we drill. We believe this is an excellent outcome for Helix shareholders.

"The strategic value goes beyond Helix's potential future drilling programmes.
To my knowledge, this is the only drilling rig currently available in
north-central Montana. That matters. The area is rich in oil and gas
prospects, and with oil prices where they are today, we believe there is the
potential for increased exploration and development activity across the
region. TSD and its crew are available for hire. We have not yet entered into
any third-party contracts yet - but the commercial opportunity is real, and we
believe it has the potential to make this rig substantially self-funding. We
potentially getting our captive drilling capability at no net cost to the
business in the medium term, and potentially at no cost at all.

"This rig has already drilled all four of our Rudyard wells. It knows our
field, it knows our crew, and it is sitting on site right now. We are ready to
go."

 

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 PLC

 Bo Sears
 Keith Spickelmier  info@helixexploration.com

Cairn - Nominated Adviser

 Liam Murray          +44 (0)20 7213 0880
 Ludovico Lazzaretti
 James Western

Hannam & Partners - Broker

 Neil Passmore  +44 (0)20 7907 8502
 Leif Powis

 

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.

Helix is focused on production at its Rudyard Project in northern Montana,
taking advantage of existing infrastructure and low-cost processing to target
first gas in 2025. The Company has four production wells targeting up to 236ft
Helium / Nitrogen gas in the Souris and Red River formations, flowing up to
3,800 Mcf/day at 1.2% helium. Rudyard field can support multiple production
wells and has potential to generate net revenue of $115-$220 million over a
12.5-year life of field.

Helix is committed to open and transparent communication with investors and
the wider market as the project progresses through development into
production.

"Our approach is simple: build scale efficiently, develop resources
strategically, and deliver near-term cash flow."

Bo Sears, Chief Executive Officer

 

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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