Helix Exploration is a helium exploration company with operations in Montana, North America, which aims to discover and develop new sources of primary helium.
#HEX In the leadup to drilling Ingomar, our first of two Q3 helium drills, #HelixExp Chairman David Minchin speaks to Crux Investor.
He dives deep into the prospectivity of our assets and our strategy to deliver shareholder value.
Click here to watch:
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This is coming into news territory. At a third of the cap of HE1, and a far better share register and dilution, the drill anticipation should start really soon.
Helix Exploration, the helium exploration and development company focused on helium deposits within the ‘Montana Helium Fairway’, is pleased to announce that, further to the announcement on 22 July 2024, drilling of the Clink #1 well on the Ingomar Dome project area in Montana has commenced.
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Results
Helix has successfully tested target reservoirs at Darwin #1 in the Souris and Red River intervals. All reservoirs were tested simultaneously in a single perforation over 236ft from 5,000ft to 5,100ft and 5,140ft to 5,276ft. The perforation therefore also tested potential fracture porosity observed occurring between the main target reservoirs.
The well flowed immediately after perforation without the need to swab or stimulate. Build-up pressure between each flow period was close to initial shut in pressure indicating good permeability and little, if any, wellbore damage.
Testing delivered highly encouraging results, flowing 2,750 Mcf/d of raw gas on a 40/64" choke. Extended flow testing determined an absolute open flow of over 4,500 Mcf/d, confirming Darwin #1 as a strong producer. With good permeability each well could be capable of draining a large area.
Both Souris and Red River intervals were found higher on structure to historic drilling to the west. This demonstrates that Darwin #1 was drilled ‘up-dip’ of historic wells, meaning that the apex of the domal anticline is broader and further to the east than previously interpreted. This suggests that Rudyard is a much larger structure than previously modelled.
Samples of gas were sent to Isotech Laboratories in Illinois for analysis and returned 1.1% Helium and 95% Nitrogen with very low levels of Methane and no significant CO2 or water. The gas mix observed would be suitable for a low-cost membrane / pressure swing adsorption (“PSA”) plant, allowing Rudyard to be fast tracked to production utilising existing infrastructure on site including three-phase power, road and rail transport connections.
At conservative sustained flow rates of 2,000Mcf/day raw gas, 1.1% helium grade, and a helium sales price of $500/Mcf, production from the Darwin #1 would generate pre-tax cashflow of circa $4,000,000 per well per year. The Company controls the entire anticline in its leasehold and has the opportunity to place several producing wells within the Rudyard field and estimates production well costs of $1.2m per well. Therefore, Rudyard passes the Company threshold to declare an economic discovery with potential to repay well-field and process plant capital within a reasonable timeframe and allow excess cash-flow to be re-invested or distributed.
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Looking like this could be the helium stock to be in for 2025.