Helix Exploration, the helium exploration and development company with near-term production assets within the ‘Montana Helium Fairway’, is pleased to announce the results of flow testing at Linda #1 well in Rudyard Project, Montana.
Highlights:
· 218ft of Linda #1 perforated simultaneously, testing Souris and Red River reservoir horizons.
· Flow rates sustained at 3,850 thousand cubic feet per day (Mcf/d) of raw gas at 40/64″ choke which is 40% above the flow rates reported at Darwin.
· High grade helium assayed at 1.2% helium with the balance being primarily nitrogen
· Linda #1 has capacity to generate pre-tax cashflow of c.USD$4m a year[1] in line with projections.
Bo Sears, CEO of Helix Exploration, commented:
“The Linda #1 result confirms that the Rudyard Field is not only productive – it’s scalable. With exceptional flow rates, a large structural footprint, and strong early gas quality, we now have a foundation to build a long-life domestic helium supply project. We intend to move forward with development quickly and efficiently.
“As we advance toward first production at the Rudyard Field, Helix continues to distinguish itself as a nimble, focused helium company positioned to meet the needs of a market undergoing structural change. Our near-term production, strong reservoir performance, and low-cost operating model position us to fill critical supply gaps at a time when diversified and reliable sources of helium are increasingly valued. We believe the shifting dynamics in the global helium supply chain only reinforce the strategic importance of new North American entrants like Helix, and we are committed to capitalising on this moment to deliver long-term value to shareholders.”
Background
Helix has successfully tested target reservoirs at Linda #1 in the Souris and Red River intervals. All reservoirs were tested simultaneously in a single perforation over 218ft from 5,074ft to 5,292ft, including testing potential fracture porosity observed occurring between the main target reservoirs.
The well flowed immediately after perforation without the need to swab or stimulate, an indication of good natural reservoir quality and pressure. Build-up pressure between each flow period was close to initial shut in pressure indicating good permeability and little, if any, wellbore damage.
Testing demonstrated excellent deliverability, flowing 3,850 Mcf/d of raw gas on a 40/64″ choke or approximately 40% higher flow rate than achieved at Darwin #1. Extended flow testing determined an absolute open flow of over 4,700 Mcf/d, confirming Linda #1 as a strong producer.
These results expand the Company’s view of the Rudyard Field’s potential. The superior performance of Linda #1 is attributed to greater natural fracturing and porosity. If flow performance continues to improve towards the south this suggests a compelling development trend across the structure.
Based on cumulative flow data, lateral extent, and undeveloped drilling inventory, Helix believes that the Rudyard Field could represent one of the largest new single field helium discoveries in North America in recent years.
Samples of gas were sent to Isotech Laboratories in Illinois for analysis and returned 1.2% Helium and 96% Nitrogen with very low levels of Methane and no water or material CO2. The gas mix observed is similar to gas seen at Darwin #1, indicating a continuity of grade across the Rudyard closure.
At conservative sustained production rate of 2,000 Mcf/day raw gas, 1.2% helium grade, and a helium sales price of $500/Mcf, production from the Linda #1 would generate pre-tax cashflow of circa $4,000,000 per year, in line with base-case modelling, demonstrating the scalability of production at Rudyard and robustness of our economic forecast.
The work-over rig and testing equipment have now moved to Weil #1 well situated circa 1.3 miles NW of Linda #1. Testing at Weil #1 is expected to commence shortly with results due to be reported alongside gas sample laboratory results in early June.
Qualified Person Statement
The technical information contained in this disclosure has been read and approved by James Weaver, P.E., who is a qualified Petroleum Engineer and acts as the Qualified Person under the AIM Rules – Note for Mining and Oil & Gas Companies. James Weaver is the Chief Executive Officer for Aeon Petroleum Consultants Corp. which has been retained by Helix Exploration plc to provide technical support.
Enquiries
Helix Exploration
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Bo Sears |
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David Minchin |
