{"id":113612,"title":"Helix Exploration is ready for its London listing following an offer that was significantly oversubscribed.","publisher":"Share Talk","author":"sharetalk","published":"2024-04-06T09:55:02+00:00","modified":"2024-04-06T09:55:02+00:00","canonical_url":"https://www.share-talk.com/helix-exploration-is-ready-for-its-london-listing-following-an-offer-that-was-significantly-oversubscribed/","markdown_url":"https://www.share-talk.com/helix-exploration-is-ready-for-its-london-listing-following-an-offer-that-was-significantly-oversubscribed.md","json_url":"https://www.share-talk.com/helix-exploration-is-ready-for-its-london-listing-following-an-offer-that-was-significantly-oversubscribed.json","category":"Energy","categories":["Energy"],"tags":["David Minchin","Gregg Peters","Helium","Helix Exploration","IPO","Montana","North American","Saskatchewan","USA","Wyoming"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/04/Helix-Exploration.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"Helix Exploration PLC has announced that its Initial Public Offering (IPO) received an enthusiastic response, with investors showing a willingness to invest £22 million, significantly more than the targeted £7.5 million. This includes commitments from institutions, family offices, and high net-worth individuals.\n\nGiven the current challenging market conditions, with few new listings and limited growth capital, the success of this IPO is particularly noteworthy.\n\nTo avoid excessive dilution and possibly to maintain a vibrant post-IPO market, Helix decided to collect only the initially intended amount.\n\nWith a pre-IPO value of £4.27 million, [Helix is set to debut on the AIM market](https://www.helixexploration.com/) with an estimated market capitalization of about £12 million.\n\nThe company’s potential lies in its helium exploration and development projects in Montana, USA, with plans to become a key helium producer. Helix controls 52 leases in the “Montana Helium Fairway,” featuring promising geological formations and a substantial P50 resource estimate of 2.3 billion cubic feet. Past drilling has confirmed the presence of gas across all targeted layers.\n\nGiven the severe shortage and increasing demand for helium, especially in high-tech sectors, Helix’s venture is timely.\n\nThe CHIPS act, promoting U.S. chip manufacturing with US$39 billion in incentives, is expected to further boost domestic helium demand, crucial in semiconductor production.\n\nDavid Minchin, the chairman, emphasizes the significance of the CHIPS act and the advantageous timing and location of their operations.\n\nMinchin, with a successful track record as Helium One’s ex-CEO, and CEO Bo Sears, a 25-year industry expert, lead Helix. Sears was pivotal in establishing Canada’s first Grade-A helium project and assembling Helix’s land assets. Non-executive director Gregg Peters brings valuable experience from his time at Linde-Praxair, while Keith Spickelmier adds expertise from his background in the energy sector.\n\nHelix’s near-term plans include constructing a processing facility capable of producing about 55 million cubic feet of helium annually, aiming for production by Q4 2025.\n\nThe company’s immediate strategy involves drilling an appraisal well at Ingomar Dome in Montana, focusing on the Flathead Formation, with helium expected in nitrogen-rich areas.\n\nThe well, reaching a depth of approximately 8,000 feet, aims to assess helium concentrations, with over 0.5% deemed commercially viable.\n\nThe appraisal will guide future production well design and update reserve estimates, at an estimated cost of US$2.5 million.\n\nFuture plans also include establishing a processing plant, projected to cost US$12.5-US$15 million.\n\nMinchin discusses leasing equipment and owning transport tankers to reduce capital needs and maximize sales profits.\n\nWith a current market cap of £12 million, Helix, though smaller than some competitors, is positioned for growth, especially considering its targeted production rate.\n\nComparatively, New Era Helium, valued at around US$90 million, targets a lower production rate.\n\nMinchin explains the decision to not raise more than £7.5 million was to maintain a controlled share distribution and limit dilution, reflecting confidence in Helix’s potential and market positioning."}