Helix Exploration PLC (AIM:HEX, OTCQB:HHEXF) has raised £4.5 million from institutional investors to advance its helium development programme in northern Montana, following encouraging flow test results from its latest production well.
The AIM-listed explorer secured funding through a share placing at 16p, a slight discount to Tuesday’s closing price, with significant backing from a major private family office managing over $1 billion in assets, alongside other institutional investors.
The £4.5 million raised will fund the drilling of two additional wells and the construction of surface processing infrastructure, with the goal of achieving first helium production by the end of the summer.
Highlights:
· Placing and subscription (together the “Fundraising”) of 28,125,000 new ordinary shares of 1 pence each (“Ordinary Shares”) at a price of 16 pence per share (“New Shares”), raising gross proceeds of £4.5 million from a large private family office and other institutional investors
· Weil #1 sustained flow rates at 2,300 thousand cubic feet per day (Mcf/d) of raw gas at 32/64″ at Weil #1
· High grade helium assayed at 1.0% helium with the balance being primarily nitrogen
· Helix has now tested three production wells with capacity to generate pre-tax cashflow of circa twelve-million dollars a year[1] in line with projections
· Two new production wells to be drilled, potentially allowing pre-tax cashflow of $20 million per year in the first six months of production
· Fourth production well Inez #1 to commence mobilisation next week
· Hannam & Partners have acted as sole bookrunner and broker in connection with the Fundraising
Chief executive Bo Sears described the latest flow test at the Weil #1 well as delivering “exceptional results,” noting that the data “firmly establishes the Rudyard field as a robust, near-term helium-producing field.” The test showed sustained flows of 2,300 thousand cubic feet per day of raw gas, including 1% helium.
With three wells successfully tested, Helix estimates the project could generate approximately $12 million in annual pre-tax cash flow, rising to $20 million within six months once the fourth and fifth wells are brought online.
Drilling at the next site, Inez #1, is scheduled to start next week. All five wells are expected to enter production later this summer following the installation of on-site processing facilities.
