Helix Exploration PLC (AIM: HEX, OTCQB: HEXFF) has spudded the Ollie #1 well at its Rudyard helium field in Montana, as the company moves to expand production from the project.
Ollie #1 is intended to become the fourth production well in Rudyard’s Northern Dome, joining Darwin #1, Linda #1 and Weil #1, all of which have produced commercial-grade helium and are connected to the gathering system feeding Helix’s PSA processing plant.
The well is targeting the same proven Souris River and Red River formations and is located around one mile north of Weil #1.
Ollie #1 is expected to reach a total depth of approximately 5,500ft, with drilling anticipated to take around 21 days. This will be followed by wireline logging, extended flow testing and gas analysis.
Subject to successful testing, Helix plans to connect Ollie #1 into the existing gathering system at Weil #1 and process production through the PSA plant within its current membrane capacity.
Chief executive Bo Sears said Ollie #1 represents the next stage of the company’s Rudyard production expansion programme. Helix is also planning the purchase and installation of an additional membrane designed to increase processing throughput and potentially support higher sales volumes.
The company is already surveying several further helium well locations for drilling after Ollie #1, while ownership of its own drilling rig gives Helix greater operational control over the pace of field development.
The next key catalysts will be completion of Ollie #1, flow-test results, helium concentration data and confirmation that the well can be tied into commercial production.
