Mendell Helium (AQSE: MDH) update’s on its Fort Dodge, Kansas and Nebraska operations

Update on Fort Dodge and Nebraska operations

Mendell Helium is pleased to provide an update on M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well in Fort Dodge, Kansas (“Rost”) and the Jasper well in Nebraska.

Highlights

·    Rost Well, Kansas: Preparations for de-watering are progressing, with first operations expected to commence in early September 2025.

·    Jasper Well, Nebraska: Operations are underway. Drilling  is expected to be completed by the end of August 2025. If successful, the Jasper Well may be able to support a future Bitcoin mining project.

As announced on 27 June 2024, the Company has an option (the “Option”) to acquire M3 Helium, a producer of helium which is based in Kansas and holds an interest in eleven wells.  There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.

Fort Dodge, Kansas

The four water tanks which are to be positioned between Rost and the Brobee salt water disposal well (“Brobee SWD”) have arrived on site and the catwalk between them has been installed. The remaining items of major equipment are the triplex pump for the Brobee SWD and the separator and knock-out (which together separate any liquids from the gas stream). These are anticipated to be delivered either during next week or by early September 2025.

With delivery times confirmed and the larger items already in place, M3 Helium continues to expect de-watering operations to commence in the first half of September 2025.  The project overall remains under budget.

Once Rost is operational, M3 Helium will connect the pressure swing adsorption (“PSA”) unit that is already on site which will purify the produced helium.  The most efficient level of purity will be determined once production begins but, as a guide, M3 Helium is expecting to ship helium at around 75 per cent. purity.  M3 Helium has secured delivery of a Bauer compressor, expected on site in mid-September 2025, which will be used to load tube trailers with gas from Rost. 

A significant advantage of Rost is that its helium composition has been tested at 5.1 per cent. and furthermore, with 85 per cent. nitrogen, hydrocarbon levels are low.  M3 Helium has identified an off-taker prepared to receive the raw gas from the well and management are currently assessing whether it will be economic to ship a 5 per cent. helium mix to the off-taker’s site. On the basis that it is, M3 Helium may be in a position to commence helium sales before the PSA has been connected.

Nebraska

Mendell Helium is also pleased to confirm that operations have commenced at the Jasper well.  In line with M3 Helium’s policy of tight cost management, a small amount of casing was sourced from another discontinued operation which will further assist in what is already a low budget project.

At less than 2,000 feet in depth, testing of the Jasper well, including lease acquisition and drilling costs, is expected to cost less than US$100,000.  M3 Helium continues to expect drilling to complete by the end of August 2025 and the results of this exercise will determine the location’s suitability for Bitcoin mining.

During the onsite preparations, the path of a fibre optic cable was found to be just a few yards from the lease boundary, which, if it can be easily accessed, will enhance the location’s appeal for a Bitcoin mining operation.

Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “In what has been a very busy week for M3 Helium, it is pleasing to report that M3 Helium remains on track for the two ongoing projects in Kansas and Nebraska.  The logistical exercise of assembling the final surface equipment for Rost is coming together and timings for the Jasper well are just as planned.  We are entering a very exciting time for M3 Helium, and I look forward to providing updates on the projects.”

Engage with the Mendell Helium management team directly by asking questions, watching video
summaries and seeing what other shareholders have to say. Navigate to our Interactive Investor
website here: https://mendellhelium.com/s/a6a55a

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

Enquiries: