Mendell Helium asks investors to back £5m raise

The fundraising involves the issuance of 125 million new ordinary shares at 4p each, with proceeds earmarked to accelerate development in the Fort Dodge area. Planned activities include land leasing, drilling and recompletion of wells, and expansion of helium purification infrastructure.

The acquisition of M3 Helium is expected to be completed following shareholder approval. The asset has already demonstrated production, with helium concentrations of 5.1% and flow rates of 250 Mcf per day from the Rost 1-26 well, providing a near-term operational platform.

Mendell’s broader Fort Dodge portfolio is estimated to contain prospective helium resources ranging from 2.12 billion cubic feet (BCF) to 9.78 BCF, with a potential in-ground value of approximately $636 million to $2.93 billion.

Overall, the transaction and capital raise are designed to transition the company toward scaled production and infrastructure build-out, leveraging both existing output and significant resource upside.