Mendell Helium (MDH: AIM) has arguably changed more than its modest market profile might suggest since March. The company completed its move to AIM on 16th June, having raised £5 million in April to accelerate development of its Kansas assets.
At admission, its subsidiary M3 Helium held interests in twelve wells, six of which were already producing, giving Mendell an operating base rather than a purely exploration led starting point.
The biggest change has come at Rost 2. After installing an electric submersible pump, the well was dewatering at around 1,100 barrels per day by September and had begun bringing gas bearing fluids to surface. Two preliminary gas samples returned helium concentrations of 10.7% and 10.9%, more than double the approximately 5.1% consistently measured at Rost 1. Those readings are potentially significant, but they remain preliminary, and the key question is still whether Rost 2 can sustain meaningful gas flow once sufficient water has been removed.
The wider Fort Dodge operation is also beginning to broaden. Rost 1 resumed production after tubing replacement and scheduled maintenance, while Schneweis Ventures 13A has started producing under its own pressure and feeding gas directly into a joint venture partner’s pipeline. Schneweis has so far recorded peak daily gas sales of 428 Mcf, while historic testing showed helium at 1.39%. Mendell has also acquired more than nine square miles of 3D seismic data to help select locations for further production wells.
Infrastructure may ultimately be as important as the helium grades themselves. The Brobee disposal well is permitted to handle up to 10,000 barrels of water per day, giving Mendell the ability to dewater Rost 1, Rost 2 and potentially additional nearby wells without having to build an entirely new disposal system. Combined with existing pipelines, producing wells and nearby processing routes, that gives Fort Dodge a different starting point from many greenfield helium projects. The next step is now very clear, prove that the high helium concentrations at Rost 2 can be matched by sustainable commercial gas flow and that the growing group of wells can translate into steadily increasing production.
