Mendell Helium plc has announced progress in its US operations, with subsidiary M3 Helium Corporation agreeing to recomplete the Schneweis well in Kansas in partnership with Ritchie Exploration.
The plan is to apply a proven de-watering technique, previously used at the Rost 1-26 well, to restore and enhance production. Historically, Schneweis produced over 300 Mcf/day, while drill stem tests have indicated potential flow rates exceeding 10,000 Mcf/day.
M3 Helium will fully fund the recompletion and a new disposal well, securing an initial 85% net profit interest, which will reduce to 70% after cost recovery. Ritchie retains an option to increase its stake to 50%.
The well is already connected to pipeline infrastructure, enabling the sale of both helium and hydrocarbons, with measured gas composition including 1.39% helium and 70.06% methane.
Separately, Mendell has extended its option to acquire M3 Helium to April 30, 2026, providing additional time to advance the project and assess its potential.
Highlights
· Schneweis historically produced in excess of 300 Mcf/day before water constrained production
· M3 Helium believes the well is suitable for the same de-watering technique successfully employed at its Rost 1-26 well (“Rost”)
· M3 Helium will fund a new disposal well and recompletion of Schneweis in return for an initial 85% net profit interest in the project
· If successful, the parties may work together on further Ritchie operated wells
· Schneweis is connected to a pipeline, owned by Ritchie, so there is no requirement for helium purification facilities at surface and production revenues may include hydrocarbons as well as helium
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “We are delighted to report the collaboration between M3 Helium and Ritchie Exploration. The de-watering successfully employed at Rost has provided a pathway to redeveloping other parts of the Fort Dodge region and, specifically, previously operational wells that have been shut in.
“Partnering with Ritchie Exploration, one of the largest oil & gas producers in Kansas, is a powerful validation of the potential of the Fort Dodge region and M3 Helium’s operations. Assuming that the recompletion of Schneweis is successful, then we hope that M3 Helium’s relationship with Ritchie Exploration may extend to further wells in the region.
“It is also important to note the value of access to a pipeline for Schneweis. With no need for complicated surface purification facilities, we expect the production time, once work begins, to be considerably shorter and more economical than it has been for Rost.”
