Mendell Helium (LON: MDH) has reported helium concentrations of up to 11.5% from the latest gas sample taken at its Rost 2-26 well in Kansas, with concentrations increasing across recent analyses.
The company said the results recorded during early de-watering have been consistently encouraging, although gas volumes remain low at this stage. Mendell stressed that the 11.5% figure measures the concentration of helium within the gas and does not indicate the eventual volume of gas or helium production.
Rost 2 is currently producing under conditions consistent with an undersaturated brine system. Mendell plans to continue de-watering and is evaluating whether hydraulic fracture stimulation could materially increase gas volumes and helium recovery.
The well has currently been perforated and acid-stimulated across around 20 feet of reservoir, but the company is preparing a potential multi-stage frack programme covering hundreds of feet across the Morrow and possibly Mississippian formations.
If stimulation proceeds, higher water production could require an upgraded pump capable of handling up to approximately 10,000 barrels per day. Mendell said it is fully funded for any additional work at Rost 2.
Elsewhere, the Schneweis Ventures 13A well continues to flow under its own pressure into a pipeline operated by joint-venture partner Ritchie Exploration. Gas production has reached a peak of around 700 Mcf per day, although rates remain variable during de-watering.
For investors, the standout figure is the 11.5% helium concentration, which is exceptionally high compared with many commercial helium projects. The key next question, however, is whether Mendell can convert that strong gas composition into sustained and economic production volumes, making the outcome of de-watering and any subsequent stimulation programme the major near-term catalyst.
