Helix Exploration, the helium exploration and development company focused on helium deposits within the 'Montana Helium Fairway', announces its unaudited interim results for the six month period ended 31 March 2024.
Chairman's statement
I am pleased to announce Helix Exploration's maiden interim results. This is the Company's first interim results since the Company's successful admission to the AIM market of the London Stock Exchange on 9 April 2024 and covers the pre-IPO period to 31 March, 2024.
We decided to list in London because we believe it is the pre-eminent market for growth resource companies with a deep pool of investors, talent and a high standard of governance. London remains a world leading capital market for small-cap companies, and I am delighted to have been a part of bringing Helix Exploration to the London market.
Without the capital provided by our shareholders at the IPO, we would not be able to achieve our strategic aims and focus on early production at the Ingomar Project. Drilling at Ingomar is on target to commence in Q3 2024. A 30-day flow test of the appraisal well is anticipated to give sufficient technical data for the Company to commence detailed plant engineering and construction with a target for first gas before the end of 2025.
Our recent acquisition of Rudyard represents an important opportunity for Helix Exploration. It is a proven helium discovery with 480 million cubic feet of Contingent Resources that have an in-situ value of >$250m. Expanding our helium portfolio is a strategic priority and this acquisition represents an exciting addition that complements our flagship Ingomar Dome Project. It is a testament to the Helix team and the deep experience of our CEO Bo Sears that we were able to secure Rudyard for a total consideration of only $250,000, and that the majority of this consideration was paid in shares.
I would like to thank stakeholders who have supported the Company throughout the listing process and beyond.
The helium market
Helium is critical in our modern world, its applications for high technologies are indispensable in a number of applications including in the medical sector, high-tech manufacturing, defence, rocketry, computing, aerospace and multiple others. The sector is experiencing sustained demand growth over a number of years, driving the price of helium to grow at 20% CAGR over the last decade. Due to the acceleration in the technology sector, demand for helium is continuing to increase, with the current levels of supply unable to keep up, new sources of helium are required to balance the market.
Strategy
Helix is focused on the exploration and development of helium deposits within the 'Montana Helium Fairway', which extends from Wyoming USA to Saskatchewan Canada and hosts several known helium occurrences including production in Canada from the Weil Group and North American Helium. Ingomar represents a large anticlinal closure of 16,512 acres mapped at surface, in seismic and in drilling, located on the upthrown side of the deep-seated Sumatra Thrust.
Our strategic focus is on appraisal and early production at Ingomar Project. Drilling is targeted for Q3 2024, and first helium production targeted for Q4 2025. We remain committed to open and transparent communication with investors and the wider market as the project progresses through development.
Operations and Outlook
We have had a busy and exciting few months since listing on AIM. In April 2024 we announced a strategic partnership with Petroleum Consultants, LLC, the execution of this contract marked the initiation of our Phase 1 Work Programme and the first steps towards the delivery of a safe and successful drilling campaign in Q3 2024. Petroleum Consultants have extensive operational experience within Montana and across the wider United States, particularly in managing exploration activities throughout the Rocky Mountains region.
At the end of April 2024, Helix announced it had executed a binding contract with Treasure State Drilling, LLC for the provision of their Cardwell KB-150 D1D Drilling Rig and equipment for the Company's Q3 2024 appraisal drilling campaign at the Ingomar Dome project. The services of Treasure State Drilling forms a highly competent team boasting decades of combined experience in helium exploration and Rocky Mountain drilling. With these essential components in place, Helix is well positioned for the commencement of drilling at Ingomar Dome in Q3 2024.
In June 2024, the Company announced the results of a Scoping Study Economic Analysis conducted by Aeon Petroleum Consultants Corporation. The report demonstrated the potential for exceptional economic returns across a range of modelled scenarios with baseline results calculated as NPV8 of $303.1 million using a helium price of $550/Mcf and grade of 1.50% He and initial CAPEX requirement of only $19.7 million. The Ingomar Dome Project is estimated to generate net revenue of $605.6 million after CAPEX, OPEX, tax and royalty over a 29-year life of mine.
Also in June 2024, the Company announced the execution of a Farm-In agreement whereby the Company acquired a 100% working interest in Rudyard Project covering 5,600 acres in Hill County, Montana. Rudyard represents the acquisition of a discovery with previously identified up to 1.3% Helium flowed to surface from two wells drilled adjacent to the acquired leases. Rudyard has gross Contingent Resources of 484 million cubic feet of helium with in-situ value of >$250 million at helium price of $550/Mcf.
We expect the next six months to be an incredibly busy period of growth and we look forward to drill testing the Ingomar Dome Project and Rudyard Project with a drilling campaign in Q3 2024. We will provide the market and our shareholders with updates on results of drilling, flow tests and updated economic model as exploration and appraisal progress on the two project areas. We continue to work towards our goal of first gas flow before the close of 2025.
David Minchin
Chairman
The Directors of the Company are responsible for the release of this announcement.