Helix Exploration PLC (AIM:HEX) chairman David Minchin talked with Proactive about the company's latest update on its Rudyard project in Montana, where drilling has officially begun.
Minchin explained the company’s recent spudding at the site is aimed at confirming commercial helium in the Red River and Swath intervals.
He highlighted that the Rudyard project has a contingent resource of approximately 480,000 MCF, with an additional 110,000 MCF estimated in the untested Dry Creek formation.
According to Minchin, the goal of this drilling is to confirm sustained flow rates, potentially upgrading the resource to reserve status for future commercial development.
Proactive: Exciting news out today about the company. You’re beginning drilling at the Rudyard project in Montana. I know you've recently completed road access. Now you’re starting the actual drilling, which is exciting. Could you remind everyone about that project?
David Minchin: We’ve just spudded our first target at the Rudyard project area. This is an appraisal well, testing an already confirmed helium discovery with known commercial grades and flow rates. The project has a contingent resource of about 480,000 MCF in the Red River and Swath intervals, with an additional 110,000 MCF in the untested Dry Creek. This drilling will help confirm sustained flow rates, potentially upgrading our resource into a reserve for commercial development.
Proactive: The source in the Red River intervals was also mentioned in your recent news release. There’s been historical work done here, right?
David Minchin: Yes, that’s correct. There have been two wells drilled on a block adjacent to where we’re currently working. We've expanded our land package to over 6,000 acres because we see a lot of potential in this project. We’re excited to get the drill bit turning and look forward to reporting results in the next few weeks.
Proactive: You’ve also done work at Clink #1, which will take about two to three weeks to finish up. What kind of data will this provide for your next steps?
David Minchin: Clink is progressing well. We’ve installed the wellhead and demobilized the rig for testing. We’ll run wireline towards the end of this week and start perforations the week after. We’re also using a pulse neutron tool to identify where to begin extended flow tests. Our first target will likely be the flathead formation, where we’ve observed high levels of helium and hydrogen, reaching up to 10.3% in mud. We hope to announce our gas compositions and, ideally, a discovery in the coming weeks.
Proactive: Sounds like exciting times ahead. Thank you, David, for the update. It seems we’ll have you back soon to discuss the results.