Mendell Helium Plc (AQSE:MDH) told investors that M3 Helium Corp, which it has an option to acquire, has secured two additional producing wells in the Hugoton gas field, located in Kansas.
The two producing wells currently yield a combined 25 Mcf/day, containing approximately 0.6% helium. The acquisition involved no consideration payment. It also acquired a non-producing well in the deal.
"Today's acquisition is a further example of the progress that M3 Helium is able to make due to its connections in the Kansas region,” chief executive Nick Tulloch said in a statement.
“Whilst these are not going to be significant producing wells, the incremental production they will provide M3 Helium is at minimal cost.
“There is no obligation to spend any funds on the wells but, once the management evaluate the potential advantages of a disposal well, M3 Helium will be able to assess the ecomomics of extending their production capabilities."