HeLIX Exploration PLC (AIM:HEX) earlier this week updated investors on its ongoing exploration activities. CEO Bo Sears spoke with Proactive about recent developments at the Clink #1 well in Ingomar Dome and provided insight into upcoming plans.
The company reported test results from the Amsden formation, noting it was a secondary target.
Sears emphasized, “We are in no way despondent. We're very happy with the progress we've made.” He pointed to significant gas shows in the Flathead and Charles formations, which could indicate promising helium and hydrogen resources.
Here we take a closer look at what was said.
Proactive: Bo, very good to speak with you. You've released some results from test work on the Amsden formation at the Clink #1 well at Ingomar Dome. This is a secondary target, right?
Bo Sears: That's correct. Although these results in the Amsden are not what we hoped for, it is very much a secondary, even a tertiary target.
We are in no way despondent. We're very happy with the progress we've made and the potential we have in this particular hole.
Proactive: Well, take us through what you discovered in that hole, then, Bo.
Bo Sears: During drilling, we had enormous shows in this well. It was an incredible well. It was fighting us the whole way down, meaning there’s a lot of gas under pressure coming back at us.
We had to increase our mud weight significantly, which can often cause damage near the wellbore, prohibiting gas from flowing to the surface.
I believe that is exactly what we have in the Flathead and the Charles formations.
Proactive: Just sticking with Amsden, you do know that high-grade lithium could be confined beneath. Would you be able to drill further for that?
Bo Sears: Absolutely. There’s still work to be done on both the Flathead and the Charles for helium and hydrogen.
We think that going back after these targets and actually putting some work into it, such as acidifying or stimulating, we can encourage flow to come to the surface.
So, we remain very sanguine about our prospects here.
Proactive: Take us through what the next steps are for the Charles formation and also for Flathead.
Bo Sears: Yeah, we are planning an attack for those zones presently. We need to get the right crews out there and the right hydrochloric acid to stimulate the limestones, for instance.
There are a lot of moving parts to line up, including a workover unit. We are nearing wintertime in Montana, so we also have to plan for that as well.
Proactive: Meanwhile, testing at Darwin #1, that’s at the Rudyard project, is also due to commence shortly. Take us through what’s planned there, Bo.
Bo Sears: Sure. Very excited about that project. We drilled a well in record time, and we should start perfing that zone early next week.
We will most definitely keep the market informed of our prospects up there.
Proactive: What other news flows should the market be looking out for, then?
Bo Sears: Just existing work on projects we have. Our pipeline is full, and we have a lot to do. I’m just very excited to continue.
Proactive: I hope you'll keep us updated on any progress. Thank you very much for speaking with us today.