HeLIX Exploration PLC (AIM:HEX) has announced a 'company-making' commercial helium discovery from the Darwin #1 well at the Rudyard project in Montana.
Testing of the Souris and Red River reservoir horizons confirmed high-grade (1.1%) helium with the balance primarily nitrogen.
Commercial flow rates were sustained at 2,750 thousand cubic feet per day (Mcf/d) of raw gas at 40/64” choke with absolute open flow calculated to be over 4,500 Mcf/d, said the statement.
HeLIX believes that the Rudyard field can support multiple production wells on structure, with each well having the potential to produce pre-tax cashflow of some US$4 million per year and drain a large area over a sustained period.
Bo Sears, chief executive, added: “Darwin #1 has delivered exceptional results and has demonstrated it has the potential to be a strong producer capable of delivering a sustained flow of commercial helium.
“The identification of 1.1% helium with commercial flow rates at Darwin #1 makes Rudyard a company making discovery.
"With the capacity for several production wells to operate on Rudyard field simultaneously, the project has the potential to generate multi-million-dollar revenues per year.
“With low capital requirements and high yield return on investment, Rudyard is attractive to many forms of project finance.”