Mendell Helium Plc (AQSE:MDH) told investors that production from the part-owned Nilson well in Kansas has risen steadily and there are funding proposals to support the drilling of further wells.
The projects are being progressed via M3 Helium Corp, in which Mendell has an option to acquire a stake.
Production at the Nilson well has increased to 127,000 cubic feet per day, which puts it in the upper percentiles of producing wells nearby.
M3 Helium has meanwhile received proposals from three US-based oil and gas companies to support future work - two of which were described as "Nilson-type" well developments, whilst the third envisages bringing the Rost well into production.
Preparations for the Rost well in Fort Dodge include plans to manage water disposal costs and integrate modular processing units. At Rost, production is predicted to generate monthly revenues in excess of $100,000, at a production rate of 250 Mcf/day.
Total costs for bringing the well online are estimated at $400,000, with potential savings of $100,000 from repurposing existing infrastructure, Mendell noted.