HeLIX Exploration PLC (AIM:HEX) has lined up two further wells in Montana, and provided a new update on the Clink well.
It is to acquire the Weil #1 well and a 640-acre lease from Global Helium for £230,000 ($300,000), and, alongside the Rudyard Project, it promises to double its emerging production profile.
"We are now starting a highly active phase for the company with the imminent production of helium at Rudyard this summer,” chief executive Bo Sears said in a statement.
“We will be drilling at Linda #1 next month and have agreed to acquire the Weil #1 well on favourable terms, saving the company over a million dollars by acquiring a production ready well."
At Clink, meanwhile, the company is now awaiting further information as an acidization program completed and gas samples were sent for lab analysis – though initial flow rates from the Charles formation were below commercial thresholds.
Among the options, Helix may opt to re-enter and deepen the Clink well to open up alternate formations.
Also, a rig contract is signed for the planned Linda-1 well which is slated for drilling in April.
Linda is in the vicinity of the Darwin-1 well where production is anticipated to generate around $4 million a year.
Sears highlighted: “Our approach is simple: build scale efficiently, develop resources strategically, and deliver near-term cash flow.
“Rudyard is proving to be a high-quality helium asset, and with each step forward, we are strengthening our position in what we believe is one of the most promising new helium districts in North America."