HeLIX Exploration PLC (AIM:HEX) told investors it has started drilling the Linda-1 well, at the Rudyard project in Montana.
It is the company’s third development well at the project, following Darwin-1 and Weil-1.
At the same time, Helix has signed a letter of intent to acquire a 20-acre site for a helium processing plant in the vicinity of the project’s existing infrastructure, and, said it will be built with a modular design to enable phased expansion.
Linda-1, located about one mile south of Darwin-1, will target helium-bearing zones in the Souris and Red River formations. It will also test the deeper Flathead Sandstone for helium and hydrogen, which has not been tested at Rudyard before.
“The progress from first exploration well to third production well along with a clear sight to positive cashflow in only one year has been phenomenal,” chief executive Bo Sears said in a statement.
“The groundwork we've laid over the past 12 months will drive tangible forward momentum.”
The three Rudyard wells are projected to generate some $12 million of pre-tax revenue per year based on available data – i.e. Darwin -1 flowed 2,750 thousand cubic feet (Mcf) per day of raw gas at a helium grade of 1.1%, whilst recently acquired Weil-1 previously flowed 2,500 Mcf/day at between 0.9% and 1.3% helium.
Helix described the revenue estimate as conservative.
First helium output targeted for summer 2025.
"On the one-year anniversary of our IPO, Helix is entering a new phase of growth,” Sears highlighted.
He added: “We're excited by what's ahead and look forward to updating the market as further milestones are delivered."