HeLIX Exploration PLC (AIM:HEX) has reported “exceptional” flow rates from the Linda-1 well, at the Rudyard project in Montana.
In test conditions, the flow measured 3.85 million cubic feet of gas per day, which is some 40% higher than the previous result at the project’s Darwin-1. And, gas analysis indicates ‘high grade’ helium content of 1.2%.
The absolute flow rates reached a peak of 4.7 million cubic feet per day.
Helix estimates the well will deliver some $4 million of cash flow per year.
Notably, Linda flows with strong natural pressure and permeability, requiring no stimulation to flow.
"The Linda #1 result confirms that the Rudyard Field is not only productive - it's scalable,” chief executive Bo Sears said in a statement.
“With exceptional flow rates, a large structural footprint, and strong early gas quality, we now have a foundation to build a long-life domestic helium supply project.
“We intend to move forward with development quickly and efficiently.
Sears added that with near-term production, strong reservoir performance, and low-cost operating model, it is in a position to fill critical supply gaps in the United States.
“We believe the shifting dynamics in the global helium supply chain only reinforce the strategic importance of new North American entrants like Helix, and we are committed to capitalising on this moment to deliver long-term value to shareholders."