Shares in Helix Exploration PLC (AIM:HEX, OTCQB:HHEXF) rose 9% on Thursday after the company raised £4.5 million from institutional investors to speed up helium production at its Rudyard project in northern Montana.
The AIM-listed firm said the funding round was backed by a large private family office managing over $1 billion in assets, along with other institutions. Shares were placed at 16 pence, a small discount to the previous close.
Proceeds will fund the drilling of two additional wells and the construction of surface processing facilities, with first production targeted for later this summer.
Chief executive Bo Sears said the latest flow test at Weil #1 delivered “exceptional results” and “firmly establishes the Rudyard field as a robust, near-term helium-producing field”. The well flowed 2,300 thousand cubic feet per day of gas, including 1% helium.
With three wells now tested, Helix expects to generate around $12 million in annual pre-tax cash flow, potentially rising to $20 million as two more wells come online. Drilling at the next site, Inez #1, is set to begin next week.
The stock rose 2.04p to 20.79p and has jumped 43% in the last six months as the group has made progress towards production and cash generation.