Helix Exploration PLC (AIM:HEX, OTCQB:HHEXF) has reported on what chair David Minchin described as “an important chapter”, as it filed interim results for the six months ended 31 March.
The start of drilling at the Rudyard helium project, in Montana, was a standout highlight – it began a successful run, that is now set to extend to include more new wells.
Darwin-1, drilled in November, delivered raw gas flow rates of 2,750 Mcf per day at 1.1 % helium, a performance that’s indicative of some $4 million in annualised revenue.
It was followed by Linda-1, which flowed 3,850 Mcf per day at 1.2 % helium, and then the recently spudded Inez-1, with a slate of further well drilling funded and expected to come after that.
Also in the reporting period, Helix acquired a helium processing plant for $500,000, and also acquired the Weil-1 helium well, adding to the portfolio whilst saving around $1 million of drill costs.
Drilling of Wells 4 and 5 will start soon, and, subject to results, may drive annual cash flow to around $20 million.
This progress is supported by a recent £4.5 million equity raise, after the reporting period, that was strongly supported and led by ‘an institutional family office '.
Helix is, meanwhile, advancing commercial talks over potential offtake agreements that would secure and boost revenues.
Also, Helix opened itself up to US-based investment, with its addition of a dual‐listing, via a quote on the OTCQB Venture Market, enabling American investors to trade in local market hours and with greater ease.
“With a strong cash position, long-term supportive shareholders, and near-term production, the company is in a strong position to fulfil its strategic aim of becoming a disruptive new supplier of helium to the US market,” Minchin said in the statement.
He added: “Since our IPO just over twelve months ago, Helix has made remarkable progress in executing our strategic vision and delivering value to our shareholders.
“Our approach is simple: build scale efficiently, develop resources strategically, and deliver near-term cash flow. With first production approaching and a strengthened platform for continued growth, Helix is well-positioned to become a strategic new supplier of helium to the US market.”