HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) earlier this week reported strong results from its Inez-1 well at the Rudyard field, achieving commercial flow rates over a 55-foot interval along with some of the highest helium grades recorded so far.
Chief executive officer Bo Sears told the Proactive studio that the company deliberately tested a smaller interval in Inez-1 to gain additional scientific insight into reservoir deliverability. He said that each well drilled at Rudyard has confirmed helium-bearing gas, and added that the field continues to demonstrate commercial potential.
Sears explained that the next step will be to test the full upper source river interval at Inez-1.
Here, we look at what Sears said in more detail.
Proactive: Bo, very good to speak with you this morning. Another exciting RNS: you have achieved commercial flow rates over 55 feet of interval and some of the highest helium grades to date. How does this compare to other wells tested at Rudyard?
Bo Sears: Thanks, Stephen. Yeah, we're really excited. With every well we drill on Rudyard field we're finding helium-bearing gas. We deliberately tested a smaller interval in this particular well so we can get some science behind it and understand deliverability components for each reservoir. So, we had good commercial flow rates, and we're really excited. It's just an amazing field thus far.
Proactive: What more is there to test from Inez-1 and what is the expected timeline to complete Inez-1?
Bo Sears: We will test the upper source river next, the entire interval like we did with the last wells. We're really excited about that. As soon as we get the workover unit available, we'll test those upper zones, and then we'll test both together.
Proactive: It seems that you've gathered lots of excellent data already, Bo. How will this help with a reserve upgrade for the Rudyard field?
Bo Sears: Every well we drill is going to add more data to our overall cumulative resource here. So, every new well will provide excellent data, especially as we roll into two successive drill endeavors.
Proactive: So four out of four commercial wells with potentially more to come from Inez-1. This is a huge achievement in less than 18 months from IPO. How's the plant coming along and when could we expect first production?
Bo Sears: The plant is coming along right on time. We will be continuing to post our progress on social media, so please follow that. But everything is going according to plan.
Proactive: So very close to becoming a revenue-generating business as you inch closer to production. Any news on offtakes anytime soon?
Bo Sears: Offtake discussions are going very smoothly right now. So stay tuned.
Proactive: Well, we will stay tuned. I hope you'll keep us updated on your progress. Thank you very much for taking the time today.