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Mendell Helium plc (LON:MDH), a helium producer based in Kansas, has reached a settlement with a former broker through the exercise of warrants for 500,000 new ordinary shares at 3 pence each. The resulting a315,000 from the warrant exercise will be applied against an outstanding liability owed to the broker. Admission of these shares to AIM is anticipated on 31 July 2026, expanding the Company’s share capital to roughly 341.9 million ordinary shares.
Key Highlights
- Mendell Helium plc (LON:MDH) settles historic broker obligations via warrant exercise and debt offset.
- 500,000 new ordinary shares issued at 3p per share, raising a315,000 to reduce broker-related debt.
- New shares expected to be admitted to AIM around 8:00 a.m. on 31 July 2026.
- Total voting rights will rise to 341,886,938 ordinary shares post-admission.
- Rost 1-26 well in Fort Dodge, Kansas, recorded a December 2025 flow rate of 250 Mcf/day, equating to an estimated a31.4 million annual helium value.
- Investors should track capital management and the completion progress of the second well, Rost 2-26.
Broker Dispute Settled Through Warrant Exercise Mechanism
Mendell Helium has amicably settled a prior dispute with a former broker by executing a warrant exercise agreement involving 500,000 new ordinary shares priced at 3 pence each. The a315,000 proceeds from this exercise will offset an existing obligation owed to the broker, addressing a legacy liability initially disclosed in the Company’s admission document dated 11 June 2026. This approach enables Mendell Helium to manage cash flow effectively while fulfilling its financial commitments.
The settlement reflects the Company’s strategy to resolve inherited obligations from its inception and public market entry. Structuring the settlement via warrant exercise preserves liquidity that would otherwise be used for cash repayment. The 3p warrant exercise price was mutually agreed, and the newly issued shares will have equal rights with existing shares, ensuring no preferential treatment.
Share Capital Expansion and AIM Admission Schedule
Mendell Helium has applied for admission of the 500,000 new ordinary shares to AIM, the London Stock Exchange’s market for growing companies. Admission is expected at 8:00 a.m. on or around 31 July 2026, pending regulatory approvals and standard listing conditions. These shares will rank pari passu with existing shares, granting identical voting and economic rights. This transparent process ensures equal treatment of shareholders and compliance with AIM and FCA regulations.
Post-admission, the Company’s enlarged share capital will total 341,886,938 ordinary shares of 1 pence each, a slight increase from before the warrant exercise. This figure allows shareholders to assess whether they must notify changes in holdings under FCA Disclosure Guidance and Transparency Rules. The July 2026 admission date serves as a clear milestone for capital structure management and regulatory reporting.
Helium Production Operations at Fort Dodge, Kansas
Mendell Helium operates helium production through its subsidiary M3 Helium in Kansas. Its primary well, Rost 1-26, located near Fort Dodge east of Dodge City, has a helium content of 5.1%, indicating a commercially viable helium-bearing formation. A drill stem test showed a peak flow rate of approximately 2,900 Mcf/day, highlighting strong well productivity.
Production began in early November 2025, marking a shift to revenue generation. The December 2025 flow rate was 250 Mcf/day, valued by the Company at about a31.4 million annual helium production (using a a3300 per Mcf reference price). This demonstrates meaningful revenue from the initial asset, though operating below peak capacity, suggesting potential for increased output. Water extracted is disposed of at the nearby Brobee disposal well, permitted for 10,000 barrels per day at 1,200 psi, ensuring adequate water management.
Development of Rost 2-26 and Multi-Well Growth Strategy
Following Rost 1-26’s success, Mendell Helium has drilled a second well, Rost 2-26, currently in completion. The Fort Dodge acreage held by M3 Helium can support up to eight additional wells, forming a robust development pipeline. This multi-well plan aims to leverage proven helium geology and infrastructure to enhance production economics.
The Company also has a joint venture with Ritchie Exploration, Inc. to recomplete the Schneweis Ventures 13A well, which has a drill stem test exceeding 10,000 Mcf/day and a historic flow of 300 Mcf/day. This JV enables Mendell Helium to access additional production without full development costs. Together, the Rost wells and Schneweis Ventures 13A provide a solid production growth foundation.
Helium Processing and Offtake Infrastructure
Mendell Helium operates on-site gas treatment at Rost wells to concentrate helium for commercial delivery. The Company leases two tube trailers for mobile helium transport to its offtaker, reducing the need for extensive pipeline infrastructure and allowing flexible customer response. This approach is common in small to medium helium operations where local infrastructure investment is uneconomical.
The Company has a committed offtake agreement providing revenue visibility and reducing demand risk. Although commercial terms, contract length, and volume commitments are undisclosed, this formal relationship is material for assessing revenue sustainability.
Hugoton Gas Field Interests and Infrastructure Access
Beyond Fort Dodge, Mendell Helium holds interests in five producing wells in the Hugoton gas field in southwestern Kansas—Peyton, Smith, Nilson, Bearman, and Dimmitt. Hugoton is one of North America’s largest gas fields, providing a substantial resource base. These wells connect to a gathering system and the Jayhawk gas processing plant, lowering capital and operational barriers and facilitating hydrocarbon monetization. This infrastructure access makes Hugoton assets a lower-risk production base compared to the more development-intensive Fort Dodge operations.
Helium Market Overview and Valuation Benchmarks
Helium is essential for industries including medical imaging, research, aerospace, and semiconductors. Global supply constraints have created favorable conditions for new producers. Mendell Helium’s valuation of December 2025 production at a3300 per Mcf offers investors a clear pricing benchmark to assess revenue assumptions against market indices.
At this price and the 250 Mcf/day flow rate, Mendell Helium generates about a31.4 million in annual helium value from a single well operating below capacity. This revenue is significant for an early-stage producer, confirming commercial viability. The helium market’s long-term demand and limited new supply underpin positive fundamentals for producers with proven resources.
Regulatory Disclosure and Inside Information
This announcement contains inside information per UK Market Abuse Regulation (MAR), defined as precise, non-public information likely to impact the Company’s financial instrument prices if disclosed. The broker settlement, warrant exercise, and share issuance alter the capital structure and financial obligations, qualifying as inside information.
The Company’s Directors are responsible for this announcement’s release, ensuring regulatory compliance and equal information dissemination to all market participants, preventing selective disclosure.
Investor Relations and Shareholder Communication
Mendell Helium offers multiple investor engagement channels, including an interactive website (mendellhelium.com/link/PKa6Ve) for questions, video summaries, and shareholder interaction. A dedicated announcement portal (mendellhelium.com/s/a6a55a) invites investor inquiries, reflecting transparency and modern investor relations best practices.
Contact details for CEO Nick Tulloch, Cairn Financial Advisers LLP (Nominated Adviser), SI Capital Limited (Broker), and other advisors are provided to direct queries appropriately, supporting investor confidence and efficient communication.
This article is informational and reports facts from Mendell Helium plc’s Investegate/RNS announcement. It does not constitute investment advice or recommendations regarding Mendell Helium shares or any securities. Valuations, production data, and commercial assumptions are based on Company disclosures and have not been independently verified. Market conditions, prices, and operational results are subject to change. Past or projected performance does not guarantee future outcomes. Investors should perform due diligence, review full regulatory filings, and seek independent financial advice before investing. The helium sector involves commodity price volatility, operational risks, and demand fluctuations, which may impact the Company’s financial performance and share price.
