AUS
NZ
UK
CA
USA
IND
Highlights
- Substantial Helium Reserves: Aeon Petroleum Consultants estimate recoverable reserves of 355 million cubic feet in the northern dome, with total potential reserves of 484 million cubic feet.
- Robust Economic Outlook: Projected net revenue of $115.2 million over 12.5 years, with a peak post-tax cash flow of $15–25 million annually.
- Strategic Capital Raise: £4 million to fund infrastructure, new wells, and exploration initiatives.
Helix Exploration (LSE:HEX) engaged Aeon Petroleum Consultants Corp., renowned for their expertise in the oil and gas sector, to analyze reserves in the Rudyard Project, located within the Montana Helium Fairway. The evaluation, based on extended well tests in the Darwin #1 well, revealed:
- Northern Dome: Estimated recoverable reserves of 355 million cubic feet of helium.
- Southern Dome: Contingent resources of 280 million cubic feet, pending further testing.
In total, the Rudyard Project has a combined reserve estimate of 484 million cubic feet, demonstrating its significant helium resource potential.
Economic Modeling
The economic analysis, assuming a flat helium price of $500 per thousand cubic feet (Mcf), projects:
- Net Revenue: $115.2 million over 12.5 years.
- Peak Post-Tax Cash Flow: $16.5 million annually.
- Net Present Value (NPV8): $77.9 million.
- Internal Rate of Return (IRR): Greater than 1,000%.
Helix’s internal projections, factoring in the southern dome’s potential production, further enhance the outlook:
- Net Revenue: $220 million.
- NPV8: $145 million.
- Peak Post-Tax Cash Flow: $28 million annually.
These figures underscore the project’s significant profitability, particularly if the southern dome’s contingent resources are validated.
Capital Raising Plan and Use of Proceeds
£4 Million Fundraising Initiative
To advance the Rudyard Project, Helix Exploration is raising a minimum of £4 million through the issuance of 26,666,667 new ordinary shares at 15 pence per share. This includes:
- Placing: 23,570,000 shares to generate £3.5 million.
- Subscription: 3,096,667 shares to raise £464,500.
Planned Allocation of Funds
The capital raised will be directed toward:
- Infrastructure Development: Installing a PSA (Pressure Swing Adsorption) Processing Plant and Membrane Unit at the Rudyard site.
- Production Expansion: Drilling two additional production wells to boost output.
- Exploration Efforts: Defining resources and initiating exploration across other company projects.
- Working Capital: Addressing general operational needs.
