Helix Exploration (HEX) , a US-focused helium explorer, issued an operational update on its Clink #1 well at the Ingomar Dome project in Montana.
Helix said the well successfully accessed the Mowry formation to 2,622ft (800m) by setting a 7-inch intermediate casing through the entire interval. This was followed by a successful reentry and deepening of the wellbore to 8,550ft (2,606m).
Next, Helix will complete the well with production casing and commence testing. If multiple formations are deemed suitable for testing, each zone will be tested separately from the bottom up to allow for isolated tests over each interval.
Bo Sears, CEO of Helix Exploration, commenting: "The successful re-entry and subsequent deepening of Clink #1 is a significant milestone for the Company. I am delighted with the re-entry efforts and the exceptional work of our engineering team, as we see promising results in each of the target formations."
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Excellent news out of Helix Exploration on its Clink #1 well at Ingomar Dome, Montana. Markets welcomed the announcement of a successful reentry and deepening of the well to 2,606m, sending HEX shares 16% higher in early Monday trade. HEX has more than doubled since listing on AIM in April 2024.
Helix's reentry operations on Clink #1 aimed to place the problematic Mowry shale formation behind pipe. The interval was successfully cased over with 7-inch casing cemented to surface. Following the reentry, and with the well in good condition, HEX deepened the well to determine if the Precambrian could be reached. While Precambrian rock was not found, a second thick Cambrian sandstone horizon was found at 8,290 ft all the way to total depth.
Investors can now expect the well to be completed and testing to commence shortly. Production casing will run the hole to total depth, and testing will proceed immediately after.
In June, Oak Securities set a price target of 93p for Helix, following HEX's acquisition of the Rudyard discovery in Montana for US$250k in cash and shares. Helix is currently trading at 22.77p, giving it a market cap of of just under £30m on the AIM market. If realised, Oak's valuation will send Helix out of the ranks of junior resources companies and towards the mid-tier.
Oak values Rudyard at c. US$85m as it is estimated to contain contingent resources of 0.48 bcf of helium, with additional upside at greater depth. Oak's unrisked valuation of Helix's overall portfolio is 187p/share. In addition to increasing HEX's resource base, Rudyard should enable near-term cashflow.
Helium is in unprecedented short supply as demand for high-tech applications continues to surge. Demand growth estimates CAGR of 6% from 5.9bcf/y in 2023 to 8.7bcf/y in 2030.
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