Helix Exploration PLC has reached a significant milestone with its recent listing on London’s AIM market. The company’s chairman, David Minchin, discussed the company’s plans for helium exploration in Montana, particularly focusing on the Ingomar Dome, which spans over 16,500 acres.
The company boasts a P50 resource estimate of 2.3 billion cubic feet of helium, with potential upside exceeding 6 billion cubic feet. This venture is substantially de-risked by historical drilling evidence of gas across target reservoir horizons. Notably, several formations have shown promising gas presence, setting a solid foundation for drilling activities slated for the third quarter of this year as the company aims for first production by end-2025.
Minchin highlighted the oversubscribed Initial Public Offering (IPO), which raised £7.5 million against a target of £3.5 to £5 million, leading to a market capitalization of approximately £12 million. This capital will finance the drilling and appraisal of a well, alongside an extended flow test. The significant interest is partly attributed to CEO and founder Bo Sears, a renowned figure in helium exploration with over 25 years of experience in the field.
Helix Exploration aims to leverage the robust dynamics of the helium market, highlighted by a compound annual growth rate (CAGR) of 20% in helium prices over the past decade and high demand from both Chinese importers and US end-users. The company plans to position itself advantageously within this market, particularly benefiting from the US Chips Act, which is expected to boost domestic demand for helium due to increased semiconductor manufacturing.
Investors can anticipate several milestones in the near term, including the commencement of a scoping study, drilling activities in Q3, and the initiation of an extended flow test. These efforts are expected to culminate in significant developments towards the construction phase and the enhancement of Helix Exploration’s project pipeline within the Montana helium fairway.
This news story relied on a press release distributed by News Direct. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Helix Exploration’s David Minchin Eyes Helium Riches in Montana After Oversubscribed IPO.