Helix Exploration completes production casing at Clink #1 as shares continue to rally
() , a US-focused helium explorer, issued an operational update on its Clink #1 well at the Ingomar Dome project in Montana.
Earlier in the week, Helix announced the well had 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).
Today, Helix said production casing had been run and cemented to 8,130ft as planned, paving the way for testing. will run cased-hole wireline prior to perforating target zones for testing, with samples of any gas recovered sent to an external lab for composition analysis.
Multiple formations will be tested from the bottom of the hole upwards. If initial results are positive, will report gas composition to the market and perform an extended well test on the interval before moving on to the next horizon.
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More good news from Helix as the company advances to the testing phase of its maiden Clink #1 well at the Ingomar Dome project in Montana. Earlier in the week, markets welcomed the announcement of a successful reentry and deepening of the well to 2,606m, sending shares 17% higher on the day. Likewise, shares rose 7% today on the announcement that the well had been cased, for a total of 21% gain since Monday. is up 138% since listing on AIM in April 2024.
Testing is expected to further bolster the economics of the well at Ingomar Dome, with initial findings in the Amsden, Charles, and Flathead formations being very encouraging. 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. Next, investors can expect initial results, including an update on first gas to surface.
In June, Oak Securities set a price target of 93p for Helix, following '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 '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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