GCIHelix Exploration initiates drilling at Rudyard, targeting high-value helium reserves
() , a US-focused helium explorer, announced the start of drilling at its Rudyard project in Montana.
Drilling commenced at the Darwin #1 well to test the stacked reservoir targets in the Souris, Red River and Dry Creek intervals. Historic drilling has tested helium flow to surface at up to 1.3% He and P50 gross contingent resources of 484,193 Mcf across Souris and Red River. There is an additional P50 gross unrisked prospective resources of 112,445 Mcf in the untested Dry Creek interval.
Drilling is utilising the Treasure State Drilling Cardwell KB-150 D1D Rig. Surface casing has been set to a depth of 625ft (190m) and preparing to drill on. Drilling is expected to take 2-3 weeks to complete, followed by wireline logging and extended flow tests. Darwin #1 is an appraisal well, therefore it will be completed with production casing prior to perforation and extended well testing.
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Helix reports the commencement of drilling at its newly acquired Rudyard discovery in Montana, marking a key milestone for the project. The Darwin #1 appraisal well will reach a target depth of 5,500ft over the next 2-3 weeks to test the Souris, Red River, and previously undrilled Dry Creek intervals, targeting contingent resources of 484,193 Mcf across the former two and a prospective 112,445 Mcf in Dry Creek.
Helix is fully funded for the drilling and testing of Darwin #1, being run in parallel with extended well testing at its maiden Clink #1 at Ingomar Dome where recently completed production casing. At Ingomar Dome, testing is expected to further bolster the economics of the project, with initial findings in the Amsden, Charles, and Flathead formations being very encouraging, and initial results expected in the coming weeks.
In June, Oak Securities set a price target of 93p for Helix, following 's acquisition of the Rudyard discovery for US$250k in cash and shares. Helix is currently trading at 23.22p, 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. is up 138% since listing on AIM in April 2024.
Oak values Rudyard at c. US$85m as it is estimated to contain the aforementioned contingent resource 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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