Helix Exploration says production from flagship project 'imminent'
Montana-focused helium development company Helix Exploration said it has acquired an additional well at the Rudyard Field as it continues to target first helium production this summer.
The company announced on Wednesday that it has a binding letter of intent to buy an additional production well (Weil #1) and 640-acre leasehold from Global Helium for £230,000 in cash.
Meanwhile, a drilling contract has been signed for the Linda #1, located just one mile south from Helix's successful Darwin #1 well, which is awaiting the construction of a helium processing plant. Linda #1 will cost $1.3m to drill and complete, is expected to generate $4m per year in pre-tax cash flow.
"We are now starting a highly active phase for the company with the imminent production of helium at Rudyard this summer," said chief executive Bo Sears.
"We will be drilling at Linda #1 next month and have agreed to acquire the Weil #1 well on favourable terms, saving the company over a million dollars by acquiring a production ready well."
Shares were down 2.5% at 13.80p by 1329 GMT.
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