Proactive Investors - HeLIX Exploration PLC (LON:HEXH) has acquired the Rudyard project, a significant helium exploration site in Hill County, Montana, adding a proven project that spans some 5,600 acres
It is making an upfront payment of $250,000 in cash and 600,000 new shares.
Rudyard has already demonstrated commercial quantities of helium, from two wells, which previously tested favourably for helium grade and flow rates, the company noted.
It is currently estimated to host some 0.48 billion cubic feet of contingent resources, with an estimated in-situ value in excess of $250 million.
"Expanding our helium exploration portfolio is a strategic priority for Helix Exploration,” chief executive Bo Sears said in a statement.
“The Rudyard project represents an exciting addition that complements our flagship Ingomar Dome project, where we are scheduled to commence drilling in Q3 2024."
“[it] has demonstrated commercial quantities of helium rich gas and we believe there is untapped potential in the deeper formations that have not been fully explored.
“With access to critical infrastructure like the BNSF rail line and 3-phase power, the Rudyard project gives us an excellent opportunity to grow our helium business and diversify our asset base.
“We are thrilled to add this project to our portfolio and look forward to unlocking its value for our shareholders."
David Minchin, Helix chair, meanwhile, added, "The acquisition of the Rudyard Project significantly de-risks the Helix portfolio with the addition of proven helium resources and Contingent Resources providing a direct pathway to commercial production."
"At IPO we announced that Helix was fully funded for two appraisal wells.
“We are now delighted to confirm that our second fully funded appraisal well will be placed in Rudyard where an extended flow test will allow us to convert contingent resources into Reserves and fast-track the project towards commercial production."