Helix Exploration Begins Drilling at Clink #1 Well in Montana

HeLIX Exploration PLC (AIM:HEX), a firm focused on helium exploration and development, has announced the start of drilling operations at the Clink #1 well. This well is situated in the Ingomar Dome project area, part of the Montana Helium Fairway. This initiative marks the beginning of a critical drilling program aimed at evaluating several stacked reservoir targets, including the Amsden, Charles, and Flathead Formations, all noted for their rich nitrogen gas deposits.

The Clink #1 well represents the first phase of a two-well drilling campaign planned for the third quarter of 2024. Drilling is anticipated to take approximately three to four weeks to complete. Following the drilling phase, Helix Exploration will conduct wireline logging and extended flow tests to thoroughly evaluate the potential of the gas reservoirs. These tests will provide crucial data to determine the viability of the identified formations for future development.

Bo Sears, Chief Executive of Helix Exploration, expressed enthusiasm about the start of drilling at Clink #1. “We are excited to begin drilling at the Clink #1 well on the crest of the Ingomar Dome anticline,” Sears said. “This well will enable us to thoroughly appraise each target horizon through extended flow testing. If successful, Clink #1 will be positioned as a future production well, significantly reducing the time and costs associated with advancing towards first gas production, which we anticipate will commence before the end of 2025.”

The primary focus of the Clink #1 well is the Flathead Formation, located at a depth of 7,410 feet, which is recognized as the primary helium-producing horizon in the region. The well will also target the Amsden Formation at 3,840 feet and the Charles Formation at 4,780 feet. Although historical drilling in these secondary formations has identified nitrogen-rich gas, their potential for helium production remains untested.

In addition to the Clink #1 well, Helix Exploration has scheduled the drilling of the Darwin #1 well at the Rudyard Project later in the quarter. This well is intended to evaluate contingent helium resources in an area where helium has previously been confirmed at depths ranging from 5,000 to 5,500 feet.

This drilling program is a significant step for Helix Exploration as it seeks to advance its helium exploration efforts and assess the potential of its Montana-based projects. The outcomes of these drilling activities will be pivotal in shaping the company's strategy for future development and production in the helium sector.

Helix Exploration is a specialized helium exploration company dedicated to identifying and developing helium deposits within the 'Montana Helium Fairway.' Founded by seasoned industry professionals with deep expertise in U.S. helium systems, the company holds 52 leases covering the Ingomar Dome, a significant 16,512-acre closure with a P50 unrisked gross prospective helium resource estimated at 2.3 billion cubic feet (Bcf), with a potential upside of 6.7 Bcf. Historic drilling and testing have confirmed the presence of gas across all targeted reservoir horizons within this area.

In addition to Ingomar Dome, Helix Exploration's portfolio includes a 5,600-acre site in Rudyard, Montana, where historic drilling adjacent to the leases has revealed a helium discovery with concentrations of up to 1.3% helium. The Rudyard asset is estimated to hold P50 gross contingent helium resources of 482,000 thousand cubic feet (Mcf) in two stacked reservoirs, with an additional 112,000 Mcf of gross prospective helium resource in untested horizons.