9 April 2024
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS
RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY,
IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, NEW
ZEALAND, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR
DISTRIBUTION WOULD BE UNLAWFUL.
Helix Exploration
PLC
("Helix Exploration" or the
"Company")
Admission to trading on
AIM
& First Day of
Dealings
Helix Exploration, a helium
exploration company with operations in Montana, USA, is pleased to
announce admission of its Ordinary Shares to trading on the AIM
market of the London Stock Exchange ("AIM"). Admission will take
place and dealings commence at 8.00 a.m. today under the ticker HEX
and the ISIN GB00BPK66X70.
The Company's Admission Document, as
well as the Schedule One and information required pursuant to AIM
Rule 26, is available on the Company's website at
https://www.helixexploration.com/.
Admission Highlights
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Oversubscribed placing with book of
demand over £22 million to raise gross proceeds of £7.5
million
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Market capitalisation on Admission
of £12.2 million
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Placing price per share of
10p
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Net proceeds of the fundraise will
be used to fund scoping study and appraisal drilling at Ingomar
project in Montana
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Project Highlights
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Large Scale: Anticlinal closure
mapped at surface over 16,512 acres with P50 gross unrisked
prospective helium resources of 2.3 billion cubic feet
("Bcf")
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Proven Gas: Historic drilling has
identified gas in all target horizons in stacked reservoir
system
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Right Location: Helium identified at
surface, on Montana Helium Fairway which is host to multiple helium
discoveries and production
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Veteran Management: Experienced team
including CEO Bo Sears with track record in helium exploration,
development and production experience
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Global Demand: Helium in
unprecedented short supply with price increasing at 20% CAGR over
the last decade
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Details
Helix is focused on the exploration
and development of low risk, large scale helium deposits within the
'Montana Helium Fairway'. The Company's assets comprise of 52
leases over the Ingomar Dome Project, with a large closure of
16,512 acres, a P50 unrisked prospective helium resource of 2.3Bcf
and an upside estimate of 6.7 Bcf. Historic drilling and/or testing
has identified gas in all target reservoir horizons.
Large Scale
Ingomar sits within the "Montana
Helium Fairway", which extends from Wyoming USA to Saskatchewan
Canada and hosts several known helium occurrences including
production in Canada from the Weil Group and North American
Helium. Helium is generated in ancient crust and migrates
along major structures.
Ingomar represents a large
anticlinal closure of 16,512 acres mapped at surface, in seismic
and in drilling, located on the upthrown side of the deep-seated
Sumatra Thrust.
Proven Gas
Historic drilling and/or testing has
identified gas in all target reservoir horizons
including:
o 195ft in Amsden Formation in Hillison-1 wellbore
o 145
- 175ft in Charles Formation in Froze To Death and Treasure 18-1
wellbores
o 10 -
26ft in Flathead Formation in Treasure 18-1 wellbore
Gas samples were not assayed for
helium but have been identified to contain high-nitrogen, which is
a key exploration indicator for helium within the "Montana Helium
Fairway". Ryder Scott analysed helium concentrations from analogous
wells and probabilistically modelled grade range as 0.9% - 2.2%
with a P50 grade of 1.52% Helium.
Presence of helium is supported by
gas-in-soil analysis over the Ingomar Dome which identified a
high-helium anomaly close to the Hillison-1 wellhead.
Anonymously high helium concentrations in the soil around the
Hillison-1 wellbore provide evidence that there could be helium in
the reservoirs in the subsurface.
Low-cost exploration
The site Ingomar Dome is ready to
drill with no further geological work required ahead of drilling.
The target depth of 8,000ft is not considered deep for North
American drilling and hosts a competitive drilling market with
spare rig capacity and "on-time" service delivery. Helix is
fully funded from proceeds of the IPO to drill, log and test
appraisal well using local suppliers based out of Montana and
Wyoming.
Following appraisal drilling, Helix
will fast-track development of Ingomar Dome based on the experience
of CEO Bo Sears' discovery and development of helium from Mankota
Project in Canada. Management estimate approximately
US$12.5-15.0 million to build a modular processing plant delivering
~55,500 Mcf helium per year with a construction timeline of
approximately twelve months from appraisal to first-gas
production.
Growing helium market demand
Helium in unprecedented short supply
with Chinese import prices rising to US$623/mcf in February 2023
and US Defence Logistics Agency bulk pricing over US$1,000/Mcf.
There is no end in sight for the current global shortage and
existing production is currently declining at 2-3% per annum,
compared to the demand growth at CAGR 6%.
Key drivers include semiconductor
chips, flat panel displays and fibre optic manufacturing. The CHIPS
Act in the USA, which includes US$39 billion in tax benefits and
other incentives to encourage American companies to build new chip
manufacturing plants in the US, is expected to further increase the
domestic demand for helium in the USA. New helium production is
required to balance the market and ensure security of supply to the
USA. Montana is ideally positioned to supply directly to
North America end users.
Strategy
Following admission on AIM, Helix's
strategic focus will be on appraisal and early production at
Ingomar Project. An aggressive development timeline
will see appraisal drilling targeted for Q3 2024 and first helium
production targeted for Q4 2025. Helix is committed to open and
transparent communication with investors and the wider market as
the project progresses through development.
The Company will leverage successful
development work at the Ingomar Dome to grow a pipeline of low
risk, near production helium assets by utilising the team's unique
network and experience.
Bo
Sears, CEO of Helix Exploration, said:
"After 24 years in helium exploration and development it has
become clear to me that new, large-scale, primary helium projects
are required to satisfy growing demand. These projects are best
discovered by teams with a deep understanding of helium
systems.
"Ingomar Dome is a large closure of 16,512 acres with P50
Gross Unrisked Prospective Resources of 2.3Bcf. The project
benefits from historical drilling which identified gas in multiple
target reservoir horizons in a stacked closure.
"Helix Exploration offers investors an opportunity to invest
in a proven management team operating in an area of known helium
occurrences in the United States."
David Minchin, Executive Chairman of Helix Exploration,
said:
"We have chosen to list in London because we believe it is the
pre-eminent market for growth resource companies with a deep pool
of investors, talent and very high standards of governance. London
remains a world leading capital market for
small-cap companies.
"With helium in unprecedented short supply with Chinese import
price rising to US$623/mcf in February 2023 and US Defence
Logistics Agency bulk pricing over US$1,000/Mcf, we think now is
the right time to invest in the identification of new sources of
primary helium supply.
"I
am delighted to be part of bringing Helix Exploration to the London
market with our aim of actively pursuing the exploration,
commercial development and monetisation of a non-hydrocarbon
associated helium rich gas structure in the Ingomar Dome located in
central Montana, USA."
The Directors of the Company are
responsible for the release of this announcement.
Enquiries
Helix Exploration
Cairn - Nominated Adviser
Liam Murray
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+44 (0)20 7213 0880
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Ludovico Lazzaretti
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James Western
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Hannam & Partners - Joint Broker
Neil Passmore
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+44 (0)20 7907 8502
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Andy Crispin
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Spencer Mignot
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SI
Capital - Joint Broker
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Nick Emerson
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+44 (0)14 8341 3500
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Renato Rufus
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Nick Briers
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OAK
Securities - Joint Broker
Jerry Keen
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+44 (0)20 3973 3678
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Henry Clark
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Camarco - Financial PR
Notes to Editors
Helix Exploration is a helium
exploration company focused on the exploration and
development of low risk, large scale helium deposits within the
"Montana Helium Fairway". Founded by industry experts with
extensive experience of helium systems in the US, the Company's assets comprise of 52 leases over the Ingomar
Dome; a large closure of 16,512 acres with P50 unrisked prospective
helium resource of 2.3Bcf and upside of 6.7 billion cubic feet.
Historic drilling and/or testing has identified gas in all target
reservoir horizons.
Helix Exploration will focus on
appraisal and early production at the Montana Ingomar Dome
Project. An aggressive development timeline will see
appraisal drilling targeted for Q3 2024 and first helium production
targeted for Q4 2025. Helix is committed to open and
transparent communication with investors and the wider market as
the project progresses through development.
Caution regarding forward looking statements
Certain statements in this
announcement, are, or may be deemed to be, forward looking
statements. Forward looking statements are identified by their use
of terms and phrases such as ''believe'', ''could'', "should"
''envisage'', ''estimate'', ''intend'', ''may'', ''plan'',
''potentially'', "expect", ''will'' or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.