No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Helix Exploration said on Wednesday that its Inez #1 well in the Rudyard Field, Montana, had delivered high-grade helium and commercial flow rates, although at lower flow rates than earlier wells.
The AIM-traded firm said the well was perforated over a 55 foot interval in the Lower Souris and Red River formations, returning helium concentrations of 1.2% with the balance primarily nitrogen.
Absolute open flow was estimated at 1,157 thousand cubic feet per day (Mcf/d) with maximum surface pressure of 1,541 psi.
The result brought the number of producing wells at Rudyard to four, with Helix planning to perforate additional zones in the upper Souris River formation that could add to flow rates.
Gas samples sent to Isotech Laboratories confirmed the helium grade and consistency with results from other wells, including Linda #1, suggesting continuity of reservoir quality across the closure.
While flow rates were lower than those recorded at earlier wells, Helix said that reflected the narrower perforation interval of 55 feet compared with over 200ft in previous completions.
The company added that post-stimulation acidisation significantly improved results at Inez #1 and may be applied across the wider field.
"The Inez #1 well delivers another productive outcome for the Rudyard Field, adding additional volume to our plant and further validating the field's commercial potential," said chief executive Bo Sears.
"Importantly, this well was designed to maximize the science we can extract from Rudyard.
By electing to test the deeper Lower Souris and Red River formation, we are gaining insight into helium concentration, flow characteristics, and pressure regimes that will help guide both future drilling and eventual 3D seismic across the field.
"The helium percentage recorded at Inez #1 is as high as observed from any of our wells, underscoring the strength of the system."
He added that upcoming perforation of the upper Red River reservoir could provide further volumes, with each new well broadening knowledge of the field, expanding reserves and reinforcing Rudyard as a cornerstone helium project.
At 1202 BST, shares in Helix Exploration were down 10% at 23.4p.
Reporting by Josh White for Sharecast.com.
