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(Sharecast News) - Helix Exploration reported positive wireline logging results from its Inez 1 well within the Rudyard Field in Montana on Friday, identifying a 140-foot gas-bearing reservoir in the Souris and Red River formations.
The AIM-traded firm said the wireline logs showed gas indications throughout the interval and correlated closely with Helix's Linda 1 production well, which is located two miles north on the same anticline.
Flow testing at Inez 1 was scheduled to begin in early August once the contracted workover rig was mobilised.
"We are pleased to update the market on continued progress at the Rudyard Field project," said Bo Sears, chief executive of Helix.
"Wireline results from Inez 1 look extremely encouraging with clearly defined gas bearing reservoir intervals in the Souris and Red River formations."
Sears said "importantly" the wireline characteristics were similar to Linda 1.
"While log correlation does not guarantee similar test outcomes, it provides a basis for further testing ahead of planned flow and gas composition testing at Inez 1."
The company said the Inez 1 well had been drilled, logged, and cased to surface, with petrophysical data confirming a strong gas effect, including helium gas shows of up to 948 parts per million - 180 times background levels - reported during drilling.
Helix said all required downhole equipment for testing was on site or in transit, adding that the programme would focus on the principal gas-bearing zones identified in the wireline logs.
Plant construction at the Rudyard site was advancing in line with schedule, with groundworks nearly complete and cement pouring for the plant pad set to begin in early August.
The helium PSA skid and membrane skid had been completed and were undergoing testing, while the membranes were ready for transport from Houston to Montana.
Helix had also submitted plans for an approach road to the plant site, with construction expected to start shortly.
At 1342 BST, shares in Helix Exploration were up 6.36% at 26.33p.
Reporting by Josh White for Sharecast.com.