Helix Exploration confirms Inez-1 success as Rudyard's fourth producer

Helix Exploration (AIM:HEX, OTCQB:HHEXF) reported successful flow testing at its Inez #1 well in the Rudyard Field, Montana, establishing it as the project's fourth producer. The well achieved flow rates of 1,157 thousand cubic feet per day with a high 1.2% helium concentration, validating the field's commercial potential and adding significant volume. This deeper test provides crucial geological insights for future drilling and seismic efforts, further reinforcing Rudyard as a cornerstone helium project for Helix.

Analysis

Helix Exploration PLC has confirmed a significant operational success at its Rudyard Field Project in Montana, with the Inez #1 well now established as the project's fourth producer. The well demonstrated strong commercial potential through flow testing, achieving an absolute open flow estimate of 1,157 thousand cubic feet per day from a 55-foot interval in the Lower Souris and Red River formations. Critically, gas analysis returned a helium concentration of 1.2%, which the company's CEO noted is as high as any previously observed in the field, underscoring the quality of the underlying geological system. This result serves a dual purpose: it immediately adds production volume for the company's processing plant while also providing crucial scientific data on deeper formations. This new insight into helium concentration and pressure regimes will directly inform future drilling strategies and the planning of a 3D seismic survey, effectively de-risking subsequent field development. Furthermore, the company has signaled a near-term catalyst by planning to perforate the upper, geologically distinct Red River formation within the same well, which could deliver additional volumes and further enhance the project's economics.

Key Decisions for Investors

• This successful flow test materially de-risks the Rudyard project and validates its commercial potential, strengthening the fundamental investment case for Helix as a developing helium producer.
• Investors should monitor for forthcoming results from the planned perforation of the upper Red River reservoir, as this represents a potential near-term, low-cost catalyst for increased production volumes.
• The data gathered from this well is a long-term value driver; a key indicator to watch will be how the company incorporates these findings into future drilling programs and the scope of its planned 3D seismic survey.
• Given the high helium concentration and robust flow rates, this outcome solidifies Rudyard's status as a cornerstone asset and supports a positive outlook on the company's ability to expand reserves.