Helix Exploration Reports Progress Towards Helium Production in Montana
Why we think this is good
The interim results show significant progress towards helium production, with successful drilling operations and fundraising activities. The company has increased its exploration assets and is moving closer to production, which could generate substantial revenue. The global helium market's robust demand growth, particularly driven by AI applications, provides a favorable backdrop. However, it's important to note that the company is still pre-revenue and operating at a loss, which is typical for exploration companies at this stage. The recent fundraising activities demonstrate investor confidence in the company's potential.
Key Points
- Darwin #1 well exceeded expectations with 2,750Mcf/day at 1.1% helium
- Acquired processing plant capable of 50,000Mcf helium/year for $500,000
- Successful fundraises: £5m in January 2025, £4.5m post-period
- Potential for $20 million annual pre-tax cashflow from five production wells
- Global helium demand growing, particularly driven by AI applications
- Operating loss of £517,000 for the period, typical for pre-revenue exploration company
- Cash position of £3.33 million as of 31 March 2025
- Dual listing on OTCQB Venture Market in the U.S. to enhance visibility
Summary
Helix Exploration's interim results highlight significant progress in its Montana helium project. Key developments include successful drilling operations, with the Darwin #1 well exceeding expectations, producing raw gas flow rates of 2,750Mcf/day at 1.1% helium. The company has acquired a processing plant capable of producing up to 50,000Mcf helium a year for only $500,000, demonstrating cost-effective scaling. Financial position strengthened with a £5m fundraise in January 2025 and a subsequent £4.5m raise post-period end. The company is moving closer to production, with potential for pre-tax cashflow of up to $20 million per year from five production wells. However, it's important to note that the company is still pre-revenue and operating at a loss, which is typical for exploration companies at this stage. The global helium market's robust demand growth, particularly driven by AI applications, provides a favorable backdrop for the company's future prospects.