Helix Exploration PLC has achieved a notable milestone by listing on London's AIM market, signaling a new chapter in its ambitious helium exploration endeavors. The company, under the leadership of chairman David Minchin, is setting its sights on the Ingomar Dome in Montana, a vast area covering over 16,500 acres, with a P50 resource estimate of 2.3 billion cubic feet of helium and potential reserves exceeding 6 billion cubic feet. This project is bolstered by historical drilling evidence indicating gas presence across target reservoir horizons, laying a solid groundwork for upcoming drilling activities in the third quarter of this year.
The company's Initial Public Offering (IPO) was oversubscribed, raising £7.5 million against an initial target range of £3.5 to £5 million, resulting in a market capitalization of approximately £12 million. This financial backing is earmarked for the drilling and appraisal of a well, along with an extended flow test, crucial steps towards achieving first production by the end of 2025. The overwhelming investor interest can be attributed to the leadership of CEO and founder Bo Sears, whose 25 years of experience in helium exploration brings invaluable expertise to the venture.
Helix Exploration is poised to capitalize on the favorable dynamics of the helium market, which has seen a compound annual growth rate (CAGR) of 20% in helium prices over the past decade. The demand for helium, particularly from Chinese importers and US end-users, is on the rise. The company is strategically positioning itself to benefit from the US Chips Act, which is expected to further increase domestic demand for helium due to its critical role in semiconductor manufacturing.
Investors and industry watchers can look forward to several key milestones in the near future, including the start of a scoping study, the initiation of drilling activities in Q3, and the commencement of an extended flow test. These initiatives are anticipated to pave the way for significant advancements in the construction phase and the expansion of Helix Exploration's project pipeline within the Montana helium fairway, marking a significant step forward in addressing the global helium demand.
