Zak Mir talks to David Minchin, Chairman of Helix Exploration, about the latest from Rudyard and how this week's fundraiser will take the helium explorer to production.

Helix Exploration PLC has announced updated helium reserves and economic modelling results for its Rudyard Project. The company plans to raise a minimum of £4 million through a share issue to fund the development and production, targeting significant cash flow and market expansion. The first production is expected in Q2 2025.

Highlights of Reserves and Economic Modelling

•     Reserves of 355 million cubic feet of helium calculated by Aeon Petroleum Consultants Corp. ("Aeon") on northern dome only

•     Net Revenue $115.2m over 12.5-year life of field and peak sustained post-tax cash flow of $15-25 million per year using a flat helium price of $500/Mcf

•     Aeon modelling results in NPV8 of $77.9m and IRR >1,000% on reserves in northern part of dome

•     In-house modelling results in NPV8 of circa $145m and Net Revenue circa $220m including contingent resources in southern part of dome

•     Results from Darwin #1 indicate closure is larger than expected under current structural model

Bo Sears, CEO of Helix Exploration, said:

"We are delighted to announce updated reserves and economic forecasts for Rudyard Project which demonstrate the potential to generate free cash flow of $15 - $25 million per year post-tax and post-royalty, and net revenue of $115 - $220 million over a 12.5-year life of field.  Reserves demonstrate discovered commercial helium that underly the value of the Rudyard Project and considerable upside for long term shareholders."

"With the expected completion of the proposed fundraise, Helix will be fully funded to bring the Rudyard Project into production and positive cash-flow, targeting first production within Q2 of this year.  Early cashflow gives Helix the freedom to pursue exploration and M&A, self-financing development and growing Helix into a strategic helium producer for the USA market."

David Minchin, Chairman of Helix Exploration, said

"The decision to move forward with an equity raise comes after a detailed review of the economic model and terms of available debt finance.  Equity became preferable over debt considering the high cost of debt capital as well as onerous terms including long term take-or-pay agreements that would have limited the Company's ability to market produced helium to end-users and the wider USA market.  In-house analysis showed a higher post-dilution NPV per share on an equity raise compared to a debt raise, demonstrating that equity would be the preferred finance route to grow the Company and deliver long-term benefit to shareholders."

"We look forward to an active period for the Company as we move to complete the proposed fundraise and accelerate Rudyard into production."