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(Sharecast News) - Helix Exploration confirmed a commercial helium discovery at its Darwin #1 well, part of the Rudyard Project within the Montana Helium Fairway, on Thursday.
The AIM-traded firm said the well successfully tested two reservoir horizons, Souris and Red River, with a combined perforation of 236 feet.
Analysis revealed high-grade helium concentrations of 1.1%, with the remaining gas composition primarily nitrogen.
Commercial flow rates were sustained at 2,750 thousand cubic feet per day of raw gas using a 40/64" choke, while absolute open flow capacity was calculated to exceed 4,500 thousand cubic feet daily.
The Rudyard field demonstrated strong potential for multiple production wells, the board said, with each well capable of generating pre-tax cash flows of about $4m annually.
Helix said the wells were designed to drain extensive areas, supporting sustained production over long periods.
The company said it was planning to fast-track development at Rudyard, benefiting from the favorable gas composition and existing infrastructure, including power, road, and rail access.
That approach was expected to minimize costs and expedite the timeline to production.
"Darwin #1 has delivered exceptional results and has demonstrated it has the potential to be a strong producer capable of delivering sustained flow of commercial helium," said chief executive officer Bo Sears.
"The identification of 1.1% helium with commercial flow rates at Darwin #1 makes Rudyard a company-making discovery.
"With capacity for several production wells to operate on Rudyard field simultaneously the project has potential to generate multi-million-dollar revenues per year."
Sears said that, with "deep experience" taking helium projects through exploration into production, the board was "uniquely positioned" to rapidly advance the projects.
"With low capital requirements and high yield return on investment Rudyard is attractive to many forms of project finance.
"We look forward to an exciting 2025 as we update the market on plans to become cash generating before the end of next year."
At 1531 GMT, shares in Helix Exploration were up 8.45% at 17.9p.
Reporting by Josh White for Sharecast.com.