LONDON: Helix Exploration, a US-based helium exploration firm, has commenced trading on the AIM market of the London Stock Exchange under the ticker HEX. The company’s shares opened at 8.00 a.m. with an ISIN of GB00BPK66X70, following an oversubscribed placing that raised £7.5 million from a demand book exceeding £22 million. The initial market capitalisation stands at £12.2 million, with a share price of 10p.
The net proceeds will finance the Ingomar project in Montana, where Helix aims to tap into a large-scale helium resource estimated at 2.3 billion cubic feet. The project benefits from its location on the Montana Helium Fairway, a region known for multiple helium discoveries. Helix’s CEO, Bo Sears, brings a wealth of experience in helium exploration and development to the table.
With global helium demand soaring and prices increasing by 20% annually over the past decade, Helix’s focus is on developing low-risk, large-scale helium deposits. The Ingomar Dome project covers 16,512 acres and has shown promising signs of helium presence through historic drilling and gas-in-soil analysis.
Helix is poised to begin drilling at the Ingomar Dome, which requires no further geological work and is located at a manageable depth of 8,000ft. The company is fully funded for appraisal drilling and testing, with plans to fast-track development and build a modular processing plant estimated to cost between US$12.5-15.0 million, capable of producing approximately 55,500 Mcf of helium per year.
Growing helium market demand
Helium in unprecedented short supply with Chinese import prices rising to US$623/mcf in February 2023 and US Defence Logistics Agency bulk pricing over US$1,000/Mcf. There is no end in sight for the current global shortage and existing production is currently declining at 2-3% per annum, compared to the demand growth at CAGR 6%.
Key drivers include semiconductor chips, flat panel displays and fibre optic manufacturing. The CHIPS Act in the USA, which includes US$39 billion in tax benefits and other incentives to encourage American companies to build new chip manufacturing plants in the US, is expected to further increase the domestic demand for helium in the USA. New helium production is required to balance the market and ensure security of supply to the USA. Montana is ideally positioned to supply directly to North America end users.
Following admission on AIM, Helix’s strategic focus will be on appraisal and early production at Ingomar Project. An aggressive development timeline will see appraisal drilling targeted for Q3 2024 and first helium production targeted for Q4 2025. Helix is committed to open and transparent communication with investors and the wider market as the project progresses through development.
The company will leverage successful development work at the Ingomar Dome to grow a pipeline of low risk, near production helium assets by utilising the team’s unique network and experience.
Bo Sears, CEO of Helix Exploration, said: “After 24 years in helium exploration and development it has become clear to me that new, large-scale, primary helium projects are required to satisfy growing demand. These projects are best discovered by teams with a deep understanding of helium systems.
“Ingomar Dome is a large closure of 16,512 acres with P50 Gross Unrisked Prospective Resources of 2.3Bcf. The project benefits from historical drilling which identified gas in multiple target reservoir horizons in a stacked closure.
“Helix Exploration offers investors an opportunity to invest in a proven management team operating in an area of known helium occurrences in the United States.”
