Helix Exploration shares tanked on Wednesday following the release of ‘sub-economic’ test results from their Montana helium exploration activities.
The announcement follows the completion of testing at the Amsden formation, one of three target zones at the Clink #1 well.
The company said the result is not significantly impactful to the overall project, as the Amsden formation is a secondary target that represents less than 6% of the total 2.3Bcf resource outlined in the Competent Person’s Report (CPR).
Nonetheless, the market Helix shares sank on Wednesday, shedding over 20% as investors reacted to the news.
Despite the setback, Helix is moving forward with its exploration program. It plans to begin acidification and appraisal testing of the Charles formation at Clink #1 as soon as possible and has scheduled testing at their Darwin #1 well in the Rudyard project for December. Investors will hope the upcoming testing program yields better results than the Amsden formation.
“While not the results we were hoping for from the Amsden formation, one of three reservoir targets in the Clink #1 well, there is significant opportunity within the Ingomar project from the Charles formation, where acidisation and appraisal is due to commence, and our primary target in the Flathead formation which has supported the case for the Ingomar Dome with the presence of 2.5% helium and 55% hydrogen,” said Bo Sears, CEO of Helix Exploration.
“Testing at Rudyard is due to commence on Monday, where commercial grade helium has been found with high flow rates in historical drilling. We are confident about the upcoming developments at both Ingomar and Rudyard well tests and look forward to sharing results in due course.”