Helix Exploration has announced a significant commercial helium discovery at its Darwin #1 well within the Rudyard Project in Montana’s Helium Fairway.
The exploration well has yielded high-grade helium concentrations of 1.1%, and Helix projects that individual wells at the Rudyard field could generate approximately $4.0 million in pre-tax annual cash flow.
This will be a welcome development for investors after recent disappointment elsewhere in Helix’s exploration activities, and Helix Exploration shares were 20% higher at the time of writing.
The company conducted comprehensive testing across multiple reservoir horizons, simultaneously perforating a 236-foot section spanning both the Souris and Red River intervals at depths between 5,000 and 5,276 feet.
Testing revealed robust production capabilities, with the well achieving sustained commercial flow rates of 2,750 thousand cubic feet per day (Mcf/d) of raw gas when using a 40/64″ choke.
Further testing indicated an Absolute Open Flow potential exceeding 4,500 Mcf/d, confirming Darwin #1 as a strong producing well.
“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. 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,” said Bo Sears, CEO of Helix Exploration.
“With deep experience taking helium projects through exploration into production, the Board is uniquely positioned to rapidly advance our 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.”
Notably, the well demonstrated immediate flow following perforation without requiring stimulation or swabbing, while pressure build-up between flow periods remained close to initial shut-in levels, indicating excellent reservoir permeability and minimal wellbore damage.