Helix Exploration PLC has achieved a notable milestone by listing on London's AIM market, signaling a new chapter in its ambitious helium exploration endeavors. The company, under the leadership of chairman David Minchin, is focusing its efforts on the Ingomar Dome in Montana, a vast area covering more than 16,500 acres. With a P50 resource estimate of 2.3 billion cubic feet of helium and potential resources exceeding 6 billion cubic feet, Helix Exploration is poised to make a significant impact in the helium sector. Historical drilling evidence has de-risked the venture, revealing promising gas presence across several formations, which lays a solid groundwork for the drilling activities planned for the third quarter of this year. The company aims to achieve first production by the end of 2025.
The oversubscribed Initial Public Offering (IPO), which raised £7.5 million against a target range of £3.5 to £5 million, reflects strong investor confidence in Helix Exploration's vision. This financial backing has propelled the company to a market capitalization of approximately £12 million, funds that will be instrumental in drilling and appraising a well, alongside conducting an extended flow test. The leadership of CEO and founder Bo Sears, a veteran in helium exploration with over 25 years of experience, has been a key factor in attracting investor interest.
Helix Exploration is strategically positioning itself to capitalize on the helium market's robust dynamics, characterized by a 20% compound annual growth rate (CAGR) in helium prices over the past decade. The demand for helium, particularly from Chinese importers and US end-users, is on the rise. The company is also set to benefit from the US Chips Act, which is expected to increase domestic demand for helium due to its critical role in semiconductor manufacturing. Investors can look forward to several upcoming milestones, including the start of a scoping study, drilling activities in the third quarter, and the initiation of an extended flow test. These initiatives are anticipated to drive significant progress towards the construction phase and enhance Helix Exploration's project pipeline within the Montana helium fairway.
