Helix Releases Scoping Study With Promising Economic Projections

Helix Exploration released the results of the Scoping Study conducted by independent experts to help optimise the development and understand the economics of a potential discovery at Ingomar Dome, Montana. The key elements of the scoping study were that initial capex was ~US$20mm, which involves a pressure swing adsorption plant capable of taking 10mmcf/d of raw gas with the assumption of a 1.5% helium content. Based on the type curve for production from each well, three wells are expected for initial production in 2025 with a plant expansion to 20mmcf/d in 2027, with 3 additional wells and a further 7 wells planned for 2030 – 2035, to maintain pressure and flow rates to the plant. The natural gas produced as a by-product will feed a co-generation facility to reduce power costs to the plant. The economics were run at a base case helium price of US$550/mcf and a discount rate of 8% and resulted in an NPV of US$303mm. Helix believes that the project NPV would breakeven either at a grade as low as 0.4% or down to a price of US$125/mcf.

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