Source: Sharecast
The company announced on Wednesday that it has a binding letter of intent to buy an additional production well (Weil #1) and 640-acre leasehold from Global Helium for £230,000 in cash.
Meanwhile, a drilling contract has been signed for the Linda #1, located just one mile south from Helix's successful Darwin #1 well, which is awaiting the construction of a helium processing plant. Linda #1 will cost $1.3m to drill and complete, is expected to generate $4m per year in pre-tax cash flow.
"We are now starting a highly active phase for the company with the imminent production of helium at Rudyard this summer," said chief executive Bo Sears.
"We will be drilling at Linda #1 next month and have agreed to acquire the Weil #1 well on favourable terms, saving the company over a million dollars by acquiring a production ready well."
Shares were down 2.5% at 13.80p by 1329 GMT.