Interim Results

Helix Exploration PLC
25 June 2024
 

 

Helix Exploration PLC

 

("Helix Exploration" or "Helix" or the "Company")

 

Half-year Report

 

Helix Exploration, the helium exploration and development company focused on helium deposits within the 'Montana Helium Fairway', announces its unaudited interim results for the six month period ended 31 March 2024.

 

Chairman's statement

 

I am pleased to announce Helix Exploration's maiden interim results.  This is the Company's first interim results since the Company's successful admission to the AIM market of the London Stock Exchange on 9 April 2024 and covers the pre-IPO period to 31 March, 2024.

 

We decided to list in London because we believe it is the pre-eminent market for growth resource companies with a deep pool of investors, talent and a high standard of governance. London remains a world leading capital market for small-cap companies, and I am delighted to have been a part of bringing Helix Exploration to the London market.

 

Without the capital provided by our shareholders at the IPO, we would not be able to achieve our strategic aims and focus on early production at the Ingomar Project.  Drilling at Ingomar is on target to commence in Q3 2024.  A 30-day flow test of the appraisal well is anticipated to give sufficient technical data for the Company to commence detailed plant engineering and construction with a target for first gas before the end of 2025.

 

Our recent acquisition of Rudyard represents an important opportunity for Helix Exploration. It is a proven helium discovery with 480 million cubic feet of Contingent Resources that have an in-situ value of >$250m. Expanding our helium portfolio is a strategic priority and this acquisition represents an exciting addition that complements our flagship Ingomar Dome Project. It is a testament to the Helix team and the deep experience of our CEO Bo Sears that we were able to secure Rudyard for a total consideration of only $250,000, and that the majority of this consideration was paid in shares.

 

I would like to thank stakeholders who have supported the Company throughout the listing process and beyond.

 

 

The helium market

 

Helium is critical in our modern world, its applications for high technologies are indispensable in a number of applications including in the medical sector, high-tech manufacturing, defence, rocketry, computing, aerospace and multiple others. The sector is experiencing sustained demand growth over a number of years, driving the price of helium to grow at 20% CAGR over the last decade. Due to the acceleration in the technology sector, demand for helium is continuing to increase, with the current levels of supply unable to keep up, new sources of helium are required to balance the market.

 

Strategy

 

Helix is focused on the exploration and development of helium deposits within the 'Montana Helium Fairway', which extends from Wyoming USA to Saskatchewan Canada and hosts several known helium occurrences including production in Canada from the Weil Group and North American Helium. Ingomar represents a large anticlinal closure of 16,512 acres mapped at surface, in seismic and in drilling, located on the upthrown side of the deep-seated Sumatra Thrust.

 

Our strategic focus is on appraisal and early production at Ingomar Project. Drilling is targeted for Q3 2024, and first helium production targeted for Q4 2025. We remain committed to open and transparent communication with investors and the wider market as the project progresses through development.

 

Operations and Outlook

 

We have had a busy and exciting few months since listing on AIM. In April 2024 we announced a strategic partnership with Petroleum Consultants, LLC, the execution of this contract marked the initiation of our Phase 1 Work Programme and the first steps towards the delivery of a safe and successful drilling campaign in Q3 2024.  Petroleum Consultants have extensive operational experience within Montana and across the wider United States, particularly in managing exploration activities throughout the Rocky Mountains region.

 

At the end of April 2024, Helix announced it had executed a binding contract with Treasure State Drilling, LLC for the provision of their Cardwell KB-150 D1D Drilling Rig and equipment for the Company's Q3 2024 appraisal drilling campaign at the Ingomar Dome project.  The services of Treasure State Drilling forms a highly competent team boasting decades of combined experience in helium exploration and Rocky Mountain drilling. With these essential components in place, Helix is well positioned for the commencement of drilling at Ingomar Dome in Q3 2024.

 

In June 2024, the Company announced the results of a Scoping Study Economic Analysis conducted by Aeon Petroleum Consultants Corporation. The report demonstrated the potential for exceptional economic returns across a range of modelled scenarios with baseline results calculated as NPV8 of $303.1 million using a helium price of $550/Mcf and grade of 1.50% He and initial CAPEX requirement of only $19.7 million.  The Ingomar Dome Project is estimated to generate net revenue of $605.6 million after CAPEX, OPEX, tax and royalty over a 29-year life of mine.

 

Also in June 2024, the Company announced the execution of a Farm-In agreement whereby the Company acquired a 100% working interest in Rudyard Project covering 5,600 acres in Hill County, Montana.  Rudyard represents the acquisition of a discovery with previously identified up to 1.3% Helium flowed to surface from two wells drilled adjacent to the acquired leases.  Rudyard has gross Contingent Resources of 484 million cubic feet of helium with in-situ value of >$250 million at helium price of $550/Mcf.

 

We expect the next six months to be an incredibly busy period of growth and we look forward to drill testing the Ingomar Dome Project and Rudyard Project with a drilling campaign in Q3 2024. We will provide the market and our shareholders with updates on results of drilling, flow tests and updated economic model as exploration and appraisal progress on the two project areas. We continue to work towards our goal of first gas flow before the close of 2025.

 

 

David Minchin

Chairman

 

The Directors of the Company are responsible for the release of this announcement.

 

 

Enquiries

 

Helix Exploration

Bo Sears

via Camarco

David Minchin

info@helixexploration.com





Cairn - Nominated Adviser

Liam Murray

+44 (0)20 7213 0880

Ludovico Lazzaretti


James Western


 

Hannam & Partners - Joint Broker

Neil Passmore

+44 (0)20 7907 8502

 

Andy Crispin


 

Spencer Mignot

 

 

 

SI Capital - Joint Broker


Nick Emerson

+44 (0)14 8341 3500

Renato Rufus


Nick Briers


 

OAK Securities - Joint Broker

Jerry Keen

+44 (0)20 3973 3678

Henry Clark




Camarco - Financial PR

Emily Hall

+44 (0)20 3757 4980

Tilly Butcher

Billy Clegg

helixexploration@camarco.co.uk

 

 

Notes to Editors

 

Helix Exploration is a helium exploration company focused on the exploration and development of helium deposits within the 'Montana Helium Fairway'. Founded by industry experts with extensive experience of helium systems in the US, the Company's assets comprise of 52 leases over the Ingomar Dome; a large closure of 16,512 acres with P50 unrisked prospective helium resource of 2.3Bcf and upside of 6.7 billion cubic feet. Historic drilling and/or testing has identified gas in all target reservoir horizons.

 

Helix Exploration will focus on a drilling campaign and early production at the Montana Ingomar Dome Project.  An aggressive development timeline will see a drilling campaign targeted for Q3 2024 and first helium production targeted for Q4 2025.  Helix is committed to open and transparent communication with investors and the wider market as the project progresses through development.

 

The Company's Admission Document, and other information required pursuant to AIM Rule 26, is available on the Company's website at https://www.helixexploration.com/.

 


HELIX EXPLORATION PLC - COMPANY NUMBER 15160134

CONDENSED INTERIM FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME - FOR THE PERIOD ENDING 31 MARCH 2024

 

 

 

 




Unaudited
Period ended 31 March 2024

 

Note

£'000

Continuing Operations



Revenue from continuing operations


-




Costs associated with listing


(538)

Public and investor relations


(40)

Travel


(28)

Administrative expenses

7

(107)




Operating loss

 

(713)

 



Loss before taxation

 

(713)

 



Taxation on loss or ordinary activities

8

-




Loss for the period from continuing operations

 

(713)

 



Items that may be reclassified to profit or loss

 

-




Total comprehensive loss for the period attributable to shareholders from continuing operations

 

(713)

 



Basic & dilutive earnings per share - pence

9

                                 (4.66)

 

 

 

The notes form part of the unaudited condensed interim financial statements


HELIX EXPLORATION PLC - COMPANY NUMBER 15160134

CONDENSED INTERIM FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION - AS AT 31 MARCH 2024

 

 




Unaudited

As at 31 March
2024

 

Note

£'000

 

 

 

CURRENT ASSETS

 


Cash and cash equivalents


340

Trade and other receivables


106

TOTAL CURRENT ASSETS

 

446

TOTAL ASSETS

 

446

 



CURRENT LIABILITIES

 


Trade and other payables


243

TOTAL CURRENT LIABILITIES

 

243

TOTAL LIABILITIES

 

243

NET ASSETS

 

203

 



EQUITY

 


Share capital

10

227

Share premium

10

689

Retained earnings


(713)

TOTAL EQUITY

 

203

 

 

 

 

The notes form part of the unaudited condensed interim financial statements


 

HELIX EXPLORATION PLC - COMPANY NUMBER 15160134

CONDENSED INTERIM FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY - AS AT 31 MARCH 2024

 

 

 

 

 

 



Share capital

Share premium

Retained earnings

Total equity


£'000

£'000

£'000

£'000

Loss for period

-

-

(713)

(713)

Total comprehensive loss for period

-

-

(713)

(713)

 





Transactions with owners in own capacity





Ordinary Shares issued in the period

227

689

-

916

Transactions with owners in own capacity

227

689

-

916

Balance at 31 March 2024

227

689

(713)

203

 

 

 

 

 

 

 

 


HELIX EXPLORATION PLC - COMPANY NUMBER 15160134

CONDENSED INTERIM FINANCIAL STATEMENTS

STATEMENT OF CASHFLOWS - FOR THE PERIOD ENDING 31 MARCH 2024

 

 

 

 




Unaudited
 Period ended 31 March 2024

 

Note

£'000

Cash flow from operating activities

 


Loss for the financial period


(713)

Adjustments for:



Shares issued in lieu of services


120

Cash generated from operations

 

(593)

 



(Increase) in trade and other receivables


(106)

Increase in trade and other payables


243

Cash generated from operations

 

(456)

Net cashflow from operating activities

 

(456)

 



 



Cash flows from financing activities

 


Proceeds from issue of shares


796

Net cash flow from financing activities

 

796

 



Net increase in cash and cash equivalents

 

340

Cash and cash equivalents at beginning of the period


-

Foreign exchange effect on cash balance


-

Cash and cash equivalents at end of the period

 

340

 

 

The notes form part of the unaudited condensed interim financial statement


HELIX EXPLORATION PLC - COMPANY NUMBER 15160134

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDING 31 MARCH 2024

 


1              General information

Helix Exploration Plc ("the Company") was incorporated on 23 September 2023 in England and Wales with Registered Number 15160134 under the Companies Act 2006.

 

The address of its registered office is Eccleston Yards, 25 Eccleston Place, London SW1W 9NF, United Kingdom.

The principal activity of the Company and its subsidiaries collectively referred to as "the Group" is the development and exploitation of small-scale gas leases which will be held via its 100 per cent. interest in Hereford Resources, LLC ("Hereford") in the United States of America state of Montana. The acquisition of Hereford was completed post period end and hence stand-alone Company financial statements have been presented.

2              Accounting policies

IAS 8 requires that the directors shall use their judgement in developing and applying accounting policies that result in information which is relevant to the economic decision-making needs of users, that are reliable, free from bias, prudent, complete and represent faithfully the financial position, financial performance and cash flows of the entity.

3              Basis of preparation

The unaudited condensed interim financial statements ("interim financial statements") have been prepared in accordance with the requirements of the AIM rules and international accounting standards in conformity with the requirements of the companies act 2006 and the companies act 2006 applicable to companies reporting under UK-adopted international accounting standards ("IFRS").

The interim financial statements have been prepared in accordance with IAS 34 "interim financial statements". The interim financial statements do not include all disclosures that would otherwise be required in a complete set of financial statements but have been prepared in line with IFRS. As these interim financial statements represent the first set of financial statements prepared by the Company they are unable to rely on the policies adopted in the last year end reports. Therefore the relevant policies adopted have been detailed at note 5.

The interim financial statements cover the period from incorporation on 23 September 2023 until 31 March 2024. As this covers the period from incorporation no comparatives have been provided.

The interim financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense.

The interim financial statements do not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and have not been audited.

The interim financial statements are presented in British Pounds sterling ("£'000") unless otherwise stated, which is the Company's presentational currency.

The performance of the Company is not affected by seasonal factors.

4              Going concern

The directors have assessed the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future.

Subsequent to period end on 9 April 2024, the Company completed its listing on the AIM segment of the London Stock Exchange and alongside admission secured a £7.5 million fundraise. This gives the Company significant runway in relation to going concern and hence the directors are comfortable adopting the going concern basis in preparing these interim financial statements.

5              Accounting policies

As these financial statements represent the first set of financial statements prepared by the Company they can not rely on assuming the same accounting policies, presentation and methods of computation that were adopted in the previous years audited accounts. Therefore the significant accounting policies adopted  during the period are listed below.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, and demand deposits with banks and other financial institutions.

Trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the period and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Equity

Share capital is determined using the nominal value of shares that have been issued.

The share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium account, net of any related income tax benefits.

Retained losses includes all current and prior period results as disclosed in the income statement.

6              Critical accounting estimates and judgments

In preparing the interim financial statements, the directors are required to make judgments on how to apply the Company's accounting policies and make estimates about the future. Estimates and judgements are continuously evaluated based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may deviate from these estimates and assumptions.

The directors consider the key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the period, and have concluded that there is no material affect on the interim financial statements.

7              Administrative expenses

Directors' fees

(98)

Other administrative expenses

(9)


(107)

8              Taxation

A reconciliation of the value from the statement of comprehensive income is detailed below:

 


 

Period ended

31 March 2024                      £'000

Corporation tax on the results for the period


-

A reconciliation of tax charge is provided below:



Loss before taxation per the financial statements


(713)

Tax credit at the weighted average of the standard rate of corporation tax in UK of 19%:


(135)

Tax effect of capital items disallowed for corporation tax purposes


-

Current period losses for which no deferred tax asset is recognised


135

Income tax charge for the period


-

 

9              Earnings per Ordinary Share

There is no difference between the diluted loss per share and the basic loss per share presented. Share options and warrants could potentially dilute basic earnings per share in the future but were not included in the calculation of diluted earnings per share as they are anti-dilutive for the period presented.

10           Share capital & share premium

 


Ordinary shares

Share       capital

Share premium

Total


 

£'000

£'000

£'000

At 23 September 2023

-

-

-

-

Issue of ordinary shares 1

5,500,000

55,000

-

55,000

Issue of ordinary shares 2

17,220,000

172,200

688,800

861,000

At 31 March 2024

22,720,000

227,200

688,800

916,000

 

1On incorporation, the Company issued 5,500,000 ordinary shares of £0.01 at their nominal value of £0.01.

2 On 14 December 2023, the Company issued 17,220,000 ordinary shares of £0.01 at a subscription price of £0.05 per share.

There is currently an authorised share capital limit in place for the Company which is subject to review at the next Annual General Meeting.

11           Related party transactions

Directors remuneration

During the period directors were paid the following remuneration:

 

-       Christian Bolletta: £18,450

-       David Minchin: £80,000*

 

*Mr Minchin deferred £20,000 of his salary to support the working capital position of the Company during the IPO process and this was owing at period end.

12           Ultimate controlling party

As at 31 March 2024, there was no ultimate controlling party of the Company.

13           Events subsequent to period end

Change of director and appointment of CFO

On 3 April 2024, Ryan Neates was appointed as a Director and Chief Financial Officer of the Company. On 3 April 2024, Christian Boletta resigned as a Director of the Company.

 

Fundraising and Initial Public Offering (IPO) on AIM market

On 9 April 2024 the Company completed its Initial Public Offering (IPO) and listed on the AIM market. The Company raised gross proceeds of £7,500,000 through the issue of 75,000,000 shares at £0.10 per share.

 

As part of the IPO the Company agreed to grant the following warrants and options over ordinary shares:

 

i)          Advisor warrants

 

 Advisor

#

Grant date

Exercise Price (£)

Time to maturity

Cairn Financial Advisors LLP

1,222,400

04/04/24

0.10

7 years

Orana Corporate LLP

1,222,400

04/04/24

0.10

5 years

Christian Boletta

1,833,600

04/04/24

0.10

5 years

Barnard Nominees Ltd

250,000

04/04/24

0.10

2 years

H&P Advisory Limited

220,000

04/04/24

0.10

2 years

SI Capital Limited

75,000

04/04/24

0.10

2 years

 

ii)          Director options

 

Director

#

Grant date

Exercise Price (£)

Time to maturity

Wheeler M Sears

4,612,001

04/04/24

0.10

10 years

David Minchin

4,612,001

04/04/24

0.10

10 years

Ryan Neates

1,000,000

04/04/24

0.10

10 years

 

The warrants vest in 3 equal tranches on the completion of different share price targets.

 

Appointment of directors

Upon the successful admission to the AIM market the following people were appointed as directors of the Company:

 

·      Wheeler ("Bo") M. Sears Jr  (CEO)

·      Gregg Peters (Independent Non-Executive Director)

·      Keith Spickelmier (Independent Non-Executive Director)

 

Issue of options

On 26 April 2024, the Company issued the following options to the non-executive directors of the Company as per below:

 

Director

#

Grant date

Exercise Price (£)

Time to maturity

Gregg Peters

1,000,000

26/04/24

0.10

10 years

Keith Spickelmier

1,000,000

26/04/24

0.10

10 years

 

The warrants vest in 3 equal tranches on the first, second and third anniversary of admission date.

 

Acquisition of Hereford Resources, LLC

On 9 April 20024, Helix Exploration Plc completed the acquisition of the entire membership interest of Hereford Resources, LLC in exchange for 20,000,000 ordinary shares in the Company. These shares were issued on IPO and have subsequently been assigned a deemed value equating to that of the listing price of £0.10.

 

This acquisition does not constitute a business combination as Hereford does not satisfy the necessary criteria to be classified as a business and is therefore treated as an asset acquisition.

The fair value of the net assets of Hereford at acquisition was as follows:

 




       £'000

Exploration leases



387

Total net assets

 

 

387





Total identifiable net assets acquired


 

387



 

 

Consideration1


 

2,000



 

 

Intangible assets acquired


 

1,613

 

Acquisition of Rudyard Leases

On 20 June 2024, Helix Exploration Plc announced the execution of a Farm-In agreement whereby the Company has acquired a 100% working interest in 5,600 acres in Hill County, Montana, ("Rudyard") from Adam Standiford, a consultant to the Company for $250,000 USD in cash and shares. In addition, Mr Standiford will also receive 600,000 new ordinary shares in the Company at a price of 10 pence per share as an introducer fee pursuant to his consultancy agreement detailed in the Company's admission document.

14           Approval of the financial statements 

The interim financial statements were approved by the board of directors on 25  June 2024.

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UK 100

Latest directors dealings