Helix Exploration [LON:HEX] was a highly anticipated debut for the London AIM market back in April. The company's shares were oversubscribed threefold, and Helix managed to raise GBP 7.5mn, well above the target raise of GBP 3.5 to 5mn. Apparently the order book for the stock exceeded £22mn.
The success of the listing is partly attributable to investor enthusiasm for both helium and popular East African explorer Helium One [LON:HE1]. Punters have one eye on the projected increase in demand for helium globally, which is heavily outstripping supplies, of which more later.
Helix Exploration's major Montana helium resource
Helix Exploration started with multiple confirmed helium reserves in three locations in what is called the Ingomar Dome in Montana. Helium volumes here have been estimated in the area of 856mn to 2.3bn cubic feet. Ingomar is part of the famous Montana Helium Fairway, which stretches from Wyoming to Saskatchewan in Canada.
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More good news hit the market in June, when Helix Exploration announced it had acquired the Rudyard project, a helium exploration project in Hill County in Montana. The company paid USD 250,000 for the project plus 600,000 new shares. Importantly, Rudyard already looks like it has real potential with two wells that have been favourably tested for helium grade and flow rates. Rudyard is estimated to host 0.48bn cubic feet of contingent helium resources.
With the money that it has raised, Helix Exploration said it would be carrying out further delineation of the size of the resource it has in Montana. Initial helium production has been targeted towards the end of next year.
What you need to know about the helium market
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