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
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
|
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Henry Clark
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Camarco - Financial PR
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
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
|
|
Period
ended
31 March
2024
£'000
|
|
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
|
|
Period
ended
31 March
2024
|
|
Loss
attributable to shareholders of Helix - £'000
|
(713)
|
|
Weighted
number of ordinary shares in issue
|
15,288,211
|
|
Basic & dilutive earnings
per share from continuing operations - pence
|
(4.66)
|
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.