Helix Exploration PLC (LSE:HEX) has agreed to acquire Montana-based Treasure State Drilling LLC (TSD) in a US$600,000 all-share transaction, securing ownership of the drilling rig that has been used to drill each of the company’s existing wells at its Rudyard Helium Project.
The acquisition was completed at a valuation below an independent appraisal and is expected to deliver meaningful cost savings by eliminating day-rate expenses as well as mobilisation and demobilisation charges. By bringing the rig in-house, Helix gains direct control over drilling schedules and equipment availability while reducing per-well development costs across its planned multi-well drilling campaign.
The rig is already located at the Rudyard project and is specifically suited to the geological formations targeted by Helix. Management said it is currently the only available drilling unit in north-central Montana, providing a strategic advantage in a region experiencing increasing oil and gas activity. Ownership of the rig is expected to enhance operational flexibility and reduce reliance on third-party contractors.
Helix intends to operate TSD as a wholly owned subsidiary while maintaining its commercial independence. When the rig is not required for Helix’s own activities, the company may seek third-party drilling contracts, creating an opportunity to generate additional revenue and potentially offset operating costs. Management believes the transaction will improve the group’s overall cost structure and support its long-term development plans.
Despite the operational benefits of the acquisition, Helix’s investment profile continues to be weighed down by the absence of revenue, ongoing losses and increasing cash burn, although the company remains debt-free. Technical indicators provide some support, reflecting a strong share price trend and positive momentum, while valuation metrics remain limited by continued losses and the lack of dividend income.
More about Helix Exploration Plc
Helix Exploration PLC is a helium exploration and development company focused on advancing the Rudyard Helium Project in northern Montana, a key area within the Montana Helium Fairway. The company is listed on both AIM and the OTCQB market and is targeting the development of helium resources in a region known for its oil and gas potential. Helix leverages management’s experience in U.S. helium systems as it seeks to build a portfolio of production and exploration assets.
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