Mendell Helium plc (LSE:MDH) has acquired the remaining 25% interest in the Nilson 22-1 well in Haskell County, Kansas, increasing its ownership to 100% through a share-based transaction valued at approximately US$186,000.
The acquisition consideration consists of 3,094,000 new ordinary shares issued at 4.48 pence per share. Mendell said the transaction was completed without paying a control premium to the minority interest holders.
The Nilson well is located within the Hugoton gas field in south-western Kansas and produces helium, methane and natural gas liquids. The well is connected to an established gas gathering network and the Jayhawk processing plant, allowing production to be processed without requiring on-site gas purification facilities.
According to the company, the well underwent hydraulic fracturing in late 2024, resulting in flow rates exceeding 100 thousand cubic feet (Mcf) per day.
Mendell described Nilson as one of the higher-producing wells in the region following the completion of the stimulation programme.
The company also identified potential opportunities to increase production from the well, although further development will depend partly on its ability to reduce water disposal costs associated with operations.
By acquiring the outstanding minority interest, Mendell will receive the full revenue attributable to Nilson production, rather than its previous 75% share.
The transaction also provides the company with complete ownership of the asset ahead of planned pricing negotiations with its existing off-taker.
Mendell said the negotiations will take place against a backdrop of higher helium and methane market prices. Any changes to future sales arrangements will depend on the outcome of those discussions.
The Nilson acquisition forms part of Mendell’s wider operations in Kansas, where the company holds interests in five producing wells within the Hugoton gas field.
These assets benefit from existing gas gathering and processing infrastructure, enabling the company to generate revenue from multiple gas products without installing dedicated purification equipment at each well.
Mendell also operates helium-focused assets in the Fort Dodge area through its subsidiary M3 Helium, including the Rost 1-26 and Rost 2-26 wells.
Following completion of the Nilson transaction, the company will have full ownership of the well and its associated production revenues, while continuing to evaluate operational improvements and commercial arrangements across its Kansas portfolio.
About Mendell Helium
Mendell Helium plc (LSE:MDH) is a London-listed helium exploration and production company operating primarily in Kansas, United States, through its subsidiary M3 Helium. Its activities include helium extraction and the production of methane and natural gas liquids.
The company’s portfolio includes helium-focused wells in the Fort Dodge area, such as Rost 1-26 and Rost 2-26, alongside interests in producing wells in the Hugoton gas field. Its operations use a combination of on-site gas treatment facilities and established third-party gathering and processing infrastructure.
Leave a Reply