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Helium exploration company Helix Exploration has completed drilling of its fourth well at its Rudyard facility in Montana, US, which will be subject to gas composition analysis and flow testing to assess helium concentrations.
The Ollie 1 well adds to Helix’s three production wells at Rudyard – Darwin 1, Weil 1 and Linda 1.
Subject to flow testing and gas analysis, Helix aims to tie the Ollie well into the existing gathering system at Weil 1 and connect it to the pressure swing adsorption plant.
Helix logged its highest mudlog readings of any Rudyard well drilled at 4,800 ppm. While an encouraging indication, it does not directly measure recoverable reserves or commercial flow concentration.
It follows the company’s Hereford Resources subsidiary being ordered to from the Darwin 1 and Weil 1 wells by the Montana Board of Oil and Gas Conservation (MBOGC) on 12 August.
The regulator said its staff found multiple compliance issues, including gas being vented in connection with production from the wells during a field inspection of Hereford’s operations.
The company awaits a MBOGC hearing on 15 October on its Darwin 1 and Weil 1 wells.
Until the operations comply with board rules or the board grants an applicable exception or other authorisation, MBOGC said continued production would constitute illegal production under ARM 36.22.1245.
Helix has not commented on MBOGC’s specific claims but said regulatory processes relating to helium production in Montana have not yet been clearly defined and has suspended sales pending the scheduled hearing.
The company’s next target at its Rudyard site is the Ross 1 well. Subject to MBOGC approval, the Ross 1 well is expected to spud by 31 October.
