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19 min ago 2 min read
Helium producer Mendell Helium has taken full ownership of its “most successful” well in Kansas’ Hugoton gas field, as it considers measures to increase helium production.
The firm acquired the remaining 25% stake in the Nilson 22-1 well in Haskell County, which is currently shut in, from five third-party investors for $186,092 by issuing over three million new shares.
The unnamed investors had backed the well’s hydraulic fracturing work in 2024 with $170,000, which increased its flow rates.
It previously achieved raw-gas flow rates exceeding 100,000 cubic feet per day, with gas samples indicating helium concentrations of 0.61% – around 610 cubic feet per day of helium.
However, Mendell said production has remained below its potential, with the well not pumping while it reviews operating costs and negotiates improved pricing with its gas buyer.
It said water extracted alongside the gas is currently transported off-site by truck, with disposal typically costing $2.50–$3 per barrel.
“Mendell Helium has explored the possibility of connecting Nilson to a disposal well, which would enable it to increase pumping of the well, thereby potentially generating greater gas volumes,” it said.
Unlike the firm’s operations, where raw gas requires on-site treatment, Nilson is already connected to the Hugoton gas-gathering network, which delivers production to the Jayhawk gas processing plant.
This allows Mendell to sell a mixed gas stream containing helium, methane, and natural gas liquids without investing in its own on-site helium purification infrastructure.
Although no immediate development plans have been committed, Mendell said full ownership of Nilson gave it “far greater future opportunities” and would increase its revenue share.
Nilson is one of five Hugoton wells held by Mendell’s recently acquired subsidiary, alongside its higher-concentration helium in Fort Dodge.
