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37 min ago 2 min read
Helium exploration company Helix Exploration has commenced drilling of the Ollie 1 well at its Rudyard facility in Montana, US, with drilling completion targeted for 31 October.
It comes after the company’s Hereford Resources subsidiary was ordered to from the Darwin 1 and Weil 1 wells by the Montana Board of Oil and Gas Conservation (MBOGC) on 12 August.
The MBOGC has granted Helix a drilling permit for the Ollie well, which is set to be the fourth production well, targeting the extension of the larger northern dome.
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.
Bo Sears, CEO of Helix, said, “This represents the next stage of the company’s drilling campaign at the Rudyard field to increase production.”
It comes as the company awaits an MBOGC hearing on 15 October on its Darwin 1 and Weil 1 wells.
The regulator said its staff conducted a field inspection of Hereford’s operations and found multiple compliance issues, including gas being vented in connection with production from the 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.
