Rudyard – Ollie #1 Well Spud

Helix spuds Ollie #1 well but faces a regulatory pause on current production.

What the company is saying

Helix Exploration PLC announces that the Ollie #1 well at the Rudyard field was spudded on 14 September 2026, aiming to become the fourth production well in the Northern Dome. The company highlights its operational progress, noting three existing high-grade, commercial helium wells—Darwin #1, Linda #1, and Weil #1—already connected to the gathering system and PSA plant. Management, led by CEO Bo Sears, frames this as the next stage in a broader drilling campaign to increase production, with Ollie #1 targeting the proven Souris River and Red River formations. The company emphasizes operational control after acquiring its own drilling rig in summer 2026 and outlines plans for further expansion, including surveying new well locations and purchasing a new membrane to boost throughput. Helix also references its acquisition of the Keyes Helium Complex in Oklahoma, positioning itself as an independent US helium producer with both upstream and liquefaction infrastructure. The announcement acknowledges a current regulatory pause on production at Rudyard, requested by the Montana Board of Oil and Gas Conservation as of 3 September 2026.

What the data suggests

The Ollie #1 well was spudded two days before the announcement and is planned to reach a total depth of approximately 5,500 ft, with drilling expected to take 21 days. This well is located about one mile north of Weil #1 and, if successful, will be tied into existing infrastructure. Helix currently operates three producing wells at Rudyard, with production commencing in February 2026 and first commercial sales in July 2026. The company has acquired the Keyes Helium Complex, one of only six operational helium liquefaction facilities in the United States, but provides no quantitative data on throughput, sales volumes, or financial performance from this asset. The announcement confirms a regulatory pause on production at Rudyard as of early September 2026, but does not specify the duration or financial impact. Expansion plans, including the purchase and installation of a new membrane, are described but lack concrete timelines or quantified capacity increases. The company's disclosures are operationally specific but financially opaque, with no revenue, cost, or margin figures provided.

Analysis

The announcement is operationally detailed, confirming the spudding of the Ollie #1 well and providing context on existing production and infrastructure. However, much of the language is forward-looking, with several claims about future production increases, expansion plans, and the benefits of recent acquisitions. The company highlights its strategy for long-term growth and integration, but does not provide quantitative financial data (revenue, profit, cash flow) or specific throughput/production targets for the new assets. The planned purchase and installation of a new membrane and the recent acquisition of the Keyes Helium Complex both signal significant capital outlays, yet the timeline for realizing increased sales or operational benefits is not immediate and remains contingent on future events (e.g., successful flow testing, regulatory clearance, sales arrangements). The tone is optimistic and promotional, particularly regarding the company's positioning and growth potential, but the actual realised progress is limited to operational milestones rather than financial or production outcomes.

Risk flags

• ●The regulatory pause on production at Rudyard, requested by the Montana Board of Oil and Gas Conservation as of 3 September 2026, introduces uncertainty about near-term revenue and operational continuity. Without clarity on the duration or conditions for lifting the pause, production and sales growth are at risk.
• ●The company's expansion plans—including the tie-in of Ollie #1, surveying of additional well locations, and installation of a new membrane—are contingent on successful drilling, flow testing, and regulatory approvals. Delays or failures at any stage could defer or reduce anticipated production gains.
• ●Financial disclosure is incomplete, with no revenue, cost, or cash flow figures provided for either the Rudyard field or the Keyes Helium Complex acquisition. This limits an investor's ability to assess the company's financial health, capital requirements, or the economic impact of operational milestones.

Bottom line

Helix Exploration has spudded the Ollie #1 well at Rudyard, aiming to expand production capacity, but faces an unresolved regulatory pause that clouds the near-term outlook. While operational progress is evident, the absence of financial metrics and the lack of clarity on when production can resume or scale up make it difficult to gauge the company's immediate value proposition. The acquisition of the Keyes Helium Complex positions Helix for vertical integration, but the announcement does not quantify the financial or operational benefits. Investors should watch for updates on the regulatory pause, flow test results from Ollie #1, and concrete figures on production and sales. The most important takeaway is that execution risk remains high until regulatory and operational uncertainties are resolved.

Announcement summary

(AIM: HEX, OTCQB: HEXFF, LSE: HEX) Helix Exploration PLC announced that the Ollie #1 well at the Rudyard field was spudded on 14 September 2026. The company currently has three production wells at Rudyard—Darwin #1, Linda #1, and Weil #1—which have all produced high grade, commercial helium and are connected to the gathering system supplying the PSA plant. Ollie #1 is intended to be the fourth production well in the Northern Dome of the Rudyard field, targeting the Souris River and Red River formations, and is located approximately one mile north of Weil #1. The Ollie #1 well has an estimated total depth of approximately 5,500 ft and is expected to take approximately 21 days to drill, after which wireline logging, extended flow testing, and gas analysis will be conducted. Subject to successful flow testing and gas analysis, Helix intends to tie the well into the existing gathering system at Weil #1 and connect it to the PSA Plant within the current membrane capacity. The company is surveying several additional helium well locations as candidates for the next well following completion of Ollie #1, as part of its planned production expansion programme. Bo Sears, Chief Executive Officer, stated that drilling Ollie #1 represents the next stage of the company's drilling campaign at Rudyard to increase production, and will be carried out in parallel with the planned purchase and installation of a new membrane, which is expected to increase the available throughput capacity of the facility and, subject to production volumes and sales arrangements, support increased sales volumes in due course. The Montana Board of Oil and Gas Conservation permitted the Ollie #1 well in a timely manner. Helix acquired its own drilling rig in summer 2026, giving it full operational control over its field expansion programme. Production at Rudyard commenced in February 2026 through an on-site PSA processing facility, with first commercial sales in July 2026 to an industrial gases group. Production is currently subject to a regulatory pause requested by the MBOGC, as announced on 3 September 2026. Helix recently acquired the Keyes Helium Complex in Oklahoma, one of only six operational helium liquefaction facilities in the United States, making Helix an independent US helium producer with both upstream production and liquefaction infrastructure. The acquisition enables Helix to process both its own and third-party helium and support the North American helium market with flexible, independent liquefaction capacity. Helix's assets feature low-cost production, established infrastructure, significant and fully funded expansion potential, and a strategy focused on building a fully integrated helium business for sustainable long-term growth.

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