Home » Posts tagged 'M3 Helium'
Tag Archives: M3 Helium
Mendell Helium #MDH – Nilson well update & Extension of Option
Mendell Helium is pleased to provide an update on the rapidly growing production at the Nilson well in Kansas, USA owned by M3 Helium Corp. (“M3 Helium”) which is now ranked in the top 1% of producing wells (by volume) in the Hugoton gas field. The Company also announces that, further to the announcement on 1 October 2024, the Company and M3 Helium Corp. (“M3 Helium”) have agreed to extend the date by which the option the Company has to acquire M3 Helium (the “Option”), to 31 March 2025 and provides an update on the proposed acquisition of M3 Helium transaction.
As announced on 27 June 2024, the Company has an option to acquire M3 Helium, a producer of helium which is based in Kansas and holds an interest in nine wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights
- Nilson production has passed 100 Mcf/day at the start of the week and continues to rise by over 2 Mcf per day
- Based on Scout Energy Partners’ (“Scout Energy”) data, Nilson is in the top 1% of producing wells (by volume) in the Hugoton (Kansas)
- Performance of the well provides evidence of the viability of producing from the Towanda zone, thereby creating a new strategy in the Hugoton field.
- This performance further enhances the potential value of the farm in to Scout Energy’s acreage
Background
On 26 September 2024, the Company announced a second, significantly larger frack, on the Nilson well owned by M3 Helium. This programme was innovatively funded by local investors and one of the contractors who committed US$170,000 in aggregate to cover the costs for a 25% economic interest in the well. The frack injected 210,126 gallons of slickwater along with 128,500 pounds of sand. As far as M3 Helium’s management are aware, this was the Hugoton field’s first large water-based frack stimulation in several decades.
Typically, post-frack production results in an upward spike and then a subsequent decline in the well’s production. However, in Nilson’s case, production has been steadily rising each day. When the Company announced its initial findings on Nilson on 11 November 2024, it reported that the well’s production was increasing by a little under 1 Mcf per day. However, since then, production has been accelerating and, based on the past seven days, is now increasing by over 2 Mcf per day.
At current levels, Nilson is producing a little under 20 Mcf of helium each month (based on a helium composition of 0.6%).
This is illustrated in the graph below:
The Company expects Nilson’s production to continue to grow until water levels within the well reduce. At present, there is insufficient data to determine where the Nilson well might peak but the table below illustrates the well revenue capability between its existing production rate through to higher levels.
| Production(Mcf/day) | 100 | 150 | 200 | 250 | 300 |
| Daily revenue ($) | 285 | 428 | 570 | 713 | 855 |
| Monthly revenue ($) | 8,550 | 12,825 | 17,100 | 21,375 | 25,650 |
| Annual revenue ($) | 102,600 | 153,900 | 205,200 | 256,500 | 307,800 |
The above figures are based on a helium sale price of US$350 per Mcf and a NGL (natural gas liquids) sale price of US$0.75 per Mcf. Helium composition is assumed to be 0.6%.
As with all producing wells owned by M3 Helium (other than Rost), the Nilson well is connected to Scout Energy’s gathering system and, from there, to the Jayhawk processing plant. M3 Helium’s business model delivers gas production from the wellhead to the gathering system with no requirement to separate, refine or otherwise transport the production. Scout Energy accounts for the production to M3 Helium on a monthly basis.
The theory behind Nilson
M3 Helium’s strategy on the Nilson well was based on a “gas bubble theory” or transition zone theory that offers the potential of accessing what could be a substantially untapped gas reservoir below the water level that, to date traditional oil & gas explorers would treat with caution. The Hugoton gas field has been prolific with over 7,000 wells and over 18.5 trillion cubic feet of gas produced. However, conventional drilling focused on the interior of the field where water levels were low and gas production was consistent. As the field has been in production for over 90 years, flow rates in the interior are not as significant as they once were.
The Nilson well has gone some way to prove:
- The Hugoton gas field is not depleted – modern or unconventional techniques can produce significant results
- The lower Towanda reservoir is potentially a significant source of gas and helium
- Sizeable fracks in the tight rock in this part of the Hugoton gas field can yield impressive results
- Water production within the wells is manageable at present
The significance of Nilson’s performance, aside from the value within this well, is that it provides a reference point and a pathway with which to develop other wells in the region, particularly within the farm in agreement with Scout Energy referred to above. With the success of this well, M3 Helium is now exploring the idea of a larger frack on future wells to stimulate even greater production.
The Towanda reservoir
The Hugoton field produces from five different formations (or members) which are collectively called the “Chase Group”. Each of the five members mostly consist of dolomite but there are also lithological and petrophysical elements. Each member progressively dips eastward into a transition zone where gas containing helium and water coexist. That is the target area for M3 Helium and, specifically, the fourth member called Towanda.
The Nilson well’s Towanda formation consists of a 40 foot thick section of dolomite which is likely cherty and tight with shale breaks. M3 Helium’s frack applied methods employed by the shale industry, as opposed to methods applied to conventional gas reservoirs.
M3 Helium believes that the Towanda formation, and each other member, will have its own transitional fairway where significant reserves could be untapped and management believes that the methods being employed will lead to a deeper understanding of the field.
Transaction update
Since the Option was granted, M3 Helium’s business has undergone some significant but very positive developments:
- It has signed a farm in agreement with Scout Energy over 161,280 acres of the Hugoton gas field, one of the largest natural gas fields in North America
- The Nilson well has proved a new strategy for production in the Hugoton gas field
- The Rost well at Fort Dodge, with a 5.1% helium content, has shown potential to be a far higher producer than originally envisaged
- M3 Helium has acquired two further producing wells (Bearman, Demmit) on the western side of the Hugoton gas field in Stanton County, Kansas
Due to the ongoing change to M3 Helium’s activities, the Company and M3 Helium have agreed to extend the date by which the Option can be exercised to 31 March 2025. Terms under the Loan Facility have been correspondingly extended. As previously announced, the exercise of the Option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document (the “Admission Document“). Substantial progress has been made on preparing a competent person’s report for M3 Helium’s assets, including the new opportunities described above.
There are no other changes to the Option which will be exercised through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. At the current share price, this would value the enlarged group at approximately £3.5 million.
As announced on 6 November 2024, Nick Tulloch, CEO of Mendell Helium, was appointed as Chairman of the board of M3 Helium and the two companies are working closely together both to finalise the exercise of the Option and to continue the ongoing development of M3 Helium.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “Hugoton has been one of the most prolific gas fields in the world, producing for over 90 years. Conventional wisdom is to stay in the centre of the field where production is dependable and water levels are low.
“M3 Helium has challenged – and changed – that conventional wisdom. The Nilson well, located on the eastern edge of the field and drilled into the lower Towanda reservoir has indicated not only that this reservoir is highly prospective for gas and helium but that a significant frack can stimulate production, even with higher water levels. The frack was 10 weeks ago but production at the well is still rising. Already Nilson is one of the best performing wells in terms of gas volume in the Hugoton and, at the moment, is continuing to increase in volume.
“The success of Nilson provides a blueprint for our strategy with respect to the agreed Scout Energy farm in over 161,280 acres in the Hugoton field. This acreage includes land within the transition zone and that is where we intend to focus our resources. Interest from local partners, including a preliminary indication of support from a Kansas bank, gives us confidence that there will be funding available for our operations.
“M3 Helium’s model demonstrates that economic volumes of helium can be produced within an hour’s drive of one of the world’s biggest helium processing plants and with full access to the local gathering system.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
| Mendell Helium plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
nick@mendellhelium.com https://mendellhelium.com/ |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium, formerly Voyager Life plc, announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in nine wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The nineth well, Rost, is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “similar” expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.
Mendell Helium #MDH – Update on progress
Mendell Helium is pleased to provide the following overview of M3 Helium Corp.’s (“M3 Helium“) assets following a visit in October 2024 by Nick Tulloch, Chief Executive Officer of the Company, to Kansas, USA.
As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp., a producer of helium which is based in Kansas and holds an interest in nine wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights
M3 Helium has three potential “company maker” projects
- Farm in to Scout Energy Partners’ Hugoton acreage
- 5.1% helium in its high pressure Rost 1-26 well
- “Big frack” at its Nilson well is producing rising flow rates
Farm in to Hugoton acreage
As announced on 6 November 2024, M3 Helium entered into a farm in agreement with Scout Energy Partners (“Scout Energy”) covering 161,280 acres (252 square miles) of the Hugoton field, one of the best known gas fields in the world. The agreement includes a minimum target of 25 new wells but M3 Helium estimates a potential 100 – 200 well opportunity within this acreage.
All production from new wells will be delivered to Scout Energy’s gathering system and the Jayhawk processing facility (which produces 4% of the world’s helium). The offtake is based on a fixed helium price with an annual price escalator based on the consumer price index through to the end of 2029. The partnership with Scout Energy also includes discounted royalties and operating expenses. No payments are due from M3 Helium until drilling commences or 31 March 2025, if drilling has not commenced prior to 31 March 2025 (and there are no penalties on M3 Helium in the event that it does not proceed with the agreement).
In addition, this exclusive agreement with Scout Energy includes a right of first refusal over any other farm outs in Scout Energy’s 1 million acres in Kansas.
Rost 1-26 well in Fort Dodge
M3 Helium’s flagship well, located in its Fort Dodge prospect, was tested by Shamrock Gas Analysis, Inc. as containing a gas composition of 5.1% helium in July 2024. Thurmond-McGlothlin, LLC also tested a well pressure at 302.7 psi in July 2024. The flow rate was measured at 47,100 cubic feet per day (47.1 Mcfd), with this result being achieved even though brine levels were 1,058 feet over the perforations.
As announced on 9 September 2024, M3 Helium commenced the installation of its Pressure-Swing Adsorption (“PSA”) modular processing unit to enable purification of helium onsite along with de-watering the well ahead of production. The latter exercise has led to two conclusions.
Firstly, the likely level of water hauling could be 800-1,000 barrels per day in which case M3 Helium will make use of a nearby former oil well which can be repurposed as a disposal well. Although there will be an upfront cost, this will be more economic, and payback is expected within months.
Secondly, and more significantly, expectations are that potential flow rates from the Rost well could exceed previous expectations. The table below illustrates the well’s revenue capability between its existing production rate through to the maximum capacity of the onsite PSA.
| Production(Mcf/day) | 50 | 150 | 250 | 500 | 750 |
| Daily revenue ($) | 765 | 2,295 | 3,825 | 7,650 | 11,475 |
| Monthly revenue ($) | 22,950 | 68,850 | 114,750 | 229,500 | 344,250 |
| Annual revenue ($) | 275,400 | 826,200 | 1,377,000 | 2,754,000 | 4,131,000 |
The above illustrations are based on a helium sale price of US$300 per Mcf and assumes nil value for any other gases or liquids produced by the well.
Nilson “big frack”
On 26 September 2024, the Company announced a second, significantly larger frack, on the Nilson well owned by M3 Helium. This programme was innovatively funded by local investors and one of the contractors who committed US$170,000 in aggregate to cover the costs for a 25% economic interest in the well.
The frack injected 170,000 gallons of gelled water along with 150,000 pounds of sand. As far as M3 Helium’s management are aware, this was the Hugoton field’s first large water-based frack stimulation in several decades.
The response from the Nilson well has been impressive. Typically post-frack production results in a spike and then a subsequent decline in the well. However, in Nilson’s case, production has steadlily risen by a little under 1 Mcf per day at around 1 cubic foot per 2 minutes. This is illustrated in the graph below:
At present, there is insufficient data to determine when or where the Nilson well might peak but the M3 Helium team have been studying an analogous frack by Amoco in 1992 which took around 8 months to peak. It is too early to say whether this case can be used as a reliable guide, but the table below illustrates the well revenue capability between its existing production rate through to where the rate could peak should it continue to grow at the same rate for 8 months.
| Production(Mcf/day) | 50 | 100 | 150 | 200 | 300 |
| Daily revenue ($) | 143 | 285 | 428 | 570 | 855 |
| Monthly revenue ($) | 4,275 | 8,550 | 12,825 | 17,100 | 25,650 |
| Annual revenue ($) | 51,300 | 102,600 | 153,900 | 205,200 | 307,800 |
The above figures are based on a helium sale price of US$350 per Mcf (higher than Rost given that Nilson is tied into Scout Energy’s gathering system) and a NGL (natural gas liquids) sale price of US$0.75 per Mcf.
The significance of Nilson’s performance, aside from the value within this well, is that it provides a reference point and a pathway with which to develop other wells in the region, particularly within the farm in agreement with Scout Energy referred to above.
Nick Tulloch, Chief Executive Officer of Mendell Helium, said: “Since entering into the option to acquire M3 Helium, we have worked hard to develop the company’s asset base and, as shown in recent announcements and today’s update, the results have significantly exceeded our expectations. Alongside the farm in with Scout Energy, which provides an immediate and cost-effective path to scale our business, the exceptional performance of our flagship Rost well could potentially become a significant contributor to M3 Helium’s cashflow in the coming months.
“Meanwhile M3 Helium’s innovative larger frack at the Nilson well has provided ample evidence to support further use of this technique to stimulate increased production in Hugoton wells, something that could prove to be a crucially important factor as M3 Helium develops its farm in programme.
“M3 Helium is fortunate to have several advantages – the Hugoton location puts the company in prime production territory, it has access to infrastructure through Scout’s Energy’s gathering system to facilitate rapid monetisation of production, a fee payment structure geared to drilling activities and a farm in agreement along with the right of first refusal over any other Scout Energy farm outs that provides a platform through which our Company can exponentially scale up its operations.”
The Directors of the Company are responsible for the release of this announcement.
Nick Tulloch will be presenting at the Aquis Showcase on 12 November 2024. Details of the event are available at https://www.eventbrite.co.uk/e/aquis-showcase-tickets-951428316707.
ENDS
Enquiries:
| Mendell Helium plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
nick@mendellhelium.com https://mendellhelium.com/ |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium, formerly Voyager Life plc, announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in nine wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The nineth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “similar” expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.
Mendell Helium #MDH – M3 Helium acquires further producing wells in the Hugoton Field
Mendell Helium is pleased to announce that M3 Helium Corp. (“M3 Helium”) has acquired interests in three further wells on the western side of the Hugoton gas field in Kansas. Two of these wells are in production and the third is believed to be suitable for conversion into a water disposal well.
As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp., a producer of helium which is based in Kansas and holds an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights
- Acquisition of interests in two further producing wells takes M3 Helium’s total number of wells to eight (not including disposal wells)
- No consideration was payable on the acquisition
- M3 helium’s management have identified a path of action to bring the wells to profitability
M3 Helium has acquired an 85 per cent. interest in the Bearman, Demmit and Cockerham wells which are all located on the western side of the Hugoton gas field in Stanton County, Kansas. The Bearman and Demmit wells are currently producing 25 Mcf/day in aggregate with a helium composition of approximately 0.6 per cent. The Cockerham well is not currently in production.
The wells are connected to Scout Energy’s Jayhawk gas processing plant via a pipeline operated on vacuum by Energy Transfer LP, one of the largest and most diversified midstream energy companies in North America.
Taking account of water disposal costs, the three wells break even financially at present and, as a consequence, M3 Helium was able to acquire them for nil consideration. The rationale for the acquisition is that M3 Helium’s management have identified certain steps to take to bring the wells to profitability:
- In common with many older wells in the region, helium produced at the Bearman and Demmit wells is not accounted for by the processor, which in this instance is Scout Energy: only the value of methane and natural gas liquids are paid to the producer.If M3 Helium is able to obtain a price for the helium produced then, noting the higher value of helium relative to the other components, this would be transformational for the economics of the two wells.
- To date, water produced by the Bearman and Demmit wells is hauled by truck to a disposal site.With the (current) low production, this is a disproportionately high expense of operating the wells. If the Cockerham well was converted to a water disposal well, the cost of which is estimated at around US$30,000, then it would be economic to increase the frequency of pumping at the Bearman and Demmit wells. This would produce more water, which would then be efficiently disposed of through the Cockerham well, but it would very probably increase the gas production. M3 Helium estimate that this would be at least an additional 25 Mcf/day.
- Acidising the wells is also expected to increase production of gas although it would also produce additional water.Whilst this is not economic at present, it would be a valuable addition to the wells once a disposal well is in place.
Nick Tulloch, Chief Executive Officer of Mendell Helium, said: “Today’s acquisition is a further example of the progress that M3 Helium is able to make due to its connections in the Kansas region. Whilst these are not going to be significant producing wells, the incremental production they will provide M3 Helium is at minimal cost. There is no obligation to spend any funds on the wells but, once the team evaluate the potential advantages of a disposal well, we will be able to assess the ecomomics of extending their production capabilities.
“Through our proposed investment of M3 Helium, we remain committed to increasing our helium production on a cost-effective and rapid basis.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
| Mendell Helium plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
nick@mendellhelium.com https://mendellhelium.com/ |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium and the Hugoton North Play
Mendell Helium, formerly Voyager Life plc, announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in eight wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Seven of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
Mendell Helium #MDH – M3 Helium signs exclusive farm-in agreement for Hugoton field with Scout Energy
Mendell Helium is pleased to announce that M3 Helium Corp. (“M3 Helium”) has signed an exclusive farm in and fixed price helium agreement with Scout Energy Partners (“Scout Energy”) over 161,280 acres of the Hugoton gas field (“Leases”), one of the largest natural gas fields in North America.As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp., a producer of helium which is based in Kansas and holds an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights:
- Farm in covers 161,280 acres (252 square miles) of the Hugoton gas field
- Minimum target of 25 new wells but estimated by M3 Helium’s management to be a potential 100 – 200 well opportunity
- All production delivered to Scout Energy’s gathering system and the Jayhawk processing facility
- Fixed helium price with an annual price escalator based on the consumer price index from 1 January 2026 through to the end of 2029
- Discounted royalties and operating expenses agreed with Scout Energy
- Gathering and processing tariffs waived by Scout Energy in return for methane from the new wells
- Exclusive agreement with Scout Energy includes a right of first refusal over any other farm outs in Scout Energy’s Kansas acreage
- US$1 million due from M3 Helium when drilling commences or by 31 March 2025 (whichever is the earlier). In the event that M3 does not proceed with the agreement no fee will become payable.
Overview of the Farm In Agreement
With a term ending on 31 March 2027, the farm in agreement covers seven townships in the Hugoton gas field, with each township being 36 square miles (23,040 acres). The townships are in south-west Kansas, within Scout Energy’s gathering system and proximate to the Jayhawk gas processing plant which is estimated to process around 4% of the world’s helium, processing approximately 700,000 cubic feet per day of crude helium. Scout Energy is the second biggest producer of helium in the United States.
Under the terms of the agreement, M3 Helium is entitled to nominate drilling locations of its choice subject only to maintaining a distance of 1,500 feet from any existing well operated by Scout Energy. The M3 Helium management team estimate potential for not less than 100 wells within the allocated area and up to 200 wells. The agreement has a minimum commitment of 25 wells by 31 March 2026. The wells are permitted to access the Chase and Council Grove gas formations, being around 3,000 feet deep. M3 Helium management estimate that a conventional oil & gas lease over land of the type included in the farm in agreement would be in the region of US$50 per acre. This implies an indicative farm acreage value of over US$8 million.
M3 Helium has no obligation to make any payment to Scout Energy until the first well is commenced (which must be by 31 March 2025). At that time, a one-off fee of US$1 million is due. Should M3 Helium decide not to proceed with the farm in agreement, then it has no financial liability to Scout. If the fee is not received by Scout Energy on or before 31 March 2025, the agreement will be terminated with no further action required by M3 Helium or Scout Energy.
Each well drilled will be connected to Scout Energy’s gathering system. Scout Energy will manage the operations of the wells and the parties have agreed a discounted rate, reflecting the nature of their partnership. Likewise, royalty payments on production have been reduced by a third to support M3 Helium’s expansion plans.
M3 Helium is able to drill both vertical and horizontal wells under the farm in agreement.
If M3 Helium completes and connects at least 25 wells on or before 31 March 2026, M3 Helium shall have the right, but not the obligation, to continue to drill wells and earn wellbore assignments pursuant to the agreement until 31 March 2027.
In the event that M3 Helium fails to drill a minimum of 25 wells prior to 31 March 2026, it may extend the drilling period for a further 12 months to 31 March 2027 by making a further payment (by 31 March 2026) of an amount equal to the shortfall from the 25 wells multiplied by US$50,000. There are no other payments due to Scout Energy, aside from operating expenses, for the remainder of the agreement.
Provided that M3 Helium remains in compliance with the terms of the farm in agreement, its right to drill wells over the acreage specified in the agreement is exclusive. More importantly, the agreement provides M3 Helium with a right of first refusal should Scout Energy be approached by any third parties to farm into its Kansas lands which, in aggregate, amount to over 1 million acres.
Overview of the Hugoton gas field
The Hugoton gas field, located primarily in southwestern Kansas, western Oklahoma, and the Texas panhandle, is one of the largest natural gas fields in North America, deriving its name from the town of Hugoton, Kansas. Discovered in 1927, this field which covers around 8,500 square miles has significantly contributed to the natural gas supply in the United States. Over its long history, more than 12,000 wells have been drilled in the Hugoton field.
The field’s cumulative production is substantial, with over 30 trillion cubic feet of natural gas produced since being discovered. Additionally, it has yielded substantial quantities of natural gas liquids and helium. The natural gas in the Hugoton field of Kansas and Oklahoma, plus the Panhandle Field of Texas, contains unusually high concentrations of helium, ranging between 0.3% to 1.9%. Because of the large size of these fields, they contain the largest reserves of helium in the United States.
Natural gas is produced from several different rock layers and many individual fields. Most of the gas is produced from two rock units, the Chase and Council Grove groups, that were deposited during the Permian Period, about 280 million years ago.
M3 Helium’s farm in acreage covers an area where production to date has indicated a helium content of around 0.6%. M3 Helium estimates that the average life of vertical wells in the Hugoton gas field is around 30 years and management models an 8% annual decline. Drilling costs are expected to be under $300,000 per well with the possibility of cost savings if several wells are drilled in succession. Tie and frack costs are expected to amount to less than $200,000 with the exact cost being dependent on the size of frack proposed.
Overview of Scout Energy
Scout Energy is a private energy investment manager focused on the acquisition, operation and improvement of upstream energy assets and associated midstream energy infrastructure throughout the contiguous United States. Scout Energy’s portfolio currently consists of over 60 assets currently producing over 110,000 BOEPD from over 22,000 wellbores across more than 4 million acres in eight states: Kansas, Texas, Oklahoma, New Mexico, Colorado, Utah, North Dakota, and Montana.
Management changes at M3 Helium
Nick Tulloch, CEO of Mendell Helium, has been appointed as Chairman of the board of M3 Helium as the two companies work closely together to execute the farm in agreement and finalise the exercise of the Company’s option to acquire M3 Helium. A new COO has also recently been appointed by M3 Helium to oversee the company’s portfolio of projects.
Nick Tulloch, Chief Executive Officer of Mendell Helium, said: “This agreement with Scout Energy is the culmination of several months of research of suitable opportunities within the Hugoton gas field and discussions with the Scout Energy team.
“M3 Helium now has low cost access to some of the world’s most prospective acreage for helium extraction. Furthermore, its partnership with Scout Energy guarantees an offtake of all of its production at pre-determined price levels and low operating costs. Natural resources exploration is inherently uncertain but M3 Helium’s agreement provides a level of predictability that many companies in this sector may never achieve.
“We said at the time of our proposed acquisition of M3 Helium that we would demonstrate a scalable business plan. The framework set out in this farm-in agreement establishes that plan and does so on very advantageous terms.
“To put the financial terms of this agreement in context, M3 Helium’s management estimates that a conventional oil & gas lease over land of the type included in the farm in agreement could be at least US$50 per acre implying an indicative value of the farm in acreage of over US$8 million. The US$1 million fee M3 Helium will pay on commencement of drilling represents just 12% of that, plus M3 Helium also receives access to established infrastructure and processing facilities as part of the arrangements.
“Global demand for helium has naturally generated investor interest in the sector. Across UK quoted companies alone, there are a number of different strategies. Ours is straightforward. We have the right to drill new wells in a proven helium producing region. We have a low cost model, partnered with the biggest operator in the region. And we have access to nearby infrastructure and processing.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
Enquiries:
| Mendell Helium plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608 |
Overview of M3 Helium
Mendell Helium, formerly Voyager Life plc, announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in six wells in South-Western Kansas of which three (Peyton, Smith and Nilson) are in production. Five of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
M3 Helium has also signed a farm in agreement with Scout Energy Partners over 161,280 acres of the Hugoton gas field giving it the potential to drill between 100 – 200 new wells. All production will be handled by Scout Energy’s gathering network and the Jayhawk gas processing plant.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “similar” expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.
Mendell Helium #MDH – Disposal of plant based health & wellness business
Mendell Helium is pleased to announce the conditional disposal (“Disposal”) of its plant based health & wellness business (“Voyager”) to Orsus Therapeutics plc (“Orsus”), a private label turnkey solutions provider specialising in developing, formulating, marketing & sales of health and wellness products for global brands.
As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp., a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights
- Mendell Helium will own approximately 28% of Orsus with further upside based on the achievement of revenue targets
- The Board will explore arrangements to distribute the Orsus shares on a pro rata basis directly to the Company’s shareholders
- Mendell Helium has no further obligation to contribute to the running costs of the plant based health & wellness business with effect from 1 October 2024
- Disposal will be conditional on shareholder approval at a forthcoming general meeting
Transaction summary
Further to the announcement of 30 September 2024 in which the Company stated that it had entered into heads of terms to dispose of its plant based health & wellness business, Mendell Helium is now pleased to confirm that a share purchase agreement has been signed to dispose of Voyager’s plant based health and wellness business to Orsus. The Disposal is being effected by Orsus acquiring three of the Company’s wholly owned subsidiaries, being VoyagerCann Limited, Amphora Health Limited and Voyager Life Limited, which, combined, own all of its health & wellness operations. The consideration for the Disposal is:
- The issue of 9,000,000 new ordinary shares in Orsus (“Shares”) at a price of 5 pence per share to the Company, representing approximately 28% of the enlarged Orsus group
- The issue of of 6,000,000 new Orsus warrants (“Warrants”) to the Company, representing approximately 16% of the enlarged Orsus group’s existing share capital on a fully diluted basis
The Warrants will convert into Shares subject to Voyager’s business contributing not less than £300,000 of revenues to the enlarged Orsus group and existing customers accounting for not less than £100,000 of such revenues in the first 12 months.
As the Disposal will result in a fundamental change in the Company’s business pursuant to rule 3.7 of the AQSE Growth Market Access rulebook, it is conditional on shareholder approval which will be sought at the time of the publication of the admission document in connection with Mendell Helium’s proposed acquisition of M3 Helium Corp. which is anticipated later in Q4 2024.
Pending shareholder approval, the Company and Orsus have agreed that the effective date of the Disposal is 1 October 2024 meaning that Orsus will assume management control, and full profit & loss responsibility for Voyager from that date and Mendell Helium has no further obligation to contribute to the running costs of the Voyager plant based health & wellness business.
It is Mendell Helium’s intention to transfer the Shares and Warrants to the Company’s shareholders on a pro rata basis. This will allow Mendell Helium to focus on its proposed new business of helium production in Kansas whilst also giving shareholders a direct and continuing stake in Voyager’s operations. Further details will be announced in due course.
About Voyager
Voyager’s plant-based health and wellness operations comprise:
- Manufacturing facility in Perth, Scotland producing both products for own brand and third party customers (VoyagerCann)
- E-commerce and wholesale operations based in Perth, Scotland
- Three brands: Voyager, Ascend Skincare and Amphora
- Three retail stores in Scotland (St Andrews, Dundee and Edinburgh)
Although the Directors concluded earlier this year that the scale of these operations is not large enough in the short term to justify being a standalone public company, there have been considerable successes in the business. On 4 June 2024, Voyager announced that it had been successful in pitching for and winning a substantial new customer for VoyagerCann. The preliminary order for six product lines with an expected order value of over £30,000 has since been increased by plans to manufacture additional products for that customer, which is a leader in its field with retail stores across the UK and a strong online presence.
Since then, the Company has also received a series of orders worth over £38,000 for further products for one of its existing customers. That customer has since advised that certain of its products are expected to be stocked in well-known high street stores and, consequently, VoyagerCann’s order book is now stronger than at any time previously.
Within the Company’s own brand, Voyager, the most prominent customer is Pets at Home with four products available on Pets at Home’s website since November 2023. Furthermore, its Amazon profile has recently improved with a greater range of products now available for sale through its Prime channel.
In conjunction with Orsus, the Company is continuing to reinvigorate its e-commerce strategy with a plan for Voyager’s primary website to be re-written in Shopify and accompanied by a revised SEO, social media and digital marketing strategy. Shopify would provide more functionality and can also be integrated into the Company’s stores and used at external events (such as trade fairs).
With the low-cost acquisition of Amphora Health Limited earlier in the year, Voyager now has 23 products validated on the FSA’s novel foods list, which the Board considers will be a key part of its e-commerce strategy. Just as significantly, the acquisition has enabled entry into the potentially lucrative non-disposable vape market.
In the financial year ended 31 March 2024, the Company reported revenue of £304,000 with a gross margin of over 41%. Total assets were £929,000 and net assets £140,000. These figures are all substantially attributable to Voyager.
About Orsus
Orsus Therapeutics was established in 2021 as a special purpose acquisition vehicle to become an end-to-end provider of health and wellness solutions and products via a buy and build strategy. Through the acquisiton of Voyager, it is set to become a leading private label turnkey solutions provider specialising in developing, formulating, marketing & sales of health and wellness products for global brands. Using Voyager’s facilities as its base in Perth, Scotland, Orsus has ambitious plans to build a leading health and wellness solutions business, offering a full creation and production vendor service to brands globally.
Nick Tulloch, Chief Executive Officer of Mendell Helium, said: “We are delighted to announce the conditional disposal of our plant based health & wellness business with Orsus. Voyager is four years old and, in that time, has established three brands within the UK’s CBD market and, most importantly through VoyagerCann, a reputation for high quality manufacture of white label and third party products. We have several high profile and substantial customers which we believe will grow their product range over the coming months and years.
“A key attraction of the combination with Orsus is that we are working with people we know and who have particular expertise in the health & wellness market. Orsus has already put in place plans to invest in and expand the business and, through the terms of the Disposal, our shareholders stand to benefit from the enlarged operations. In time we aim to transfer the shares and warrants we receive in Orsus to our shareholders thereby giving them interests in both our potential new helium operations as well as our enlarged health & wellness business.”
Dr Adi Zuloff-Shani, Chair of Orsus Therapeutics, said: “The acquisition of Mendell Helium’s plant-based health and wellness business not only enhances Orsus’ portfolio but also positions us to establish a world-class facility in Perth, Scotland as our base to serve brands globally. By merging the Voyager team with ours , we will leverage our joint expertise and comprehensive understanding of market trends to provide turnkey solutions for global health and wellness brands across various categories. Through meticulous design, expert formulation, rapid manufacturing and stringent quality control, our commitment to excellence and innovation remains steadfast as well as todelivering exceptional products for our clients.”
Aditya (“Harry”) Chathli, a founder Director of Orsus, is Non-Executive Chairman of Chill Brands Group PLC, a company which Nick Tulloch is a Non-Executive Director.
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
| Mendell Helium plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608 |
Overview of M3 Helium and the Hugoton North Play
Mendell Helium, formerly Voyager Life plc, announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in six wells in South-Western Kansas of which three (Peyton, Smith and Nilson) are in production. Five of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “similar” expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.
Mendell Helium plc #MDH (Formerly Voyager Life plc #VOY) – Update on proposed acquisition of M3 Helium. Change of name to Mendell Helium
Mendell Helium is pleased to provide the following update on its option (the “Option”) to acquire M3 Helium Corp. (“M3 Helium”).
As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp., a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights
- Option exercise date extended to 31 January 2025
- The Company’s name has changed to Mendell Helium plc
- Three M3 Helium wells in production and revenue generating
- A further well expected to begin production shortly
- Second, larger frack carried out at the Nilson well through project finance
- All M3 Helium wells are proximate to a gathering system or have an on-site purification plant
- Approximately US$487,000 drawn down by M3 Helium from the Company’s loan facility
Overview of M3 Helium operations and future strategy
M3 Helium has made significant progress since the Company entered into an agreement to acquire it. Two further wells, Smith and Nilson, have been tied into the local gathering system and brought into production. A third well, Rost, is expected to commence production shortly. As announced on 26 September 2024, M3 Helium initiated a second, much larger frack on the Nilson well which was designed to stimulate further production.
During the frack, a total of 210,000 gallons of gelled water was pumped into the well (higher than the forecast 170,000 gallons) with pressure reaching 1,500 psi (pounds per square inch) at the peak of the operations (the first frack on that well averaged 550 psi). Seven frack pumps were able to deliver up to 80 barrels per minute of a gelled water and sand mixture. This equated to 12 tonnes of mass per minute. The team will now be assessing the well’s performance over the coming weeks.
As announced on 27 June 2024, these developments have been, with the exception of the project finance for the Nilson frack, funded through the Company’s loan facility to M3 Helium (the “Loan Facility”) that was put in place at the same time as the option. To date, US$487,362 has been drawn down by M3 Helium under the Loan Facility.
The next phase of M3 Helium’s development is to identify further locations for new wells. M3 Helium operates in two locations: the Hugoton gas field, one of the largest natural gas fields in North America, and Fort Dodge. Management believe that expansion opportunities are more limited in Fort Dodge but helium concentrations (5.1% at the Rost well) are likely to be higher. Conversely there are extensive options in the Hugoton and the Company and M3 Helium have developed a good working relationship with Scout Energy Partners, the largest operator in the region and owner of the Jayhwak gas processing plant, a relationship which the M3 Helium board considers is likely to be key to expansion.
Change of name and transaction update
With the extent of the operations undertaken in Kansas since the Company took the Option, there has been inevitable time pressure on the management teams’ time. Alongside these operations, the Company has also published its own audited accounts and, as announced on 30 September 2024, signed heads of terms to dispose of the Company’s existing health & wellness operations to another healthcare business (the “Disposal”).
As a consequence of these activities, the Company and M3 Helium have agreed to extend the date by which the Option can be exercised to 31 January 2025. Terms under the Loan Facility have been correspondingly extended. As previously announced, the exercise of the Option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document (the “Admission Document“). The Company’s board clarifies that the new extension date is not a target for exercising the Option. Progress is being made on preparing and auditing M3 Helium’s financials and obtaining a competent person’s report. The Admission Document will also address the Disposal, subject to contracts being concluded with the proposed buyer.
There are no other changes to the Option which will be exercised through the issue of 57,611,552 new ordinary shares in Voyager to M3 Helium’s shareholders. At the current share price, this would value the enlarged group at approximately £3 million.
Reflecting its new proposed business focus, the Company has changed its name to Mendell Helium plc and, once the change of name takes effect, will trade on AQSE Growth Market with the ticker “MDH”.
The Company’s website address (including its investor relations content) will remain www.voyagerlife.uk until it is updated to www.mendellhelium.com.
Paul Mendell, founder of M3 Helium, has been instrumental in that company’s development and the decision to reflect that in the Company’s new name is a fitting endorsement of his ongoing efforts.
Nick Tulloch, Chief Executive Officer of Mendell Helium, said: “As our recent announcements have shown, we have had a very busy summer working with the team at M3 Helium to develop that business. The funds we have loaned to M3 Helium have been put to good use with, in particular, three wells in production, a 5.1% helium concentration tested at the Rost well and a significant frack carried out at the Nilson well. As a result, exercising the Option will give us larger and more advanced operations than we previously envisaged in June 2024.
“It has always been our view that a particular attraction of M3 Helium is its proximity to local infrastructure. Production is an important metric but the ability to deliver helium to market cost-effectively and without restrictions is what can define our business. The speed at which we and M3 Helium have been able to develop their operations is testament to that and the involvement of local investors in the recent Nilson frack, in our view, is a powerful endorsement of our strategy. Natural resources activities are extensive across Kansas and neighbouring states, so investors choosing to back M3 Helium recognises the progress we are making.
“With such an intensive period of expansion, coupled with our own audit and potential disposal of our existing operations, I am sure investors will understand why we have decided to extend the option with M3 Helium. I can assure investors we are working hard to complete the regulatory process but our focus has been on growing the business that may shortly be part of our company. With the progress that is being made, the time was right to change our name to reflect our future focus and I will be pleased to report as Mendell Helium from now on.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
| Mendell Helium plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
| Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green |
Tel: +44 (0) 7976 431608 |
Overview of M3 Helium and the Hugoton North Play
Mendell Helium, formerly Voyager Life plc, announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in six wells in South-Western Kansas of which three (Peyton, Smith and Nilson) are in production. Five of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorptionproduction plant which could be used to purify the helium on site.
Voyager Life #VOY – Final results for the period ended 31 March 2024, Proposed Change of Name and Notice of AGM
Voyager is pleased to provide the Company’s audited results for the period ended 31 March 2024.
As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp. (“M3 Helium”), a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
Highlights in the Chairman’s statement include:
· Preparation of the admission document for the proposed acquisition of M3 Helium Corp. is underway
· Proposed change of name to Mendell Helium plc
· Heads of terms signed to dispose of the Company’s existing operations to another healthcare business
The Company’s annual report and accounts for the year ended 31 March 2024 and notice of annual general meeting (“AGM”) were posted on 27 September 2024 to Voyager’s shareholders. The AGM will be held at 10.00 am on Wednesday 6 November 2024, at the Company’s offices at Arran House, Arran Road, Perth, Perthshire PH1 3DZ.
Copies of the annual report and accounts and notice of AGM are available on the Company’s website: https://www.voyagerlife.uk
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
|
Voyager Life plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
|
Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
|
SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
|
Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608 |
Forward Looking Statements
These forward-looking statements are not historical facts but rather are based on the Company’s current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as ‘anticipates,’ ‘expects,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘seeks,’ ‘estimates,’ and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company’s control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
CHAIRMAN’S STATEMENT
It is a pleasure to present Voyager’s annual report and accounts for our financial year ended 31 March 2024.
My report this year begins post the year end as our most significant development took place after the financial year had concluded. On 27 June 2024, we announced that we had taken an option to acquire M3 Helium Corp. (“M3 Helium), a Kansas based producer of helium. Since taking that option, we have seen the ongoing development of that business and today M3 Helium has three wells in production and it expects a fourth to be in production before the end of October.
Investors may be aware of the growing global interest in helium, an element that has no natural substitute but a variety of everyday uses. Many people will think first of party balloons but medical, defence and space industries are the leading users of helium. There are many London listed natural resource companies – however, M3 Helium distinguishes itself as being a producer. And, by this, I mean that M3 Helium will be capable of finding, extracting, transporting and selling helium.
M3 Helium’s operations in Kansas comprise, in part, the Hugoton gas field, one of the oldest gas producing locations in the US – spanning parts of Kansas, Oklahoma and Texas. The Hugoton is also perhaps one of the best known producers of helium.
A significant competitive advantage for M3 Helium is its partnership with Scout Energy Partners (“Scout”), the largest operator in the Hugoton field in Kansas. M3 Helium’s wells are within reach of Scout’s gathering system and, more importantly, its Jayhawk gas processing plant, a facility which is estimated by Scout to produce around 5 per cent. of the world’s helium.
With M3 Helium’s location in such a prospective location and with its ready access to infrastructure, we believe we have an option to acquire a low-cost, fast growing business in one of the world’s most exciting natural resources regions.
Naturally it was a surprise to many when we announced our pivot away from plant-based health & wellness and into helium. It was not a decision that we took lightly.
We have said for some time now that the wider CBD and cannabis sectors were ready for consolidation. As is so often the case in newer, fast growing industries, a large number of companies were quickly established to chase the same goal. Forecasts predicted a rapid take up of cannabinoid-based products and investment understandably followed.
But as is also the case in newer sectors, forecasts in many ways were overly ambitious, the industry developed more slowly than predicted with slower take up amongst consumers than forecast and regulators understandably were cautious. Share prices came under pressure and investors became disillusioned.
At Voyager, we have always taken a cautious view. As far back as 2021 when we were just establishing the company, the board of directors predicted that the good times in the industry would not last forever. We implemented a low cost operating model and ensured we had a strong balance sheet. Our business developed well, as described more fully in the CEO’s statement, but our belief was that, to attract long term investment and to make use of our stock market listing, we needed to expand the business through acquisition.
Since the Company listed on AQSE, acquisition opportunities presented themselves. I wrote this time last year about our proposed acquisition of a Polish manufacturing and extraction facility, with a view to extend our business into Europe and complete our vertical integration. Ultimately our plans were defeated by the lengthy and unpredictable process of securing Polish regulatory approval.
More recently, and at the start of 2024, we launched a further ambitious initiative to acquire Northern Leaf plc, a cultivator of medical cannabis in Jersey, Channel Islands. The transaction would have created one of Europe’s few medical and over-the-counter cannabis operations, delivering scale and product diversity. The attractions were clear – Northern Leaf, which had spent around £30 million developing its facility was available to us for less than a tenth of that and investors were prepared to support the initiative. Disappointingly, the financial constraints of Northern Leaf could not outlast the fundraising process and this potential acquisition also failed.
As a board we explored other targets too. Although we were not successful, it is a testament to our team and our business model that, not only were we able to source a series of prospective merger partners but, in almost every case, the partner was a far larger business but available to us at a considerable discount to the investment they had made in the business themselves.
Ultimately, however, we could not wait indefinitely for the right opportunity and, as I indicated above, investor appetite for cannabis-based projects had waned. It is perhaps ironic that, as Voyager’s plant-based health & wellness business was winning new and bigger customers, we took the difficult decision to go down a different path.
Over the previous twelve months we had secured several substantial customers. Pets at Home is perhaps our best known retail outlet but I can also report that Voyager-made products are available to buy in some of the UK’s well known supermarkets, health stores and online retailers.
But building from this platform would require capital and the board, despite our successes and our proven ability to source acquisitions, could not be confident that investors would want to support us in these endeavours. Conversely, helium was a highly topical investment theme.
Some years ago, Nick Tulloch and I worked at Highlands Natural Resources plc (“Highlands”). Alongside us was Paul Mendell, former chairman of that company and the developer of some of its core projects. The three of us have stayed in touch and, before Voyager was founded, we looked at a different helium play in Kansas in the summer of 2020. The risk-reward profile of that opportunity was not favourable. The three of us went on to found Voyager, with Paul leaving ahead of the IPO to pursue other opportunities in the US – and ultimately to bring together a portfolio of assets under M3 Helium.
The combination of Voyager and M3 Helium, whilst unusual at first glance, in fact is reuniting business partners. It also marks the second occasion that the three of us have been involved in a pivot between natural resources and cannabis – Highlands performed its own transformation in 2019 and that company is now known as Chill Brands Group plc.
We stated in our shareholder circular on 1 July 2024, that we would put in place plans to dispose of our plant-based health and wellness operations as our focus is now on M3 Helium’s prospects in Kansas and I am pleased to report that we have signed non-binding heads of terms to dispose of the Company’s existing operations to another healthcare business. Completion will be subject to legally binding contracts and shareholder approval but, if our plans proceed as I expect them to, we will have successfully separated our helium and health & wellness operations whilst preserving our shareholders’ interests in the success of both. There is still work to be done but we hope to update shareholders shortly.
We also hope to conclude our acquisition of M3 Helium in Q4 2024. Under the Aquis Rules, the transaction is classified as a reverse takeover and, consequently, is subject to the publication of an admission document. Although our immediate focus on taking the option over M3 Helium was to accelerate the development of that business, I am pleased to report that preparation of the admission document is well underway.
Ahead of that, the time has come to give Voyager a new name and I am pleased to announce our proposed change of name to Mendell Helium plc, in recognition of the outstanding work that Paul Mendell has done in putting that business together.
As always, the Voyager board welcomes shareholder interaction and feedback and we hope to see as many of our investors as possible at our AGM on 6 November 2024. Notice for the meeting is set out at the end of this annual report.
Eric Boyle
Non-Executive Chairman
27 September 2024
CEO’S REVIEW
As our Chairman has written above, we have undertaken a change to our business following the end of the financial year. Although, by its nature, much of this annual report is backward looking on our operations during the year, our company is now very different to how we began the year.
When we report next year, we will report on our operations as a helium producer in Kansas and, based on what has been achieved in the short time since taking the option to acquire M3 Helium, I am confident that we have an exciting period ahead of us.
In the meantime, I am pleased to provide this summary of our achievements in the year to 31 March 2024. Just as we reported last year, the Company has four sources of income:
1. White label and private label skincare manufacturing through our VoyagerCann division
2. Sales through third party stores
3. Sales through our own stores in St Andrews, Edinburgh and Dundee
4. Online sales – comprising our own website along with third party sites and online marketplaces
I predicted last year that it would be items 1 and 2 in the above list, that would represent the biggest growth areas and that has indeed been the case. In November 2023, after an extensive courtship, we announced that Voyager’s pet products would be sold online by Pets at Home. This relationship has continued to develop with Pets at Home re-ordering regularly and Voyager making up the largest contributor of hemp products on its website.
£,000
Shop revenue 142
Trade sales 125
Website and other sales 37
As a rule, we do not disclose names of customers that we contract manufacture for but we have reported some of our successes. Since September 2023, we have been manufacturing products for arguably one of the UK’s highest profile CBD brands. As with Pets at Home, this partnership has continued to develop with further products made by us added to their range. Even at the time of writing, their biggest order to date is being processed in our manufacturing facility.
We were also pleased to announce in June 2024 that we had been selected to manufacture a new range for a very well known UK retailer, a leader in its particular field. Their indicative order was, at the time, our biggest to date although has since been surpassed by our CBD brand partner.
VoyagerCann
Following on from the above news, it is no surprise that VoyagerCann, established in February 2022, has become our best known division.
We offer two broad categories of service:
· White label which we define as manufacturing and supplying our existing formulations
· Private label which is either the adjustment of an existing formulation, perhaps for scent or CBD strength, or new product development
VoyagerCann offers a “shelf ready” solution providing, at the option of customers, a fully packaged, labelled and batch coded product supplied with all necessary accreditations for immediate sale. Many of our customers take advantage of this and it is not unusual for us to deliver orders directly to retailers, rather than to our customers themselves. Equally, we can provide supply products in bulk to our customers or a hybrid arrangement where we bottle products but customers carry out the final labelling and packaging themselves.
As our Chairman wrote above, the CBD industry is still characterised by a large number of brands, many of which are competing for the same end customer. Conversely, the number of specialist manufacturers of CBD products is considerably less and the board of directors felt that our company’s fastest route to success was to become the manufacturer of choice for the industry.
Our values of integrity, quality and transparency coupled with fair pricing placed us well within the industry.
Own stores
In the latter part of the pandemic, we opened three retail stores aiming to provide accurate and honest information on our products and CBD generally. Initially supported by grants and reduced business rates, this strategy, which was aimed at being part of the community to make CBD mainstream, had some initial success – even now it is the largest single revenue contributor to Voyager. However, rising costs, particularly employment and utilities, alongside flatter revenues have made this a difficult area in which to operate.
In line with our culture, we ran a tight operation but, even before we secured the option to acquire M3 Helium, it was apparent to the board that our resources could be more efficiently applied to our manufacturing, wholesale and e-commerce divisions.
As an extension of that, and alongside our proposed acquisition of M3 Helium, we have examined alternative solutions for our three shops and have been working with our landlords in respect of a possible sublet or assignment. This will reduce the operating costs for the business going forward and, as our Chairman has explained, following disposal we expect to give our shareholders the opportunity to remain invested in the business that we have built. We are fortunate that our shops are located in popular retail locations and we have already received interest from new prospective tenants.
Online
Since Voyager commenced operations, we have used WordPress to operate our websites but, during the course of this year, our team has been working on a plan to develop a new e-commerce website on the Shopify platform which we expect will give greater flexibility and capability. Coupled with this plan are a series of strategic initiatives to upgrade and extend our digital marketing reach. We have been working with IT consultants to deliver this and I am pleased that our new partners, following the combination of our two businesses, will continue this work.
It is well understood that online sales are capable of being higher margin than our other business lines and therefore replacing the investment in our bricks and mortar operations with an enhanced e-commerce strategy represents a natural development of our business at this stage.
Acquisition of Amphora Health Limited
On 30 January 2024, we announced that we had entered into an agreement to acquire Amphora Health Ltd (“Amphora”), owner of the Amphora and Infused Amphora brands which comprise a range of CBD oils, vapour products and accessories. The acquisition duly completed in March 2024.
The consideration payable was the issue of 416,666 new ordinary shares in Voyager. In addition, a further 416,666 new ordinary shares may be issued in the event that sales of Amphora or Infused Amphora branded products exceed £100,000 over the 24 month period from completion.
Infused Amphora is a British CBD wellness brand founded in 2020. The entire collection of its premium products are all natural, THC free and designed to help with a variety of everyday conditions. Most importantly, and a primary reason for our acquisition, is that the brand has 23 ingestible CBD products validated on the FSA’s novel foods list, a potentially highly valuable asset in the CBD industry.
Also importantly, given potential changes in UK legislation, Amphora vapour products are not disposable but are currently sold in cartridges for use with a rechargeable battery and the formula can also be sold as an e-liquid for customers to refill their preferred vapour products themselves.
Amphora had inventories of £17,000 at the time of our acquisition and also owns several online domains, as well as registered trademarks in the UK, European Union, Republic of Korea and China. The Amphora website will be combined with Voyager’s new website but the products on the novel foods list, coupled with the trademarks, provides considerable scope to monetise that brand.
The operations of Amphora were moved to Voyager’s existing premises and therefore the acquisition did not entail any increase in overheads. No members of the Amphora team were employed by Voyager and none of the premises or storage facilities occupied by Amphora were included in the acquisition. On this basis, we have treated the transaction as an asset acquisition rather than a business acquisition.
Operations
Voyager employs 24 people of which 10 are based in our head office in Perth and the remainder work in our stores. As in previous years, we were the beneficiary of government employment grants but, as alluded to above, these were less than before at £2,400.
Aside from wage inflation and utility charges, costs were for the most part steady. Certain ingredient pricing increased as a result of conflicts around the world, particularly the Ukraine, but we were generally able to offset this through bulk purchases or more competitive sourcing of other products. VoyagerCann is also able in most instances to pass higher raw material costs onto our customers.
Outlook
As our Chairman has said, we have signed heads of terms to dispose of our health & wellness operations to another healthcare business. We are now working on concluding contracts and thereafter we will publish a circular convening a general meeting for shareholder approval of the transaction. As long term investors will know, we have worked hard to develop Voyager as a well recognised CBD and plant-based health & wellness business and therefore, as we move to become a helium producing business, it was important to us to find a means of disposing of these operations in a manner than enabled existing shareholders to retain the benefit of any future upside. We expect to announce further details shortly.
We have had a busy summer since announcing our option to acquire M3 Helium. That company now has three producing wells and, as Rost comes online shortly, that will soon become four. Together with M3 Helium, we have developed good relations with counterparties and other participants in the Kansas helium industry and we expect that to place our new business in good stead as we continue that expansion.
This coming year is about the operations of M3 Helium in Kansas and I look forward to reporting as Mendell Helium plc in the future.
Nick Tulloch
Chief Executive Officer
27 September 2024
Link here for the full financial statements
Alan Green covers Clontarf Energy #CLON, Voyager Life (M3 Helium) #VOY & Poolbeg Pharma #POLB on this week’s Stockbox Research Talks
Alan Green covers Clontarf Energy #CLON, Voyager Life (M3 Helium) #VOY & Poolbeg Pharma #POLB on this week’s Stockbox Research Talks
Voyager Life #VOY – M3 Helium plan second frack at Nilson well, Hugoton
Voyager is pleased to announce that a second, significantly larger frack, is planned on the Nilson well owned by M3 Helium Corp. (“M3 Helium”) following a successful project finance of US$170,000 by M3 Helium to cover the operation’s costs.
Highlights
- Nilson production, containing approximately 0.6% helium, has been rising with associated water volumes decreasing
- This evidences that gelled water fracks can be successfully performed in the mature Hugoton field
- Fully funded programme to carry out more substantial frack to stimulate greater production
- Local investors and one of the contractors have committed US$170,000 to cover costs of frack for a 25% economic interest in the well
Project overview
The Nilson well was originally fracture stimulated (fracked) with gelled water and sand to test a tight reservoir along the eastern edge of the Hugoton field which M3 Helium’s management considered to be shale-like. The well was stimulated with a single stage, relatively small frack; the total amount of gelled water used in the fracture was only 37,500 gallons, and the sand volume was only 30,000 pounds. By comparison, stimulated shale wells in the US are typically 5-10 times those volumes, per stage, with many stages across a horizontally drilled lateral.
As M3 Helium’s management hoped for, the Nilson well exhibited shale-like response behavior following the first frack including a sharp increase in gas production, followed by a corresponding sharp decline over the following days. However, unlike shale, the Nilson well has subsequently increased in production, steadily over time, while associated water volumes have steadily decreased. As of 22 September 2024, the Nilson well was producing 34,000 cubic feet per day (34 Mcfd) containing approximately 0.6% helium, along with approximately 22 barrels of water.
This highly encouraging behavior from the well, coupled with proof that gelled water fracks can be successfully performed in this field, has supported a follow up proposal of a more substantial fracture stimulation to further enhance the well’s production, scheduled to commence shortly. The planned fracture stimulation is for at least 170,000 gallons of gelled water along with 150,000 pounds of sand, being approximately 5 times the initial pilot stimulation. As far as M3 Helium’s management are aware, this will be the Hugoton field’s first large water-based frack stimulation in several decades. If successful, it could open up a significantly enhanced operation for M3 Helium.
Funding for the programme
The frack operation is anticipated to cost in the region of US$170,000. Given the unexpected, but very pleasing, behaviour from the Nilson well, an operation of this magnitude was not in M3 Helium’s or Voyager’s original plan. Nevertheless, should the operation succeed then the implications for the two companies’ future operations in the Hugoton, being the largest conventional gas field in North America, could be significant.
The significance of this has attracted interest from local investors and M3 Helium has been able to raise project finance which has itself enabled operations to commence this week.
Four investors have committed an aggregate of US$150,000 of cash and one of the sub-contactors on the programme has committed US$20,000 (together, the “Investors”). Their returns will be based on their pro rata share of the future performance of the Nilson well. To date, M3 Helium has invested a total of US$500,000 on the Nilson well, including drilling, the first frack, tie in to the Scout Partners’ gathering system and water disposal. In return for their commitments, the Investors will earn a share of approximately 25% of the well’s future production.
The Investors will not receive any shares in Voyager or M3 Helium and, consequently, there is no dilution to existing shareholders or debt burden for the Company.
Nick Tulloch, Chief Executive Officer of Voyager, said: “Conventional oil & gas theory is that well production declines over time. The fact that Nilson has been steadily rising since coming on production last month is remarkable.
“Nilson is located to the east of the core part of the Hugoton field, known as the transition zone. Higher water content has deterred extensive drilling in the past and M3 Helium’s first, cautious frack recognised the risks of being compromised by water. However, what is apparent is that the frack has been successful and the water has declined over time since the well went into production.
“This second larger frack, innovatively financed, gives the company the ability to test a hypothesis which, if successful, would open the route to more extensive drilling on a part of the Hugoton field that, to date, has been largely overlooked. A successful result could be highly significant.
“We have been very encouraged by the opportunities for M3 Helium since signing the option in June 2024. This new programme at Nilson gives Voyager and M3 Helium an interesting look at what could open up to a new, and much larger, strategic initiative.”
As announced on 27 June 2024, the Company has an option to acquire M3 Helium, a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
| Voyager Life plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608 |
Overview of M3 Helium and the Hugoton North Play
Voyager announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Voyager to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in six wells in South-Western Kansas of which three (Peyton, Smith and Nilson) are in production. Five of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “similar” expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.
Voyager Life #VOY – Pre-production underway at M3 Helium flagship Rost well, Fort Dodge Prospect
Voyager is pleased to announce that preparations to bring the Rost 1-26 well owned by M3 Helium Corp. (“M3 Helium”) into production are now well advanced. Sales of helium from that well are expected to commence by end of September 2024.
The Rost 1-26 well, located in M3 Helium’s Fort Dodge prospect, has previously been tested by Shamrock Gas Analysis, Inc. and was found to contain a gas composition of 5.1% helium in July 2024. Thurmond-McGlothlin, LLC, an independent professional firm, also tested a well pressure at 302.7 psi in July 2024, at the same time as taking the samples. These tests follow on from a flow rate that was measured at 47,100 cubic feet per day (47.1 Mcfd), with this result being achieved even though brine levels were 1,058 feet over the perforations.
M3 Helium will commence de-watering the well shortly in the expectation that it could further increase the flow rate. Water tanks have been delivered to site in preparation for that exercise.
M3 Helium has recently installed a pump to the site and delivered its Pressure-Swing Adsorption (PSA) modular processing unit. Power is expected to be connected to site during the course of this week whereupon commissioning of the PSA will begin, with an estimated time of 10 days to complete the programme. Management expects that produced helium could be concentrated to around 20 – 50% onsite using the PSA, thereby maximising efficiencies by ensuring the lowest possible transport costs to a local processing plant.
The Fort Dodge area is outside of the proximity of gathering systems and so M3 Helium will install a compressor at the well to load the concentrated helium mixture onto tube trailers for delivery by road to the processing plant. Management are currently in discussions with two potential off-take third-parties and a decision will be made shortly.
Nick Tulloch, Chief Executive Officer of Voyager, said: “The elevated helium concentrations coupled with the attendant high pressure has quite rightly pushed the Rost well into pole position as M3 Helium’s flagship project. M3 management are optimistic that, when the well comes on production, it will be a significant contributor to its operations.
“M3 Helium’s focus is on production and sales, and consequently preparations have centred around efficient delivery of produced helium to market. The PSA and onsite compressor will enable M3 Helium to achieve this objective by cost-effectively transporting a concentrated gas mix to nearby processing facilities and, with the forecast production numbers, I am pleased to report we have several options for off-take.”
As announced on 27 June 2024, the Company has an option to acquire M3 Helium, a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
ENDS
Enquiries:
| Voyager Life plc
Nick Tulloch, CEO
|
Tel: +44 (0) 1738 317 693
|
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti/Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608 |
Overview of M3 Helium and the Hugoton North Play
Voyager announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Voyager to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in six wells in South-Western Kansas of which three are in production. Five of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” which include all statements other than statements of historical facts, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “similar” expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.