Following the company’s highly-anticipated debut on London’s AIM market, Helium development company Helix Exploration has made an excellent start to life as a listed company.
Helix Exploration’s listing was oversubscribed threefold, with the helium exploration company raising £7.5m instead of the target of £3.5 to £5m.
The company’s shares were listed at a price of 10p each, with early indications from Tuesday’s market showing share trading beginning at 12.25p.
Moreover, brokers collected an order book exceeding £22m, outstripping supply significantly.
The performance of Helix Exploration on the AIM stock exchange highlights the exciting potential and global significance of the helium industry.
Growing global helium demand
As per Helium One, the worldwide demand stands at approximately 6 billion cubic feet (Bcf) annually, with China importing 1 Bcf yearly.
However, projections indicate that the annual demand is set to surge from 6.0 Bcf to 8.5 Bcf by the year 2030.
The United States stands as one of the leading providers of helium globally. Helium holds pivotal significance in various sectors, notably in medical equipment such as MRI machines, as well as in high-tech manufacturing, including aerospace and defence apparatus.
Helix Exploration’s helium projects are set to reinforce global supply chains and elevate the US in the worldwide helium landscape.
Helix Exploration’s helium resources
The company announced the discovery of multiple confirmed helium reserves spanning three locations within the Ingomar Dome area of Montana, USA, with estimated total volumes ranging from 856 million to 2.3 billion cubic feet.
Ingomar is situated within the renowned ‘Montana Helium Fairway,’ a significant stretch of land stretching from Wyoming, USA, to Saskatchewan, Canada, known for its substantial helium deposits.
Proceeds from the fundraising initiative will be allocated towards financing a scoping study and appraisal drilling activities at the Ingomar project.
The company plans to pursue an ambitious development schedule, with appraisal drilling scheduled for the third quarter of 2024 and initial helium production targeted for the fourth quarter of 2025.
