Successful Testing of Disposal Well at Rost

Mendell Helium PLC

19 May 2025

 

Mendell Helium plc

("Mendell Helium" or the "Company")

Successful Testing of Disposal Well at Rost

Mendell Helium is pleased to announce, further to the announcement on 7 May 2025, the successful completion of operations to re-enter M3 Helium Corporation's ("M3 Helium") Brobee salt water disposal well ("Brobee SWD").  The Rost 1-26 well ("Rost") recompletion project remains on schedule and within M3 Helium's budget.

As announced on 27 June 2024, the Company has an option (the "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 a re-admission.

The Brobee SWD was successfully tested as being able to accommodate over 4,500 barrels of water per day at 640 psi.  This is anticipated to be in excess of the capacity required for forthcoming production plans at Rost as well as, in the future, potentially accommodating water production from offset wells to Rost.  M3 Helium will now formally apply to the State of Kansas for a permit to dispose of water through Brobee SWD.

Work on the wider Rost recompletion project continues to proceed as planned.  An Electric Submersible Pump (ESP) has been ordered from Summit, a division of Halliburton, and delivery is expected this week. Injection tubing for the Brobee SWD is already on site and, with pressure testing now complete, the rig has now moved back to Rost to replace the production tubing in that well.

Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: "Operations to bring the Rost well into production are proceeding to plan.  The amount of water disposal achieved at the upper zones of the Brobee SWD exceeded our expectations and, as a result, it will no longer be necessary to test the lower zones representing a considerable saving in time and money.  The team on site are doing an excellent job and, with the arrival of the ESP at Rost expected this week, we remain on track and ready to begin the next phase of works."

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: [phone] [e-mail] https://mendellhelium.com/
Cairn Financial Advisers LLP (AQSE Corporate Adviser) Ludovico Lazzaretti / Liam Murray	Tel:  [phone]
SI Capital Limited (Broker) Nick Emerson	Tel:  [phone]
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney	Tel:  [phone]/51
Fortified Securities Guy Wheatley	Tel: [phone]
Brand Communications (Public & Investor Relations) Alan Green	Tel: [phone]

Overview of M3 Helium

Mendell Helium 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 ten 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 ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas.  It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day.  M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium.  The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.

The tenth well, Brobee, is a disposal well that has been tested at over 4,500 barrels of water per day at 640 psi.

 

END