Mendell Helium plc
("Mendell Helium" or the "Company")
Approval of Disposal Well at Rost
Mendell Helium is pleased to announce the approval by the State of Kansas of M3 Helium Corporation's ("M3 Helium") Brobee salt water disposal well ("Brobee SWD"). This is the final regulatory step to bring M3 Helium's Rost 1-26 well ("Rost") into production.
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 ten 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.
As announced on 19 May 2025, the Brobee SWD was successfully tested as being able to accommodate over 4,500 barrels of water per day at 640 psi. M3 Helium has now received a permit from the State of Kansas to operate Brobee SWD as a disposal well with an authorised injection rate of 5,000 barrels of water per day at 1,200 psi.
This authorisation is anticipated to be in excess of the capacity required for production at Rost and therefore means that Brobee SWD, in the future, could potentially accommodate water production from offset wells to Rost.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: "Although we were confident of obtaining approval, receipt of the permit for Brobee SWD nevertheless represents a significant milestone for M3 Helium. The success of Rost will always be contingent on water disposal and M3 Helium can now be satisifed that its proposed solution is both tested and permitted. Final preparations to commence production at Rost are now underway including the connection of Rost to Brobee SWD, along with the installation of water tanks and a pump.
The development of Rost and the nearby area is an important part of M3 Helium's strategy and so I am pleased to report it is proceeding to plan. As I have said before, the amount of water disposal achieved at the Brobee SWD exceeded M3 Helium's expectations and, as it develops offset wells in the Fort Dodge region, it has potential excess capacity that could be applied to save both time and costs."
ENDS
Engage with the Mendell Helium management team directly by asking questions, watching video summaries and seeing what other shareholders have to say. Navigate to our Interactive Investor website here: https://mendellhelium.com/s/a6a55a
The directors are responsible for the release of this announcement.
Enquiries:
| Investor questions on this announcement We encourage all investors to share questions on this announcement via our investor website
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| Mendell Helium plc Nick Tulloch, CEO
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Via our website investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser) Ludovico Lazzaretti / Liam Murray
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Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker) Nick Emerson |
Tel: +44 (0) 1483 413500 |
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Stanford Capital Partners Ltd (Broker) Patrick Claridge/ Bob Pountney
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Tel: +44 (0) 203 3650 3650/51
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| Fortified Securities Guy Wheatley
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Tel: +44 (0) 203 4117773
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| Brand Communications (Public & Investor Relations) Alan Green
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Tel: +44 (0) 7976 431608
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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 authroised at 5,000 barrels of water per day at 1,200 psi.
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