Mendell Helium #MDH – Rost 2-26 most recent gas sample records 11.5% helium

Mendell Helium (LON: MDH), the helium exploration and production company, is pleased to announce that further gas analyses at its Rost 2-26 well (“Rost 2”) in the Fort Dodge area, Kansas have recorded helium concentrations of up to 11.5% in the most recently analysed sample.

Since the commencement of de-watering of Rost 2, the Company has undertaken several multi-sample gas analyses, which, in the Board’s view, have been consistently impressive. Across the most recent analyses the recorded helium concentrations have increased with the most recent sample registering 11.5% helium.

During this early de‑watering, Rost 2 is producing low gas volumes with the emerging gas‑to‑water ratio being characteristic of an undersaturated brine regime. As saturated brine with a free gas phase is present in Rost 1-26, approximately 330 feet away, the Company will continue to produce the well and evaluate next steps. Helium concentration is a measure of gas composition only and is not an indication of the volume of gas or helium that Rost 2 may ultimately produce.

Based on results to date, the Company is evaluating whether appropriate well stimulation (fracking) could increase gas volumes and helium recovery. Rost 2 is perforated with an acid stimulation across approximately twenty feet of reservoir. A frack design programme is being prepared with a possible plan for multiple stages across hundreds of feet of reservoir.

As a reminder, the Company utilised a mass spectrometer while drilling the Rost 2 and helium levels were found to be elevated across hundreds of feet of reservoir in both the Morrow and the Mississippian formations. If the current helium enrichment seen at Rost 2 persists, the Company will take steps to stimulate production with fracks in the Morrow and possibly also in the Mississippian. Fracking is likely to produce considerably more water in which case it may be necessary for Mendell Helium to upsize the Rost 2 pump to accommodate up to approximately 10,000 barrels per day.  The Company is fully funded for any additional work that it may undertake at Rost 2.

The Schneweis Ventures 13A (“Schneweis”) well continues to produce under its own pressure with gas being delivered directly into a pipeline owned by the Company’s joint venture partner, Ritchie Exploration Inc. (“Ritchie”).  Schneweis has now been connected to its salt water disposal well and is generating considerable water volumes also without the use of a pump. Ritchie reports that all on-site operations at the disposal well are proceeding satisfactorily. Gas production rates have reached a high of 700 Mcf/day but remain very variable during this de-watering phase.

Further updates will be made in due course as Rost 2 and Schneweis develop.

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

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/link/PKa6Ve

Enquiries: