Helix Exploration (AIM:HEX) agreed to acquire 100% of Treasure State Drilling for US$600,000 satisfied wholly by the issuance of new shares, securing immediate rig access at its Rudyard Helium Project in northern Montana.
The US$600,000 share consideration is to be settled at a price referenced to a 20‑day VWAP from signing, equals a c.37% discount to an independent equipment appraisal of US$955,900 by Enneberg Excavation, and includes the sellers' undertaking to settle TSD's existing liabilities with completion subject to standard conditions.
"Owning our rig is a game‑changer for Helix; every well we drill from this point forward will be drilled without a day rate invoice and without a mobilisation bill," said Bo Sears, Chief Executive Officer.
TSD's primary asset is a Cardwell KB‑150 rig rated to 8,000 feet, equipped with an 800 HP Emsco mud pump, dual generator sets providing over 1,300 kW and more than 22,000 feet of drill pipe, and it has drilled all four of Helix's existing Rudyard production wells.
Helix says the acquisition permanently removes contract day rates, mobilisation and demobilisation costs for future Rudyard wells, eliminates rig availability risk, and leaves open the commercial option for TSD to undertake third‑party contract drilling although no external contracts have been agreed.
Completion is subject to the satisfaction or waiver of certain standard conditions.
