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Oil & Gas Helium Mendell Helium

Mendell Helium targets mid-August production start at Rost wells

It said de-watering at its Rost 1-26 and Rost 2-26 wells in Kansas should begin by mid-August, pending a utility grid connection, after upgrades across its Fort Dodge operations.

by tickstock newsroom
The image captures a drilling rig at sunset, silhouetted against a colorful sky. The rig is located in an industrial area, surrounded by equipment and machinery. — Credit: Photo by WORKSITE Ltd. on Unsplash c Photo by WORKSITE Ltd. on Unsplash

Mendell Helium (AIM:MDH), which produces helium in Kansas through its subsidiary M3 Helium, said de-watering at both its Rost wells in Fort Dodge is expected to start by mid-August pending completion of a utility connection.

The update follows upgrades across three assets: the Brobee saltwater disposal well, the Rost 2-26 production well and the Rost 1-26 production well, which began producing in November and recorded a flow rate of 250 Mcf per day in December.

Brobee's testing showed the disposal well operating under a full surface vacuum of 30 inHg, drawing fluid into the Arbuckle formation by gravity alone without active pumping pressure, cutting power use and equipment wear.

Permitted for up to 10,000 barrels of water per day, Brobee is designed to handle wastewater from both Rost wells and support future development in the area.

At Rost 1-26, perforations were doubled to four feet and the surface pumping unit is being upgraded from a 320 to a 640 unit, lifting water handling capacity to 900 barrels per day to accelerate gas liberation.

A sand-tolerant pump was also installed there to extend operational life by six to 12 months, with workovers completed using rig infrastructure already on site.

Rost 2-26 has received an optimised Halliburton electrical submersible pump and variable frequency drive unit with remote digital telemetry, with installation to begin once a new high-capacity electrical supply and transformer are connected.

Wellhead helium concentrations at Rost 1-26 remain stable at approximately 5.1%.

"We are now poised to commence production from both wells," said Nick Tulloch, chief executive of Mendell Helium, adding that Brobee's water intake "exceeds expectations".

News Intelligence what this means for the company

Mendell Helium has completed upgrades to its Fort Dodge operations and now targets mid-August de-watering at both Rost production wells, pending a utility grid connection. Rost 1-26 began producing in November with a 250 Mcf/day flow rate and stable 5.1% helium concentration; the company has doubled its perforations and upgraded its pumping unit from 320 to 640 capacity to accelerate water removal and gas liberation. The saltwater disposal well (Brobee) is operating above design expectations, handling wastewater without active pumping pressure, which should support both current wells and future development.

Investment case

The mid-August de-watering target represents near-term operational progress on assets already in the field, though it remains contingent on utility connection completion. This advances the company toward cash generation from its Kansas helium assets ahead of the planned M3 Helium acquisition completion in May 2026, but the timeline for material production ramp and processing deal execution remains anchored to 2026.

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Content is for informational purposes only, not financial advice.

by tickstock newsroom