Business
Operations update
Operations update.
About this update from Mendell Helium Plc
[{"type":"text","content":"\n\n\n1 April 2025\n \nMendell Helium plc\n \n(\"Mendell Helium\" or the \"Company\")\n \nOperations update\n \nMendell Helium is pleased to provide an update on the ongoing progress of operations in Kansas, USA of M3 Helium Corp. (\"M3 Helium\") and in relation to, inter alia, the option to acquire M3 Helium and extension of farm in agreement with Scout Energy Partners.\n \nAs 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 its re-admission to trading on the AQSE Growth Market.\n \nHighlights\n \n· Option to acquire M3 Helium extended to 30 June 2025\n· Extension of farm in agreement with Scout Energy Partners (\"Scout Energy\") in Hugoton\n· Helium offload agreement in principle with Scout Energy for the Rost well\n· Hugoton farm in agreement fee to be substantially settled out of Rost offload agreement proceeds\n· Feasibility study to utilise waste methane from the Rost well to provide energy for a cryptocurrency/Bitcoin mining operation\n· Appointment of former Senior Operations Engineer of Scout Energy's Kansas assets executive as Chief Engineering Officer\n \nHugoton farm in and Rost well, Fort Dodge\n \nOn 6 November 2024, the Company announced a farm in agreement with Scout Energy covering seven townships in the Hugoton gas field (161,280 acres). The acreage is within Scout Energy's gathering system and proximate to the Jayhawk gas processing plant which is estimated to process around 4 per cent. of the world's helium.\n \nThe farm in agreement included an obligation on M3 Helium to drill a first well and make payment of a one-off fee of US$1 million by 31 March 2025. Scout Energy has now agreed to extend this deadline in return for a payment of US$100,000 with the remainder of the fee (i.e. US$900,000) to be settled from the proceeds of helium production as described below.\n \nAlongside M3 Helium's opportunities in the Hugoton,...