Seismic work uncovers fresh Morrow sandstone targets as Mendell weighs expanding its Kansas helium campaign with partner Rixford Resources.
Mendell Helium (LSE: MDH) has identified five new prospective drilling locations at its Fort Dodge helium project in Kansas, adding to a 2026 programme that is already fully funded following April's fundraising round.
The discoveries stem from detailed interpretation of 3D seismic data gathered in July, which pinpointed targets in the Morrow sandstone formation already proven by the company's Rost 1-26 and Rost 2-26 wells. The news gives investors a clearer sense of the scale of Mendell's Kansas acreage, though no share price reaction was disclosed in the source material.
The five new targets sit alongside the previously flagged Enlow prospect, which already holds a drilling permit and is ready to go. Existing partner Rixford Resources, which has previously backed drilling at Rost 2-26 and the Brobee water disposal facility, has expressed interest in co-funding up to five additional wells, though any deal remains subject to definitive agreements, land access and regulatory sign-off.
Elsewhere on site, de-watering at Rost 2-26 continues at around 1,000 barrels a day, with management weighing a possible acid stimulation job costing US$50,000 to US$80,000 but not yet committing to the spend. The Schneweis Ventures 13A well, run with joint venture partner Ritchie Exploration, has previously flowed at up to 700 thousand cubic feet a day under its own pressure and is now due to begin water pumping of around 100 barrels daily from the week of 19 October.
Chief executive Nick Tulloch said the seismic work had sharpened the company's understanding of Fort Dodge and widened its menu of drilling options, while stressing that decisions at Rost 2-26 and Schneweis would be driven by well performance rather than premature spending. Investors will next watch for a finalised drilling schedule, confirmation of Rixford's additional funding, and production data from the two producing wells, with management cautioning that seismic interpretation alone does not prove commercial helium resources.
This report is based on Mendell Helium's announcement and coverage by Share Talk. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Zach Theo on Unsplash.