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Mendell Helium #MDH – Updated flow rate on Rost 1-26 well
Mendell Helium is pleased to announce an updated flow rate for M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well (“Rost”) in Fort Dodge, Kansas. The Company also provides an update on the ongoing development of Rost and the wider Fort Dodge region.
Highlights
- Flow rate at Rost has been measured at 250 Mcf per day –a 132% increase over the last measured rate in November 2025, equating to a potential value of approximately $3,800 of helium per day or approximately $1.4 million per year
- Rost is now flowing gas even when the pump is turned off
- M3 Helium will switch the well onto a beam pump which is more economical to run
- Discussions with partners to develop further wells in Fort Dodge are moving forward
As 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 six producing 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 a re-admission. As announced today, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 28 February 2026.
Rost
As previously announced, since de-watering operations began in September 2025, Rost has continued to increase production volumes. The most recent measured flow rate of 250 Mcf per day represents a 132% increase over the last measured rate in November of 108 Mcf per day.
With a 5.1% helium composition, current gas production from the well is equivalent to approximately $3,800 of helium per day. If that rate was consistent for a year then Rost would have an annualised helium production revenue of approximately $1.4 million per year. Investors should note that this is an illustration only. The well’s flow rate has doubled in each of the past two months and there is some evidence on site (as explained below) of continued strength in the reservoir but, once the well does peak, it is prudent to expect some decline in flow rates.
During the flow test, pressure was noted on the tubing (the inner part of the well where the water normally is pumped up and through) which was then opened to the water knock-out and separator. With the pump switched off, gas then continuously flowed from the tubing, feeding the Bauer compressor (which itself loads the tube trailer), until being shut off. Casing pressure reached 167 psi over an eight hour period without any pumping. Free flowing gas has not occurred before during M3 Helium’s operations and it represents a very positive sign as to how Rost may be developed. Firstly, it supports M3 Helium’s theory that the well is gaining strength as water is removed from the formation but, secondly, it provides a strong indicator of the pressure of the reservoir – which itself supports plans for further development in the area.
Free flowing gas does, however, require a different method for well management. To date, M3 Helium has operated Rost with a high-volume electric submersible pump (“ESP”) designed to remove large volumes of water. With fluid volumes from Rost now declining and, more particularly, quite gassy, an ESP is no longer suitable. These pumps are designed to support a consistent flow of water and, without the cooling that a solid water stream will provide, may overheat (an issue which M3 Helium is already facing). Foamy water cannot provide the same coolant properties.
Consequently, M3 Helium is intending to pull the ESP from the well and replace it with a more conventional, lower volume beam pump which has several advantages including being less energy consumptive and, generally, having less costly components should future maintenance be required. There is already a beam pump on site at Rost (from previous operations) and so a contractor has been engaged to switch the pumps next week. There will be a short pause in the well’s production whilst this work is done but the end result will be a more efficient, and lower cost, operation. It should be noted that M3 Helium always expected to swap the ESP for a beam pump at Rost but the timing for this action was not predicted to be as soon as it has occurred
Once removed from Rost, the ESP will be reconditioned and can be re-used on the next well that M3 Helium undertakes in Fort Dodge. With the ESP being the most expensive capital item for a new production well, this will be a substantial cost saving on the next development.
Developing Fort Dodge
On 8 December 2025, Mendell Helium announced that it was in advanced discussions with a group of US based investors who have expressed interest in supporting M3 Helium in drilling a new production well in the Fort Dodge region and furthermore that it had reached an agreement in principle with a local well owner to dewater and recomplete a currently disused well. These discussions are progressing quickly with further meetings scheduled for this week.
Alongside that, M3 Helium continues to work with specialist engineers to enhance its Fort Dodge operations. The performance of Rost points to a more advanced helium purification set up. Put simply, with the quantity of total gas being produced, the site – and future sites – will benefit from a system that separates the helium, and other valuable components, more effectively. The objectives are to reduce the overall volumes that are handled on site as well as ensuring that a higher purity helium mix is shipped, thereby eliminating the logistics of transporting waste. Several solutions have been identified, all of which will supplement the facilities already in place.
Work being done now to streamline Rost will pave the way for optimal future developments at Fort Dodge.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “I’ve spoken positively about Rost for some time now but today’s news takes the project to an entirely new level. In less than three months since operations began, Rost has already reached a flow rate corresponding to revenue potential of over $100,000 of helium per month and close to $1.4 million of helium per year.
“Naturally we approach each project with optimism but these results surpass all of our expectations. The increasing scale of the project does require a reappraisal of the on-site operations. Switching to a beam pump will reduce operating costs and Rost’s ESP can then be re-fitted into a new well. The rapid growth in Rost’s flow rate has also accelerated M3 Helium’s strategy for upgrading the surface operations. With a line of sight to developing new wells in Fort Dodge with prospective financial and industry partners, these works are providing the blue print for larger scale operations.”
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:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| AlbR Capital Limited
Gavin Burnell, Colin Rowbury, Jon Belliss
|
Tel: +44 (0) 207 4690930
|
| Brand Communications (Public & Investor Relations)
Alan Green |
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium’s flagship well, Rost 1-26, is in Fort Dodge, just to the east of Dodge City, Kansas. It has been tested as containing 5.1% helium composition and a drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium although management believes on-site purification to around 75% will be more practical.
Water removed from Rost 1-26 is delivered to Brobee, a nearby disposal well that has been permitted at 5,000 barrels of water per day at 1,200 psi.
Production at Rost 1-26 commenced in early November 2025 and the most recently recorded flow rate in December 2026 was 249.6 Mcf per day equating to approximately $1.4 million of helium per year.
M3 Helium also has interests in five producing wells (Peyton, Smith, Nilson, Bearman and Demmit) within the Hugoton gas field in South-Western Kansas, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells are all tied into the infrastructure.
M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and has drilled a pilot well (Jasper). It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.
Forward Looking Statements
These forward-looking statements are not historical facts but rather are based on the Company’s current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as ‘anticipates,’ ‘expects,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘seeks,’ ‘estimates,’ and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company’s control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
Important Notices
Mendell Helium plc (the “Company”) intends in the future to invest surplus cash and hold treasury reserves in bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board of Directors of the Company considers holding bitcoin to be in the best interests of the Company, the Board is aware that the financial regulator in the UK (the “Financial Conduct Authority” or “FCA”) considers investment in bitcoin to be high risk. However, the Board of Directors of the Company consider bitcoin to be an appropriate store of value and growth for the Company’s reserves and, accordingly, the Company may in the future be materially exposed to bitcoin. Such an approach is innovative, and the Board of Directors of the Company wish to be clear and transparent with prospective and actual investors in the Company on the Company’s position in this regard. An investment in the Company is not an investment in bitcoin, either directly or by proxy.
The Company is neither authorised nor regulated by the FCA and cryptocurrencies (such as bitcoin) are unregulated in the UK. As with most other investments, the value of bitcoin can go down as well as up, and therefore the value of bitcoin holdings can fluctuate. The Company may not be able to realise any future bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to bitcoin positions due to these market movements. As bitcoin is unregulated, the Company is not protected by the UK’s Financial Ombudsman Service or the Financial Services Compensation Scheme. Prospective investors in the Company are encouraged to do their own research before investing.
Mendell Helium #MDH – Further re Broker Option Convertible Loan Note and Appointment of Joint Broker
Mendell Helium announces that, further to its announcement of 17 November 2025, the Company is pleased to announce that it has raised, through the Subscription and an unsecured convertible loan note facility (“CLN”) with certain high net worth investors, aggregate gross proceeds of approximately £513,000.
Highlights
Fundraising
- A total of 7,102,320 new Ordinary Shares have been issued through the Subscription (all as previously announced) to raise approximately £213,000
- A further £300,000 of funding is available to the Company through the CLN, with the timing most likely linked to the next phase of expansion of M3 Helium Corporation’s (“M3 Helium”) Fort Dodge, Kansas projects
- The CLN, if converted before the Company is admitted to trading on AIM, entitles the holders to new Ordinary Shares at a price of 3 pence per share (further details are below)
- The CLN, if converted after the Company is admitted to trading on AIM, entitles the holders to new Ordinary Shares at a price of 4.5 pence per share (further details are below)
Operations
- Advanced discusssions with a group of US based investors who have expressed interest in supporting M3 Helium in drilling a new production well in the Fort Dodge region
- Agreement in principle with a local well owner to dewater and recomplete a currently disused well
As 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 six producing 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 a re-admission. As announced on 1 December 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 28 February 2026.
Subscription
Investments in the Subscription were announced on 17 and 25 November 2025 and 4 December 2025. No further new Ordinary Shares have been issued pursuant to this announcement.
For every two new Ordinary Shares issued pursuant to the Subscription, investors have received one warrant allowing the holder to subscribe for an additional new Ordinary Share in the Company at an exercise price of 4.5 pence per Ordinary Share, exercisable within two years of Admission (as defined further below) and one warrant allowing the holder to subscribe for an additional new Ordinary Share in the Company at an exercise price of 6 pence per Ordinary Share, each exercisable within two years of Admission. In aggregate 7,102,320 warrants have been issued pursuant to the Subscription. The warrants will not be tradeable, nor transferable or CREST-enabled.
Investments in the Subscription were announced on 17 and 25 November 2025 and 4 December 2025. No further new Ordinary Shares have been issued pursuant to this announcement.
No commissions are due under the Subscription as each subscriber made a direct investment in the Company.
Convertible Loan Note
Further to the announcement on 4 December 2025, certain high net worth investors have agreed to provide £300,000 under the unsecured CLN in substitution of the Broker Option. The advantage of this structure is that it secures funding for the Company at the likely time of the next phase of expansion of its Fort Dodge, Kansas projects but, unless the CLN is converted prior to the move to AIM (as described below) is a less dilutive structure for Mendell Helium’s shareholders.
Key terms of the CLN are detailed below:
- The CLN can be converted by the holders into new Ordinary shares at 3p up to the date of Mendell Helium’s proposed admission to trading on AIM
- The CLN can be converted by the holders into new Ordinary shares at 4.5p after the date of Mendell Helium’s proposed admission to trading on AIM
- If the CLN is converted then £300,000 (or pro rata) is payable to the Company at the time of conversion
- If the CLN is not converted, the Company agrees not to draw down on the CLN until the later of (i) admission to trading on AIM or (ii) 14 February 2026
- Following draw down, CLN carries a coupon of 10% payable half yearly or can at any time be converted into new Ordinary Shares at 4.5 pence per share
- A 5% fee will be payable in new Ordinary shares on draw down of the CLN
- The CLN will expire if it is neither converted nor drawn down by 30 April 2026
- The CLN is repayable in full (principal and interest) by the later of (i) second anniversary of admission to AIM or (ii) 14 February 2028
- The CLN will expire if it is neither converted nor drawn down by 30 April 2026
In consideration for providing the CLN, investors in the CLN will be issued, in aggregate, 10,000,000 warrants on the same terms as the Subscription as described above.
AlbR Capital Limited (“AlbR”) acted as the Company’s broker in connection with the CLN. The Company is pleased to announce that AlbR has been appointed as a Joint Broker to the Company with immediate effect.
Use of proceeds
On 17 November 2025, Mendell Helium announced that the success of M3 Helium’s Rost 1-26 well (“Rost”) had generated interest from finance partners, nearby well owners and specialist engineers, all of whom have expressed interest in principle in working with M3 Helium to expand its operations in Fort Dodge, Kansas. The Company is now pleased to provide the following update:
- Mendell Helium is in advanced discussions with a group of US based investors who have expressed interest in supporting M3 Helium in drilling a new production well in the Fort Dodge region.
- Mendell Helium has reached an agreement in principle with a local well owner to dewater and recomplete a currently disused well. This partnership would provide a faster route to expansion than drilling on a new site.
- The Company has also received recommendations from several firms of specialist engineers to enhance M3 Helium’s Fort Dodge operations by, amongst other things, purifying produced helium to a higher concentration and capturing produced NGLs for sale.
As previously announced, whilst there can be no guarantee that any of the above opportunities will be realised, given Rost has attracted so much attention in its early weeks of operation is an indication of both Rost’s and the region’s potential.
Mendell Helium intends to apply the proceeds of the Subscription and, in time, the CLN through issuing additional loans to M3 Helium to enable M3 Helium to further invest in its operations at Rost and to continue to investigate the opportunity for M3 Helium to expand its interests in the Fort Dodge area through additional producing wells.
At the date of this announcement Mendell has provided approximately US$1.3 million in loans to M3 Helium including accrued interest.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “Our fundraising which began as an offer of new investment from one shareholder has closed with in excess of £0.5 million of new funds secured for Mendell Helium. The success of M3 Helium’s operations in Kansas and the prospects that its has created in the Fort Dodge region have attracted support from both existing shareholders and new investors – and significantly from industry partners in the US. The convertible loan note structure has been employed as a creative mechanism that may delay access to funds until such time as M3 Helium requires them – namely for new wells in Fort Dodge – and, subject to the timing of conversion, may be less dilutive for existing holders than taking all the funds in now through the issue of new Ordinary Shares.
“M3 Helium’s Rost well is a complex dewatering and helium purification project. In proving its success, as evidenced by commercial production of helium being underway, it is no surprise that there is now rising interest in working with M3 Helium on related projects. Proceeds of the fundraising puts M3 Helium in a strong position to develop and, in time, conclude these discussions and, with that, secure the next phase of development at Fort Dodge.”
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/s/a6a55a
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| AlbR Capital Limited
Gavin Burnell, Colin Rowbury, Jon Belliss
|
Tel: +44 (0) 207 4690930
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Mendell Helium #MDH – Update on development of Fort Dodge region, Kansas Option Extension
Mendell Helium is pleased to announce an update on its proposed strategy for the development of further production wells proximate to M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well (“Rost”) in Fort Dodge, Kansas. The Company also provides an update on the timing of its proposed move to AIM.
Highlights
- Preliminary interest from two parties to finance new wells in Fort Dodge region
- Several suitable further drilling locations have been identified in the same formation as Rost
- Ongoing discussions with a third party operator to collaborate on recompleting an existing well in the region
- On-site consultations with specialist engineers at Rost with a view to maximizing production potential at future wells
As 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 six producing 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 a re-admission. As announced today, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 28 February 2026.
Developing Fort Dodge
The thesis underpinning the development of Rost was that a high volume de-watering programme would in time enable gas production. With a 5.1% helium concentration, Rost has a clear attraction. The formation accessed by Rost extends through a narrow channel in the Fort Dodge area indicating the possibility forfurther wells. Gas composition may vary but the same de-watering technique will be required. M3 Helium is aware of other wells nearby that were, at the time of their completion, considered unsuccessful due to water content but it believes that mirroring the work done at Rost could overcome these challenges and, in doing so, could deliver production from elsewhere in the Fort Dodge region.
A key feature of the Fort Dodge region is that it can access several suitable water disposal formations. This is an essential part of the strategy. In considering new well locations, M3 Helium models the possibility of several thousand barrels of water being produced each day. Without the abiity to return that water to a different formation, the operation would be uneconomic. Trucking water would be prohibitively expensive as well as, in the directors view, probably logistically impossible given the required volumes.
In particular, it is M3 Helium’s view that future wells should be drilled to accommodate larger casing to allow for greater water – and therefore potentially greater gas – production. Following on from that, future disposal wells are likely to access deeper formations which are expected to be able to deal with these predicted water volumes (Rost’s disposal well, the Brobee, is presently using one of the shallower zones).
As previously announced, M3 Helium has already leased additional land that it considers will be suitable for new wells and it is continuing to take steps to expand its land holdings in the Fort Dodge region.
Identified opportunities for new wells
Following on from the ongoing success at Rost, M3 Helium has been contacted by, and has opened preliminary discussions with, two separate finance providers who have expressed interest in working with M3 Helium to develop more wells in the Fort Dodge region. Both parties are experienced in oil & gas and, in both cases, any arrangement would see the funders taking an interest in the new wells. There would be no dilution to M3 Helium shareholders nor Mendell Helium shareholders. The subscription that was announced on 17 November 2025 is expected to provide sufficient funds for M3 Helium to advance these discussions.
The Fort Dodge region contains numerous existing oil & gas wells. Several of these existing wells quickly encountered water that ultimately constrained production but initially evidenced strong flow rates. M3 Helium believes that the Rost de-watering technique could be employed to recomplete other wells in the region. It is currently in early stage discussions with a third party operator to test this theory by recompleting a shut in well owned by that party. Should those discussions conclude and should recompletion of that well succeed, then this could open up a new business opportunity, namely bringing existing wells in operation rather than drilling new wells. As well as being a faster route to expansion, the directors believe that this strategy arguably has less risk in that existing wells have evidenced prior flow rates.
There can be no certainty that final binding terms will be agreed with either the funding partners referred to above or the third party operator, nor as to the timing, value or conditions of such terms. Further updates will be provided in due course.
In preparation for the next stage of its expansion, M3 Helium has already met with specialist engineers. Its objectives are to maximise production from each well, noting corresponding water disposal requirements, and design facilities to increase the purification on site of any produced helium to maximise the value of each delivery. Rost provides a blueprint for surface facilities but M3 Helium, working with specialists, believes it has identified opportunities to scale up.
Significantly, discussions with M3 Helium’s offtaker in respect of this proposed expansion are positive. In addition to confirming that it will accept higher levels of production, the offtaker has also indicated that it can work with M3 Helium to improve surface facilities, specifically by providing mobile pressure swing adsorption units at well sites to assist in purification of produced helium.
Update on proposed move to AIM and completion of acquisition of M3 Helium
A key remaining workstream in preparation for the Company’s move to AIM is to audit M3 Helium’s accounts for the period to 30 June 2025 (“2025 Audit”). All other workstreams are either materially advanced or complete. The statutory accounts for the 2025 Audit have been prepared and, noting that the audit for the prior year has been completed, Mendell Helium is targeting for the 2025 Audit to be finalised during December 2025. This is likely to put the timing of the move to AIM in early 2026. Mendell Helium will make further announcements in due course.
As previously announced, the Company and M3 Helium have agreed that the optimum date on which the Option should be exercised is the date of admission to AIM on the basis that this will be most efficient in terms of production of the required regulatory documentation. With this in mind, the Company and M3 Helium have agreed to extend the Option to 28 February 2026.
The date for repayment of the loan made by Mendell Helium to M3 Helium has been similarly extended to 28 February 2026. At the date of this announcement Mendell Helium has provided approximately US$1.45 million in loans to M3 Helium including accrued interest.
There are no other changes to the Option which will be exercised through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “I spent a week in Kansas in the latter part of November during which I held several productive meetings with potential partners for M3 Helium. With its innovative de-watering technique, the process at Rost supplements conventional wisdom in gas exploration and production so it is no surprise that the success of the well has generated interest from third parties.
“The formation that Rost produces from is a narrow channel. M3 Helium has now extensively mapped suitable further drilling locations and so the opportunity to work with local funding partners and operators has come at an ideal time. Perhaps more significantly, the confidence being shown in M3 Helium from local industry specialists is a powerful validation of what it has achieved to date. As I have said before, the opportunity to develop further prospects in Fort Dodge without relying solely on investment from our shareholders is looking increasingly possible.
“Our move to AIM remains a core foundation of our strategy. As we have focused on advancing M3 Helium’s operations, the administrative process has moved slightly slower than first planned but the timing may nevertheless work in our favour. It has always been our strategy to move to AIM once Rost was in production and, with that milestone achieved, the Board believes the Company is well positioned to enhance its appeal to investors by progessing plans to drill additional production wells at Fort Dodge.”
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/s/a6a55a
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green |
Tel: +44 (0) 7976 431608
|
Mendell Helium #MDH – Subscription, Issue of Equity and Warrants
Mendell Helium announces that it has raised approximately £200,000 by way of a subscription (“Subscription”) through the issue of 6,682,320 new ordinary shares of 1 pence each in the Company (“Ordinary Shares”) at an issue price of 3 pence per new Ordinary Share.
Highlights
· Subscription to raise approximately £200,000 at 3 pence per new Ordinary Share
· Subscription is a direct investment by existing shareholders in the Company and M3 Helium, without payment of commissions
· Broker option (the “Broker Option“) for a further up to 10,000,000 new Ordinary Shares (the “Broker Option Shares“) which will raise up to a further £300,000 enabling existing shareholders to participate in the Subscription via AlbR Capital Limited (“AlbR”)
· Rost 1-26 helium well continues to perform in line with expectations
· M3 Helium has received interest from finance partners, nearby well owners and specialist engineers, all of whom have expressed interest in principle in working with M3 Helium to expand its operations in Fort Dodge, Kansas
· Raw helium being shipped to off-taker pending commissioning of on-site PSA
· Preparations for the move to AIM are continuing
As 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 six producing 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 a re-admission. As announced on 30 September 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 November 2025.
Subscription and Issue of Warrants
The Company has raised approximately £200,000 through the issue of 6,682,320 new Ordinary Shares, at the Issue Price, pursuant to the Subscription.
The Subscription has been agreed with existing shareholders of the Company and M3 Helium and has been carried out directly by the Company, without payment of commissions.
For every two new Ordinary Shares issued pursuant to the Subscription, investors will receive one warrant allowing the holder to subscribe for an additional new Ordinary Share in the Company at an exercise price of 4.5 pence per Ordinary Share, exercisable within two years of Admission (as defined further below) and one warrant allowing the holder to subscribe for an additional new Ordinary Share in the Company at an exercise price of 6 pence per Ordinary Share, each exercisable within two years of Admission. In aggregate 6,682,320 warrants have been issued pursuant to the Subscription. The warrants will not be tradeable, nor transferable or CREST-enabled.
Strategic update and use of proceeds
As anounounced on 10 November 2025, commercial gas production at M3 Helium’s Rost 1-26 well (“Rost”) has commenced. Gas from the well head, with a 5.1% helium concentration, is being compressed into a tube trailer on site for delivery to a nearby off-taker. Following commissioning of the pressure swing adsorption (“PSA”) unit and gas-separation membranes, M3 Helium expects to deliver a more concentrated mix (the estimated target is 75% helium).
Based on the well’s performance to date, M3 Helium considers that the potential of Rost may be significant and this is evidenced by the operations attracting the attention of several parties including:
· Specialist engineers and midstream operators who have expressed interest in assisting M3 Helium in further purifying the helium on site and thereby increasing the value of each delivery
· Finance providers who have indicated support for drilling further wells in the Fort Dodge area (this finance, if available, would be linked to prospective new wells and so would not require a dilutive share issue)
· Other local well owners potentially interested in working with M3 Helium to determine whether the dewatering process applied at Rost would also be applicable to their wells
Whilst there can be no guarantee that any of the above opportunities will be realised, given Rost has attracted so much attention in its early weeks of operation is an indication of the well’s potential.
Mendell Helium intends to apply the proceeds of the Subscription through issuing additional loans of up to £200,000 to M3 Helium to enable M3 Helium to further invest in its operations at Rost and to continue to investigate the opportunity for M3 Helium to expand its interests in the Fort Dodge area through additional producing wells.
At the date of this announcement Mendell has provided approximately US$1.3 million in loans to M3 Helium including accrued interest.
Additionally, as anounounced on 10 November 2025, progress continues to be made on the preparations for Mendell Helium’s proposed admission to trading on AIM. Further announcements will be made in due course.
Broker Option
In order to provide qualified Mendell Helium shareholders (“Existing Shareholders“) and other qualified investors with an opportunity to participate on the same basis as the investors in the Subscription, the Company has granted AlbR a Broker Option over 10,000,000 new Ordinary Shares (or such other number of Ordinary Shares as agreed between the Company and Albr). Full take up of this number of Broker Option Shares would raise a further £300,000 for the Company, before expenses.
Existing Shareholders who hold shares in the Company and are on the register of members as at the close of business on 14 November 2025, will be given a priority right to participate in the Broker Option and all orders from such Existing Shareholders will be accepted and processed by AlbR, subject to scale-back in the event of over-subscription under the Broker Option. The Broker Option has not been underwritten.
The Broker Option is exercisable by AlbR on more than one occasion, at any time from the time of this announcement to 4.30 p.m. UK time on 24 November 2025, at its absolute discretion, following consultation with the Company. There is no obligation on AlbR to exercise the Broker Option or to seek to procure subscribers for the Broker Option. AlbR may also, subject to prior consent of the Company, allocate new shares after the time of any initial allocation to any person submitting a bid after that time.
The Broker Option Shares are not being made available to the public and none of the Broker Option Shares are being offered or sold in any jurisdiction where it would be unlawful to do so. No Prospectus will be issued in connection with the Broker Option.
To subscribe for Broker Option Shares, Existing Shareholders and other qualified investors should communicate their bid to Albr via their stockbroker as AlbR cannot take direct orders from individual private investors. Existing Shareholders or other interested parties who wish to register their interest in participating in the Broker Option Shares should instruct their stockbroker to call AlbR on 020 7469 0930. Each bid should state the number of Broker Option Shares the Existing Shareholder wishes to subscribe for at the Issue Price.
Admission
Application will be made for the 6,682,320 new Ordinary Shares to be admitted to trading on the Aquis Stock Exchange AQSE Growth Market (“Admission”). Admission is expected to occur at 8:00 a.m. on or around 24 November 2025. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares.
Total Voting Rights
Following Admission, the Company’s enlarged share capital will comprise 122,837,973 Ordinary Shares of 1 pence each. Therefore, the total number of voting rights in the Company will be 122,837,973. This figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in the Company, or a change to their interest in the Company, under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “For a considerable part of this year, M3 Helium’s focus has been on bringing Rost into production. The operation has been a considerable success but the work is not yet over.
“I am returning to Kansas this week to meet with potential partners as M3 Helium looks to expand its operations in the Fort Dodge region.
“We are grateful for the support that our shareholders have shown us in today’s subscription. It has been a long road to get here but Rost is a well that is now attracting attention, not just in Kansas but also in other US states which is a rare opportunity for a small company and we are determined to explore all avenues as we seek to develop further prospects in Fort Dodge.”
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/s/a6a55a
Enquiries:
|
Investor questions on this announcement We encourage all investors to share questions on this announcement via our investor website
|
|
|
Mendell Helium plc Nick Tulloch, CEO
|
Via our website investors@mendellhelium.com |
|
Cairn Financial Advisers LLP (AQSE Corporate Adviser) Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
|
SI Capital Limited (Broker) Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
|
Fortified Securities Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
|
Brand Communications (Public & Investor Relations) Alan Green
|
Tel: +44 (0) 7976 431608
|
Mendell Helium #MDH – Helium Production commences at Rost
Mendell Helium is pleased to announce that production of helium has commenced at M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well in Fort Dodge, Kansas (“Rost”).
Highlights
- Commercial production at Rost has commenced
- Rost flow rates continue to increase in significant increments each day as de-watering progresses
- The well is now producing in excess of 100 Mcf per day of total gas
- Initial gas deliveries to the off-taker will be made by tube trailer
- Potential secondary revenue stream through sales of NGLs
- Preparations for the move to AIM are continuing
As 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 six producing 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 a re-admission. As announced on 30 September 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 November 2025.
Production at Rost
Gas from Rost is now being compressed into a tube trailer which has been leased by M3 Helium. The tube trailer’s capacity is around 160 Mcf meaning, with a 5.1% helium concentration, each cargo of raw gas from the well has a value of around $2,400 to M3 Helium.
Flow rate from the well continues to increase in line with de-watering and in accordance with M3 Helium’s expectations. On 6 November 2025, the flow rate was measured at 107.7 Mcf/day, which is more than double the previous recorded rate two weeks ago, and equivalent to over $1,600 of helium per day.
The increase in flow rate is particularly remarkable for two reasons. Firstly, resistance to flow was recorded at 393 psi (being water head pressure on the formation). Secondly, the well was shut in for a few days to allow for maintenance on the submersible pump’s motor.
The current flow rate from Rost already exceeds the capacity of the Bauer compressor pump which is connected to the tube trailer and M3 Helium is therefore limiting the pump speed until the on-site pressure swing adsorption (“PSA”) unit and gas-separation membranes are fully commissioned. This will remove much of the nitrogen from the gas mix thereby enabling both a faster fill of helium into the tube trailer and a more concentrated mix (the estimated target is 75% helium by composition following treatment by the PSA and membranes).
Once a concentrated helium gas mix is delivered to the tube trailer, each cargo is estimated to have a value of around $36,000 to M3 Helium.
Alongside gas production, Rost is also producing natural gas liquids (“NGLs”), a low-density mixture of hydrocarbon liquids. The M3 Helium team are putting in place a NGL recovery method to separate these from the gas mix to avoid compromising the compressor. At the current production volume and composition, M3 Helium estimates that it will collect around two barrels of NGLs per day which will provide a secondary revenue stream for Rost.
Admission to AIM
Progress continues to be made on the preparations for Mendell Helium’s proposed Admission to AIM. Final drafts of all key reports, including the competent person’s report, M3 Helium 2024 audit and US legal due diligence, have been received by the Company, and the focus is now on concluding the drafting and verification of the admission document.
Further announcements will be made in due course.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “M3 Helium’s Rost well continues to perform in line with expectations and we have now reached the culmination of the work and planning that has gone into the project with commercial production now underway. Rost is currently generating over US$1,600 of helium per day. This milestone achievement is nevertheless just the beginning as we expect the revenue capabilities of the well to increase in line with rising production and, importantly, on-site purification once the PSA is fully commissioned.
“The validation of the operations now opens the way for further expansion in the Fort Dodge area. M3 Helium has already leased additional land and will now assess suitable locations for further wells.”
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/s/a6a55a
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium’s flagship well, Rost 1-26, is in Fort Dodge, just to the east of Dodge City, Kansas. It has been tested as containing 5.1% helium composition and a drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium although management believes on-site purification to around 75% will be more practical.
Water removed from Rost 1-26 is delivered to Brobee, a nearby disposal well that has been permitted at 5,000 barrels of water per day at 1,200 psi.
Production at Rost 1-26 commenced in early November 2025.
M3 Helium also has interests in five producing wells (Peyton, Smith, Nilson, Bearman and Demmit) within the Hugoton gas field in South-Western Kansas, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells are all tied into the infrastructure.
M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and has drilled a pilot well (Jasper). It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.
Forward Looking Statements
These forward-looking statements are not historical facts but rather are based on the Company’s current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as ‘anticipates,’ ‘expects,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘seeks,’ ‘estimates,’ and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company’s control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
Important Notices
Mendell Helium plc (the “Company”) intends in the future to invest surplus cash and hold treasury reserves in bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board of Directors of the Company considers holding bitcoin to be in the best interests of the Company, the Board is aware that the financial regulator in the UK (the “Financial Conduct Authority” or “FCA”) considers investment in bitcoin to be high risk. However, the Board of Directors of the Company consider bitcoin to be an appropriate store of value and growth for the Company’s reserves and, accordingly, the Company may in the future be materially exposed to bitcoin. Such an approach is innovative, and the Board of Directors of the Company wish to be clear and transparent with prospective and actual investors in the Company on the Company’s position in this regard. An investment in the Company is not an investment in bitcoin, either directly or by proxy.
The Company is neither authorised nor regulated by the FCA and cryptocurrencies (such as bitcoin) are unregulated in the UK. As with most other investments, the value of bitcoin can go down as well as up, and therefore the value of bitcoin holdings can fluctuate. The Company may not be able to realise any future bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to bitcoin positions due to these market movements. As bitcoin is unregulated, the Company is not protected by the UK’s Financial Ombudsman Service or the Financial Services Compensation Scheme. Prospective investors in the Company are encouraged to do their own research before investing.
Mendell Helium #MDH – De-watering begins at Rost Well
Mendell Helium is pleased to announce that the de-watering process has commenced at M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well in Fort Dodge, Kansas (“Rost”).
Highlights
- ESP is pumping an estimated 50 barrels of water per hour
- Water from Rost is foamy in appearance, indicating the presence of gas
- With de-watering underway, the operations team will now make preparations for production
- Admission to AIM is expected to follow production commencing at Rost
As 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 eleven 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 a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.
Fort Dodge, Kansas
Mendell Helium is pleased to confirm that de-watering of Rost commenced at the end of last week on schedule. The Electrical Submersible Pump (“ESP”) installed in the well is operating and removing an estimated 50 barrels of water per hour. Water is initially delivered to one of four storage tanks and from there will be injected into the Brobee salt water disposal well using a triplex pump.
Early flow from the Rost well has yielded gas saturated water, with pronounced foaming observed at surface. Whenpumping began, the well casing was on vacuum at approximately -4.0 psi. The vacuum reduced immediately and by Saturday morning had reversed with gas observed venting to surface.
The M3 Helium team will monitor the well over the coming days. In the meantime, the team on site will start preparing for production including connecting the compressor which will be used to fill tube trailers to deliver gas to an off-taker.
Preparations for commissioning the pressure swing adsorption (“PSA”) unit to purify the produced helium are also continuing.
Nebraska
Mendell Helium is also pleased to provide an update on progress at M3 Helium’s Jasper well. During the course of last week, the faulty pump was repaired and operations resumed. As anticipated, conductor casing has now been inserted into the wellbore to provide structural support and a smaller diameter drill bit is being used to help reduce any further instability. Drilling is now back underway again and further announcements will be made in due course.
Admission to AIM and Annual Report
Alongside the heavy work commitments arising from the field operations, good progress has also been made on Mendell Helium’s proposed Admission to AIM. As announced on 23 June 2025, the Company and M3 Helium had agreed that the optimum date on which the Option should be exercised is the date of admission to AIM on the basis that this will be most efficient in terms of production of the required regulatory documentation. The Company also determined that the appropriate time to seek Admission to AIM should shortly follow production commencing at Rost. With de-watering now underway, Mendell Helium is making the final preparations for the extensive documentation required. The Company expects to publish its annual report for the year ended 31 March 2025 around the last week of September 2025 and a further announcement will be made then of the target timetable for admission to AIM.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “I am very pleased to report that M3 Helium has reached a milestone at Rost last week. With de-watering at Rost underway, the next step is to prepare for production in what we believe will be a very significant revenue producing well for M3 Helium. With 5.1% helium and a high pressure reservoir, Rost has understandably attracted considerable attention within the Kansas oil & gas industry and that in turn is further raising the profile of M3 Helium.
“In what has been another busy week, a considerable amount of credit is due to M3 Helium’s operations teams on site. With waterlogged ground at Rost following heavy rains, connections have been run at the surface – to be trenched later – to help in meeting the timetable. And after a challenging period at Jasper, the team there have worked through the weekend to make up for lost time.
“As the Rost and Jasper projects reach their conclusion, we are looking forward to updating our investors further.”
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/s/a6a55a
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.
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in ten wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas. It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.
The tenth well, Brobee, is a disposal well that has been authorised at 5,000 barrels of water per day at 1,200 psi.
M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and is drilling a pilot well (Jasper). It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.
Mendell Helium #MDH – Further update on Fort Dodge and Nebraska operations
Mendell Helium is pleased to provide an update on M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well in Fort Dodge, Kansas (“Rost”) and the Jasper well in Nebraska.
As 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 eleven 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 a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.
Fort Dodge, Kansas
Mendell Helium is pleased to confirm that 
remains on track to commence de-watering of Rost this week. The final items of equipment required for operations, being the separator and triplex pump for the Brobee salt water disposal well (“Brobee SWD”), are being delivered in the coming days. M3 Helium’s contractor is on site to take delivery and make the necessary connections between Rost and Brobee SWD.
Once everything is in place, de-watering will commence immediately.
During the past week, the final parts for the on-site pressure swing adsorption (“PSA”) unit to purify the produced helium have also been delivered. Preparations for commissioning have commenced and will continue during the de-watering phase.
Furthermore, the Bauer compressor, which will be used to load tube trailers with gas from Rost, is now scheduled to arrive this week, several days ahead of schedule. As previously announced, M3 Helium has identified an off-taker prepared to receive the raw gas from the well. As the de-watering of Rost progresses and gas production starts to come through, management will be able to assess whether it will be economic to ship a 5.1 per cent. helium mix to the off-taker’s site. Once connected, the PSA is expected to purify the helium composition to around 75 per cent. of the resultant gas mix. However, M3 Helium will deliver the raw gas pending that connection if feasible to do so.
Nebraska
Operations at the Jasper well have been more frustrating. Unfortunately the commencement of drilling coincided with wet weather in the area which caused delays and this was compounded by a faulty pump which was not clearing the drill cuttings sufficiently quickly. The problem with the pump was a small leak in the internal liner and, consequently, it was not immediately diagnosed. The drilling team will return this week with repaired equipment and will assess whether the stability of the wellbore has been compromised by the earlier operations. If necessary, a conductor will be inserted into the wellbore – this is a large-diameter casing string which is installed to provide structural support for loose surface formations.
Although these events will extend the time for drilling operations on Jasper, they are not indicative of the potential success of the operation and M3 Helium’s management continue to be optimistic about the overall project.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “The hard work on Rost is reaching a conclusion and the M3 Helium team will shortly be commencing de-watering of the well. With the commissioning of the PSA already underway and an off-taker prepared to receive raw gas from Rost, it is reasonable to conclude that helium sales may be not far away. We have spoken several times about the importance of Rost and its capability to generate revenue so it would be an understatement to say these next few weeks are going to be very exciting.
“Operations in Nebraska have been more frustrating and M3 Helium has been unfortunate with weather delays and faulty equipment. However, the team have been quick to address the problem and operations will be back underway this week.”
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/s/a6a55a
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.
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in ten wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas. It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.
The tenth well, Brobee, is a disposal well that has been authorised at 5,000 barrels of water per day at 1,200 psi.
M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and is drilling a pilot well (Jasper). It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.
Mendell Helium #MDH – Update on Fort Dodge and Nebraska operations
Mendell Helium is pleased to provide an update on M3 Helium Corporation’s (“M3 Helium”) Rost 1-26 well in Fort Dodge, Kansas (“Rost”) and the Jasper well in Nebraska.
Highlights
- Rost Well, Kansas: Preparations for de-watering are progressing, with first operations expected to commence in early September 2025.
- Jasper Well, Nebraska: Operations are underway. Drilling is expected to be completed by the end of August 2025. If successful, the Jasper Well may be able to support a future Bitcoin mining project.
As 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 eleven 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 a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.
Fort Dodge, Kansas
The four water tanks which are to be positioned between Rost and the Brobee salt water disposal well (“Brobee SWD”) have arrived on site and the catwalk between them has been installed. The remaining items of major equipment are the triplex pump for the Brobee SWD and the separator and knock-out (which together separate any liquids from the gas stream). These are anticipated to be delivered either during next week or by early September 2025.
With delivery times confirmed and the larger items already in place, M3 Helium continues to expect de-watering operations to commence in the first half of September 2025. The project overall remains under budget.
Once Rost is operational, M3 Helium will connect the pressure swing adsorption (“PSA”) unit that is already on site which will purify the produced helium. The most efficient level of purity will be determined once production begins but, as a guide, M3 Helium is expecting to ship helium at around 75 per cent. purity. M3 Helium has secured delivery of a Bauer compressor, expected on site in mid-September 2025, which will be used to load tube trailers with gas from Rost.
A significant advantage of Rost is that its helium composition has been tested at 5.1 per cent. and furthermore, with 85 per cent. nitrogen, hydrocarbon levels are low. M3 Helium has identified an off-taker prepared to receive the raw gas from the well and management are currently assessing whether it will be economic to ship a 5 per cent. helium mix to the off-taker’s site. On the basis that it is, M3 Helium may be in a position to commence helium sales before the PSA has been connected.
Nebraska
Mendell Helium is also pleased to confirm that operations have commenced at the Jasper well. In line with M3 Helium’s policy of tight cost management, a small amount of casing was sourced from another discontinued operation which will further assist in what is already a low budget project.
At less than 2,000 feet in depth, testing of the Jasper well, including lease acquisition and drilling costs, is expected to cost less than US$100,000. M3 Helium continues to expect drilling to complete by the end of August 2025 and the results of this exercise will determine the location’s suitability for Bitcoin mining.
During the onsite preparations, the path of a fibre optic cable was found to be just a few yards from the lease boundary, which, if it can be easily accessed, will enhance the location’s appeal for a Bitcoin mining operation.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “In what has been a very busy week for M3 Helium, it is pleasing to report that M3 Helium remains on track for the two ongoing projects in Kansas and Nebraska. The logistical exercise of assembling the final surface equipment for Rost is coming together and timings for the Jasper well are just as planned. We are entering a very exciting time for M3 Helium, and I look forward to providing updates on the projects.”
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/s/a6a55a
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.
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in ten wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas. It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.
The tenth well, Brobee, is a disposal well that has been authorised at 5,000 barrels of water per day at 1,200 psi.
M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and is drilling a pilot well (Jasper). It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.
Important Notices
Mendell Helium plc (the “Company”) intends in the future to hold treasury reserves and surplus cash in bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board of Directors of the Company considers holding bitcoin to be in the best interests of the Company, the Board remains aware that the financial regulator in the UK (the “Financial Conduct Authority” or “FCA”) considers investment in bitcoin to be high risk. At the outset, it is important to note that an investment in the Company is not an investment in bitcoin, either directly or by proxy. However, the Board of Directors of the Company consider bitcoin to be an appropriate store of value and growth for the Company’s reserves and, accordingly, the Company may in the future be materially exposed to bitcoin. Such an approach is innovative, and the Board of Directors of the Company wish to be clear and transparent with prospective and actual investors in the Company on the Company’s position in this regard.
The Company is neither authorised nor regulated by the FCA and cryptocurrencies (such as bitcoin) are unregulated in the UK. As with most other investments, the value of bitcoin can go down as well as up, and therefore the value of bitcoin holdings can fluctuate. The Company may not be able to realise any future bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to bitcoin positions due to these market movements. As bitcoin is unregulated, the Company is not protected by the UK’s Financial Ombudsman Service or the Financial Services Compensation Scheme.
Nevertheless, the Board of Directors of the Company has taken the decision to invest in bitcoin, and in doing so is mindful of the special risks bitcoin may in the future present to the Company’s financial position. These risks include (but are not limited to): (i) the value of bitcoin can be highly volatile, with value dropping as quickly as it can rise. Investors in bitcoin must be prepared to lose all money invested in bitcoin; (ii) the bitcoin market is largely unregulated. There is a risk of losing money due to risks such as cyber-attacks, financial crime and counterparty failure; (iii) the Company may not be able to sell bitcoin at will. The ability to sell bitcoin depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and (iv) crypto assets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. In addition, there is a perception in some quarters that cyber-attacks are prominent which can lead to theft of holdings or ransom demands. The Board of Directors of the Company does not subscribe to such a negative view, especially in relation to bitcoin. However, prospective investors in the Company are encouraged to do their own research before investing.
Mendell Helium #MDH – Further developments in Bitcoin mining plans & update on Fort Dodge operations
Mendell Helium is pleased to announce that M3 Helium Corporation (“M3 Helium”) has secured a new land lease and will shortly commence drilling a new well in a location that may be suitable for Bitcoin mining. The location of M3 Helium’s new Jasper well in Nebraska has, based on historic tests at nearby wells, a possible high BTU biogenic methane resource at shallow depths.
The Company also provides an update on progress at Fort Dodge, Kansas including the forthcoming de-watering and production activities at M3 Helium’s Rost 1-26 well (“Rost”).
As 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 ten 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 a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.
Highlights
- Low cost air compression drilling of the Jasper well
- Historic tests evidence 94% methane with 950 BTU
- Location supports shallow wells in tightly spaced formation which can be connected for Bitcoin mining
- Discussions underway with partners and advisers to advance the project
- Additional land leased at Fort Dodge, Kansas for new wells analogous to Rost
Morrill, Nebraska
M3 Helium, has entered into a lease of land north of the town of Morrill in the state of Nebraska. With the area not currently being known for oil & gas activities, the lease has been secured at very low cost using funds extended to M3 Helium from the Company’s existing cash reserves. Furthermore, with lease acquisition and drilling costs expected to be less than US$100,000, this project represents an economical way to advance the Company’s initiative to supplement M3 Helium’s helium operations with a Bitcoin mining operation. As explained below, the Company believes that gas production from the Jasper well could be used to power a generator directly from the well head and without the need for processing.
Subject to initial testing and receipt of a permit, drilling of the Jasper well is expected to commence this week. With the well being less than 2,000 feet in depth, results are anticipated before the end of August 2025 and will quickly determine the location’s suitability for Bitcoin mining.
The project is located in the Denver Basin which, in Nebraska, is a largely untapped area in terms of natural gas discovery. Based on examining historical drilling data, the Company believes that the location of the Jasper well may be part of a regional gas accumulation, from an equivalent formation to the nearby Teapot Formation in the Powder River Basin in Wyoming. The formation is known locally as the Pierre shale, a thick sediment column spanning thousands of feet in western Nebraska. The Pierre shale is known to have a very high content of swelling clays and high-water saturation meaning it is not a conventional target for shale gas. Previously drilled wells in the nearby area have demonstrated that silty/sandy units exist throughout the Pierre shale column and represent multiple targets for gas production.
Results from a 2022 test nearby show a 94% methane content, suggesting a biogenic origin, with a high BTU (British thermal unit) of around 950. The gas was absent of hydrogen sulphide, and has negligible carbon dioxide or complex hydrocarbons, meaning it should be suitable for electric generation from the well head without the need for any processing.
As well as the region being an unconventional location for shale gas, there is no immediate gas infrastructure at the Jasper site. Mendell Helium believes this is the main reason why the Nebraska panhandle has been overlooked for gas production historically. But for this same reason, management believes it is a suitable location for Bitcoin mining, namely due to a potential low cost/high BTU methane supply.
Drilling technique and plans for Bitcoin mining
The Company plans to use a service rig equipped with a power swivel and air compression, which reduces mobilisation and operational costs whilst also minimising the environmental impact with a smaller surface footprint. With a target depth of less than 2,000 feet, total costs of drilling and testing, including acquiring the lease, are expected to be under US$100,000.
The well will not be fracked and so should flow under its own pressure. Management’s expectation is that wells in this region will be relatively low, but stable, producers of methane with a lengthy economic well life. Noting the characteristics of these wells, management believe that, if the pilot is successful, then each section (one square mile) could support up to 40 wells. Similar to the Kansas business environment, oil & gas regulations in Nebraska are pro-development, offering easier leasing and lower regulatory hurdles for energy projects.
Mendell Helium has already begun working with prospective joint venture partners and specialist advisers to develop a plan for Bitcoin mining. Given the potential proximity of wells to each other, the plan would be based on several wells being connected to supply a single generator with that generator supporting the power and cooling requirements for the specialist servers required.
As previously announced, the Company has an account with Bitgo Inc. in South Dakota which would be able to take secure custody of all Bitcoin that may be produced from M3 Helium’s planned Nebraska operations.
Biogenic methane
Natural gas may be formed thermogenically or biogenically. Most shale gas is derived from thermogenic pathways (time, heat and pressure) where organic matter called kerogen is converted into natural gas (and oil).
Biogenic methane, which makes up around 20 per cent of global natural gas supply, is derived from microbial digestion of organic matter and is often associated with shallow subsurface environments. Landfill gas is an example but often biogenic gas generation occurs over very broad regions. The Southeast Alberta gas field, which produces from upper Cretaceous formations, has yielded over 15 Tcf of natural gas in a century of production. Closer to Nebraska, the Bowdoin Dome is an area in north-central Montana known for its shallow, low-permeability, low-pressure natural gas reservoirs.
Fort Dodge, Kansas
Work is continuing in preparation for the dewatering and, thereafter, production activities at Rost. Sourcing the necessary surface equipment, and in particular the four water tanks which are positioned between Rost and the Brobee salt water disposal well (“Brobee SWD”), was a lengthier process than originally anticipated but delivery has now been scheduled for all necessary items and M3 Helium’s contractor has prepared the site and agreed trenching locations (for water pipes) with the land owner. Rost and Brobee SWD will be connected via the water tanks and with a triplex pump installed at Brobee SWD to ensure efficient water flows. Allowing for connection times, the M3 Helium now expects operations to commence in the first half of September 2025.
As with the earlier stages of work on Rost, this final stage is also coming in under budget with savings being realised on several of the bigger capital items.
In anticipation of a successful outcome at Rost, M3 Helium has begun to increase its land holdings in the Fort Dodge area to secure optimum drilling sites ahead of any competing interests that may develop. To date, two tracts of land have been leased which M3 Helium estimates would, together, sustain a further four new wells. M3 Helium continues to retain a landman to examine further leasing opportunities.
Unlike the Hugoton, the target reservoirs in Fort Dodge are not uniform across the region. Consequently, rather than the indiscriminating leasing of extensive areas, M3 Helium has adopted a policy of leasing only smaller locations that it has identified as being analogous to Rost. This is naturally a more time consuming process but will be a significantly lower cost as M3 Helium will only take leases of land that it intends to fully utilise.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “We indicated recently that M3 Helium’s Bitcoin mining plans had developed such that M3 Helium are looking at sites where known methane resources exist but the access to market is not available. This opportunity for the Jasper well in Nebraska is a culmination of that work.
“Historical tests evidence a high concentration of methane that can be utilised directly in a generator without the need for any processing. And the shallow formations mean that drilling and extraction costs are expected to be very low. The Jasper well represents the initial pilot in this region but if it is successful in bringing methane to surface – noting that with the low cost operations even small quantities will be economic – M3 Helium may have a significant resource play that could be the beginning of its Bitcoin mining operations.
“M3 Helium’s new interest in Nebraska does not detract from M3 Helium’s ongoing work in Kansas where M3 Helium will continue to assess the viability of applying the hydrocarbon byproduct from wells in the Fort Dodge area to Bitcoin mining to supplement M3 Helium’s helium production. With further leases in that area secured, we are increasingly optimistic about M3 Helium developing a wider operation in that area.”
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/s/a6a55a
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.
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website
|
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO
|
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray
|
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
|
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley
|
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in ten wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas. It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.
The tenth well, Brobee, is a disposal well that has been authorised at 5,000 barrels of water per day at 1,200 psi.
M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and is drilling a pilot well. It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.
Important Notices
Mendell Helium plc (the “Company”) intends in the future to hold treasury reserves and surplus cash in bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board of Directors of the Company considers holding bitcoin to be in the best interests of the Company, the Board remains aware that the financial regulator in the UK (the “Financial Conduct Authority” or “FCA”) considers investment in bitcoin to be high risk. At the outset, it is important to note that an investment in the Company is not an investment in bitcoin, either directly or by proxy. However, the Board of Directors of the Company consider bitcoin to be an appropriate store of value and growth for the Company’s reserves and, accordingly, the Company may in the future be materially exposed to bitcoin. Such an approach is innovative, and the Board of Directors of the Company wish to be clear and transparent with prospective and actual investors in the Company on the Company’s position in this regard.
The Company is neither authorised nor regulated by the FCA and cryptocurrencies (such as bitcoin) are unregulated in the UK. As with most other investments, the value of bitcoin can go down as well as up, and therefore the value of bitcoin holdings can fluctuate. The Company may not be able to realise any future bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to bitcoin positions due to these market movements. As bitcoin is unregulated, the Company is not protected by the UK’s Financial Ombudsman Service or the Financial Services Compensation Scheme.
Nevertheless, the Board of Directors of the Company has taken the decision to invest in bitcoin, and in doing so is mindful of the special risks bitcoin may in the future present to the Company’s financial position. These risks include (but are not limited to): (i) the value of bitcoin can be highly volatile, with value dropping as quickly as it can rise. Investors in bitcoin must be prepared to lose all money invested in bitcoin; (ii) the bitcoin market is largely unregulated. There is a risk of losing money due to risks such as cyber-attacks, financial crime and counterparty failure; (iii) the Company may not be able to sell bitcoin at will. The ability to sell bitcoin depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and (iv) crypto assets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. In addition, there is a perception in some quarters that cyber-attacks are prominent which can lead to theft of holdings or ransom demands. The Board of Directors of the Company does not subscribe to such a negative view, especially in relation to bitcoin. However, prospective investors in the Company are encouraged to do their own research before investing.
Mendell Helium #MDH – Preparation underway for Bitcoin mining
Mendell Helium is pleased to provide an update on both progress and additional plans to commence Bitcoin mining. In addition to conducting a feasibility study to determine whether excess methane produced from the wells could provide energy for a cryptocurrency / Bitcoin mining operation, the Company is also planning to complete the onboarding process through a digital assets custodian and incorporate a new subsidiary as the holding vehicle for the Company’s Bitcoin mining operations.
As 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 ten 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 a re-admission. As announced on June 23rd 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025
Bitcoin Mining Initiative
The Company’s Bitcoin mining initiative was first announced on 1 April 2025 when the Company outlined that it was working on a feasibility study to use the excess methane produced at either the Rost 1-26 well or future offset wells in the Fort Dodge area to provide energy for a cryptocurrency/Bitcoin mining operation. This work has advanced over the past month and Mendell Helium is currently modelling different opportunities to determine the optimum location for its first Bitcoin mining operation. As well as Fort Dodge, the Company is also examining trapped gas assets in other locations – being methane resources which are not within gathering systems and therefore which could provide a low cost energy for Bitcoin mining. In anticipation of commencing these operations, Mendell Helium is pleased to report two preparatory steps.
Custodian appointed
The Company has successfully completed the onboarding process with Bitgo Inc. (“Bitgo”) and its account can be configured to include multiple wallets to receive Bitcoin that may be successfully mined by the Company in the future. Mendell Helium’s account is serviced by Bitgo’s South Dakota facility, the location being chosen in anticipation of its impending US-based Bitcoin mining operations. The account includes full trading capabilities and secure storage in cold wallets.
BitGo was founded in 2013 and launched BitGo Trust Company in 2018, providing fully regulated, qualified cold storage. In 2020, BitGo launched BitGo Prime, which allows its clients to trade, borrow and lend. It services more than 2,000 institutional clients in over 90 countries and processes approximately 8% of all global Bitcoin transactions by value.
New subsidiary incorporated
Mendell Helium has also established a new wholly owned subsidiary, Mendell Digital LLC, a Kansas registered entity that will work alongside M3 Helium and be the vehicle for the Company’s Bitcoin mining operations.
Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: “I’m pleased to report that our plans for Bitcoin mining since publishing our Bitcoin treasury management policy are gathering pace. As well as Fort Dodge, where we anticipate having excess methane as part of our helium production operations, we are also looking at more focused sites where known methane resources exist but the access to market is not available. These sites could potentially provide very low cost methane and house generators and servers at the wellhead.”
“We are also pleased to have established an account with Bitgo which can be configured to receive any Bitcoin that we successfully produce and which includes a trading facility. Furthermore the establishment of our new operating subsidiary, Mendell Digital LLC, will demonstrate to investors that we expect operations to commence in the coming months.”
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/s/a6a55a
Enquiries:
| Investor questions on this announcement
We encourage all investors to share questions on this announcement via our investor website |
https://mendellhelium.com/s/a6a55a |
| Mendell Helium plc
Nick Tulloch, CEO |
Via our website
investors@mendellhelium.com |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser)
Ludovico Lazzaretti / Liam Murray |
Tel: +44 (0) 20 7213 0880 |
| SI Capital Limited (Broker)
Nick Emerson |
Tel: +44 (0) 1483 413500 |
| Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney |
Tel: +44 (0) 203 3650 3650/51
|
| Fortified Securities
Guy Wheatley |
Tel: +44 (0) 203 4117773
|
| Brand Communications (Public & Investor Relations)
Alan Green |
Tel: +44 (0) 7976 431608
|
Overview of M3 Helium
Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
M3 Helium has interests in ten wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production. Eight of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas. It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.
The tenth well, Brobee, is a disposal well that has been authroised at 5,000 barrels of water per day at 1,200 psi.