Helix Exploration has agreed to acquire Montana-based drilling contractor Treasure State Drilling LLC in an all-share transaction valued at US$600,000, with no cash changing hands. The deal gives Helix full ownership of the rig that has drilled all four of its existing production wells at the Rudyard Helium Project in northern Montana.
The acquisition price represents a 37 percent discount to an independent equipment appraisal of US$955,900.
Helix agrees to buy Treasure State Drilling in all-share deal
Helix Exploration has signed a purchase and sale agreement to acquire 100 percent of the membership interests of Treasure State Drilling LLC. The total consideration of US$600,000 will be satisfied entirely through the issuance of new ordinary shares of 1 pence each in Helix — meaning no cash leaves the company at any point.
The number of shares issued will be determined by the 20-day volume-weighted average price of Helix shares, calculated from the date the agreement was signed. Sellers have also agreed to settle any existing liabilities owed by TSD before closing.
Why Helix pursued the acquisition: cost control and rig availability
The strategic logic is straightforward. In contract drilling, operators pay a day rate for rig usage whether the rig is actively drilling, on standby, or rigging up and down. Owning TSD outright removes that cost layer entirely on all future Rudyard wells.
Mobilization and demobilization costs disappear too. Moving a drilling rig involves significant expenditure in logistics, transport, and associated downtime — none of which Helix will face, since TSD’s rig is already positioned on site at Rudyard.
Rig availability was another consideration. In active basins, rigs are frequently committed to other operators, forcing companies to wait months before drilling can begin. Ownership eliminates that dependency. Helix can now initiate drilling on its own schedule, unconstrained by a contracted rig’s calendar. The US$600,000 price also sits 37 percent below the independent equipment appraisal of US$955,900 conducted by Enneberg Excavation LLC, a qualified engineering firm with more than 22 years of Montana oilfield operations experience.
What the deal delivers: rig specifications and operational readiness
The primary asset is a Cardwell KB-150 drilling rig, rated to 8,000 feet depth — sufficient to reach Rudyard’s Souris and Red River target formations, which sit comfortably within that range.
The full package includes an 800 HP Emsco mud pump, two Bomco F-1000 mud pumps, dual generator sets providing more than 1,300 kW of on-site power, and more than 22,000 feet of drill pipe inventory across multiple string sizes. Support vehicles and a Western Star semi winch truck are also included, along with a comprehensive complement of ancillary drilling equipment.
TSD’s crew has drilled all four of Helix’s existing Rudyard production wells. That familiarity with local wellbore conditions and formation characteristics is a genuine practical advantage — it reduces the uncertainty typically associated with bringing a new contractor onto a project. The rig is immediately deployable for Helix’s next well, with no transport or rigging costs required.
Potential third-party contract drilling as an additional revenue stream
Following closing, TSD will operate as a wholly owned but commercially independent subsidiary of Helix. That structure allows TSD to offer its rig and crew to other area operators on a conventional contract drilling basis, separate from Helix’s own program.
The directors believe TSD’s rig is currently the only drilling rig available in north-central Montana — a region with numerous oil and gas operators and a growing base of hydrocarbon prospects. That scarcity, combined with an experienced local crew, could position TSD to attract third-party work when the rig is not needed for Helix’s own drilling activity.
No third-party contracts have been signed. No revenue from external activity should be assumed at this stage. The board has been explicit on that point.
Background: Helix Exploration and the Rudyard Helium Project
Helix Exploration is a helium-focused exploration and development company listed on a UK exchange. Its primary asset is the Rudyard Helium Project in northern Montana, where four production wells have already been drilled. North-central Montana is home to numerous oil and gas operators and a diverse range of hydrocarbon prospects, including smaller oil fields with potential for further development.
The acquisition remains subject to the satisfaction or waiver of standard closing conditions. In short: Helix gains full ownership of a proven, on-site drilling rig at a meaningful discount to appraised value, eliminates recurring contract drilling costs on future wells, and secures the option — though not the certainty — of additional revenue through third-party contract work.
