Mendell Helium Secures £5M Raise & Eyes 2027 Dividend After Strong Rost Production Success
Why It Matters
The raise gives Mendell the capital to scale helium output ahead of a tightening global supply, potentially delivering shareholder dividends and establishing a rare‑earth gas play in a high‑margin market.
Key Takeaways
- •Mendell Helium raised £5 million to fund multi‑well expansion.
- •Ross well produces 250 MCF/day, yielding ~£1 m annual revenue.
- •New capital enables four‑well drilling package, cutting rig mobilization costs.
- •Income fund holds 40% of raise, targeting 2027 dividend.
- •Helium market tightness may boost prices, supporting cash‑flow outlook.
Summary
Mendell Helium announced a £5 million equity raise and completed the M3 Helium option, positioning the company to accelerate its helium production programme and target a dividend by 2027.
The pilot Ross well is delivering 250 MCF of gas per day with a 5.1% helium concentration, translating to roughly £1 million of annual revenue at $300 per MCF. The new funding will support drilling of Ross 2, the Snow White JV and a four‑well package, allowing a single rig mobilization and significant cost efficiencies.
CEO Nick Tullock highlighted that an income fund contributed 40% of the raise and that the macro environment—about one‑third of global helium offline—supports higher prices. He noted Ross 2’s wider‑casing design and early mass‑spectrometer readings mirroring Ross, and described Snow White’s pipeline access as a low‑risk, high‑value opportunity.
If the wells meet projected outputs, Mendell could become cash‑generative and deliver the promised 2027 dividend, offering small‑cap investors exposure to a tightening helium market and a scalable production model.
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