Announcement PDF RNS Number : 3725I Mendell Helium PLC 16 June 2026 Mendell Helium plc ("Mendell Helium" or the "Company") Admission to Trading on AIM and First Day of Dealings Mendell Helium, the helium production company with operations in Kansas, is pleased to announce that the admission of its ordinary shares of 1 pence each ("Ordinary Shares") to trading on the AIM Market ("AIM"), a market operated by the London Stock Exchange, will take place today ("Admission"). Dealings in the Ordinary Shares on AIM will commence at 8:00 a.m. today under the TIDM "MDH" and the ISIN GB00BLD3FF28. Additionally, the Company's Ordinary Shares will be withdrawn from trading on the Access Segment of the Aquis Stock Exchange Growth Market with effect from 8.00 a.m. 30 June 2026, in accordance with AQSE Rule 5.3. Mendell Helium is a helium producer in Kansas, USA where it operates in Fort Dodge, just to the east of Dodge City, and in the Hugoton gas field in South-Western Kansas, one of the largest natural gas fields in North America. It is Fort Dodge where the Company focuses its activities and where it plans up to four further wells. With a 5.1% helium composition, the Company's flagship well, Rost 1-26, has a recorded flow rate of 250 Mcf per day. This has become the blueprint for future expansion in the Fort Dodge region. The Company's Admission Document and information required pursuant to AIM Rule 26 is available on the Company's website at https://mendellhelium.com. Part 1 of the Admission Document is set out in the Appendix below. Nick Tulloch, CEO of Mendell Helium, said: "We are delighted to begin trading on AIM today. As we advance our significant development programme in Fort Dodge, Kansas, this marks the right moment to join a globally recognised growth market that aligns with our long-term ambitions. "We are supported by an exceptionally committed and talented team, and while there is considerable work ahead as we execute our plans, the foundations for growth are firmly in place. The success of the Rost 1-26 well has validated our strategy, and our extensive land position provides a strong platform from which to expand our operations. "I would like to thank our shareholders and advisers for their continued support and confidence in Mendell Helium. As we enter this exciting new phase of growth, we look forward to keeping the market updated as our programme of new wells progresses over the coming months." 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 Fortified Securities Guy Wheatley Tel: +44 (0) 203 4117773 OAK Securities Jerry Keen / Calvin Man Tel: +44 (0) 20 3973 3678 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 Mendell Helium Mendell Helium is a helium producer in Kansas, USA where it operates through its wholly owned subsidiary M3 Helium. 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. Water removed from Rost 1-26 is delivered to Brobee, a nearby disposal well that has been permitted at 10,000 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 2025 was 250 Mcf per day equating to approximately $1.4 million of helium per year (at $300/Mcf helium). M3 Helium has subsequently drilled a second well, Rost 2-26, which is currently being completed. It also owns additional leases in the Fort Dodge area capable of supporting up to eight new production wells. It has also agreed a joint venture with Ritchie Exploration, Inc. to recomplete the Schneweis Ventures 13A, a well with a drill stem test of over 10,000 Mcf per day and a historic flow rate of 300 Mcf per day. At the Rost wells in Fort Dodge, M3 Helium treats the raw gas on site to concentrate the helium and has leased two tube trailers which it uses for deliveries to its offtaker. M3 Helium also has interests in five producing wells (Peyton, Smith, Nilson, Bearman and Dimmitt) 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. Appendix: 1. Introduction Mendell Helium plc ("Mendell" or the "Company") (formerly Voyager Life plc) was incorporated as a private limited company on 12 November 2020 under the laws of Scotland with company number SC680788. The Company re- registered as a public limited company on 7 June 2021 and listed on the Access segment of AQSE on 30 June 2021. On 18 May 2026, Mendell acquired the entire issued share capital of M3 Helium Corporation ("M3 Helium"), a helium producer and exploration company based in Kansas, USA. M3 Helium was incorporated to pursue helium production opportunities. It has interests in twelve wells, of which six (Rost 1-26, Peyton 21-1, Nilson 1 Unit 2-22, Smith, Bearman "A"1 and Dimitt 1) are in production. The Company issued 57,611,552 new Ordinary Shares to the Sellers in consideration for the transfer to the Company of the entire issued share capital of M3 Helium. Helium (He) is an inert, non-renewable gas created by the natural decay of radioactive elements and primarily produced as a byproduct of natural gas production. Due to its unique physical properties, including low boiling point and non-reactivity, helium is a critical input across a range of advanced industries such as medical imaging, semiconductors, aerospace and fibre optics. Global helium demand was estimated at approximately 6 billion cubic feet (Bscf) in 2023 and is projected to grow to 8.7 Bscf by 2030. Since entering into the M3 Helium Option in 2024, the Company has completed a number of fundraisings, and, in each case, has applied the net proceeds towards the continued development of M3 Helium's business by providing loans to M3 Helium. At the date of the Acquisition, the aggregate amount outstanding under these loans was US$2.35 million including accrued interest and, following completion of the Acquisition, they are treated as intra-group loans. The Directors considered this strategy to be of benefit to Shareholders given the significant change in M3 Helium's business since the M3 Helium Option was entered into, and specifically the success of the helium production operations at Fort Dodge. The acquisition of M3 Helium represented a significant strategic shift and is expected to provide the Company with access to the growing helium exploration and production sector. The number of Ordinary Shares in issue as at the date of this Document is 340,761,938 and the number of outstanding options, warrants and CLNs to subscribe for new Ordinary Shares is 34,750,618, 109,658,799 and 9,333,333 respectively. The Directors believe that Admission to AIM will better position the Company to pursue growth opportunities within the helium sector, while providing greater access to capital and an enhanced profile among institutional investors. It is expected that Admission will become effective and dealings in the Share Capital will commence on AIM on or around 16 June 2026. Following Admission to AIM, the Company will cancel the trading of its Ordinary Shares on AQSE. The last day of dealings on AQSE is expected to be 29 June 2026, with the AQSE Cancellation becoming effective at 8.00 a.m. on 30 June 2026. You should read the whole of this Admission Document and not just rely upon the information contained in this Part I. In particular, you should carefully consider the Risk Factors set out in Part II of this Admission Document. Your attention is also drawn to the information set out in Parts III to VII of this Admission Document. 2. Investment Case The Directors of Mendell believe that the Group's key strengths can be summarised as follows: Innovative technique for accessing gas reservoirs M3 Helium's primary operations are in Fort Dodge, Kansas where it employed an unconventional technique to significantly de-water a previously drilled but shut in gas well to bring it back to production. This well is Rost 1 where, during the course of 2025, M3 Helium employed an electric submersible pump and completed a nearby disposal well to move, initially, around 1,800 barrels of water per day. These operations were successful and commercial production of helium commenced in November 2025, albeit the well has not produced consistently since then, due to equipment maintenance and development of surface facilities. Rost 1 is an important milestone for M3 Helium as the well has been tested at a helium composition of 5.1 per cent. and a drill stem test indicating flow rates of up to 2,940 MSCF/D. In November 2025 flow rates were measured at 250 MSCF/D. The Fort Dodge region has existing oil and gas operations with several wells showing the presence of helium. However, the Morrow Sands formation, which the Company believes is the optimum production zone, requires significant de-watering to generate production. This has deterred other operators but, through Rost 1, Mendell Helium has demonstrated that it has found a commercial solution to access what it believes is a reservoir rich in helium. Rost 1 is connected to a nearby salt water disposal well, Brobee, where water that is pumped from Rost 1 is delivered. This is an essential part of the operations as trucking water from site would be uneconomic. The water disposal capacity available at Brobee is expected to be materially greater than that required under current production for Rost 1. As a result, Brobee may be further modified to accommodate water production from offset wells in the Fort Dodge area, including through access to deeper formations. Furthermore, the Directors believe that this dewatering approach that has been employed at Rost 1 can be repeated across multiple other locations. Low risk producing asset base M3 Helium currently has six producing wells. Five of these producing wells are within the Hugoton gas field, one of the largest natural gas fields in North America - the fifth well, Smith C-2, is shut-in pending the drilling of a nearby disposal well. These wells benefit from proximity to established midstream infrastructure, including a gas gathering network and the Jayhawk gas processing plant, enabling production to be tied directly into that infrastructure. The Jayhawk gas processing plant is a major natural gas and helium processing facility located near Ulysses, Kansas, and is a key piece of midstream infrastructure in the Hugoton gas field using cryogenic processes and purification methods including pressure swing adsorption ("PSA"). The plant processes raw natural gas to extract methane, helium, nitrogen, and natural gas liquids, with some of its operations directly connected to the Federal Helium Pipeline. Although the Company's focus in the near term will be on the development of the Fort Dodge region, its Hugoton operations provide a low maintenance and long term production base to its operations. In time these may be further developed through the addition of disposal wells to increase water removal and thereby gas production but there are no immediate plans in this regard. Access to infrastructure It is a fundamental part of the Company's strategy that its production wells have access to the market for helium. The helium market is immature and most sales are through bilateral agreements and not on the spot market. Furthermore, helium is challenging to contain and transport. Helium is often extracted as a minority part of a gas mixture and needs to be separated and purified. All of M3 Helium's producing wells in the Hugoton are connected to the gathering system for the Jayhawk processing plant. In Fort Dodge, at present, helium production is being delivered by tube trailer under a tolling agreement. Over the medium term, the Directors consider that the success of Rost 1, and potentially other producing wells in the Fort Dodge area, may support the economic case for the construction of a pipeline connection to nearby gas gathering infrastructure. Unprecedented short supply and increasing demand underpinning strong pricing Helium is a vital element for a number of major technologies utilised on a daily basis, however the ability of existing and planned sources of helium supply to meet future demand is highly uncertain. A number of factors have come together to create a precarious situation, starting with the 1996 decision by the US government to sell off nearly its entire stockpile of helium, stored in a depleted natural gas field in Amarillo, Texas. This created an increase in supply and prices of helium have arguably been artificially depressed for much of the last decade. Until a few years ago, this facility was the only place in the world to store helium. In addition to the depletion of the US government helium reserve, lower oil and gas prices have caused the cancellation or significant delay of a number of major energy projects. Helium has historically been produced as a by-product in a few large conventional oil & gas projects, which happened to have a high helium content. Many projects of this type with helium potential have been cancelled in the last few years, as they have been replaced by spending on oil & gas production from shale, which cannot generally trap or produce significant quantities of helium. As at the date of this Document, there are insufficient major projects under development in North America that could fully replace the loss of helium supply from US government stockpile sales. Recent shortages have made existing helium demand less elastic and quickly-maturing new sources of helium demand could increase the rate of demand growth. From new low-cost reusable rockets for space launches, to the advancement of nuclear fusion, to autonomous floating Internet infrastructure, to new therapies targeting cancer cells with ion beams, helium's unique physical properties make it increasingly vital to present and future technologies. Five major fields/facilities supply around 80 per cent. of global upstream helium. A similar number of large players control the distribution, which is often executed on privately negotiated contracts. Data on current supply/demand/prices are therefore not widely disclosed and create uncertainty around precise estimates. Furthermore, existing helium supply is structurally fragile, as an outage of one of the (limited number of) suppliers could have disproportionate effects. The helium market is also influenced by geopolitical factors. Qatar is one of the biggest suppliers globally and deliveries have been disrupted as a result of the 2026 Iran war in the Middle East at the date of this Document. Russia's significant helium reserves have been constrained by ongoing sanctions. The Company expects a continued increase in demand underpinned by the lack of substitutes for helium in its main markets of MRIs and high-end science/engineering, including rapid growth in state-funded/private space exploration, pressure/purge applications and rising demand for semiconductors. A shortage in the early part of the last decade forced price spikes incentivising new supply (based on LNG plant start-ups), driving prices back to more normal levels. The Directors believe current supply constraints should continue to support pricing and may support marked increases. Further detail on the global helium market can be found in paragraph 5 of Part I of this Document. Support from local investors On 9 December 2025, the Company announced that M3 Helium was approached by a group of US based investors (the "Investor Group") who expressed interest in supporting its expansion of Fort Dodge. Direct investments in oil & gas wells are common in the US and, if structured correctly, can attract certain tax benefits for US investors. For the Company, a direct investment at the asset level does not result in equity dilution for shareholders and provides a means of accelerating development plans, albeit with economic interests in individual wells shared with co-investors. As announced on 16 April 2026, the Company entered into a series of binding agreements with Rixford in relation to the development of Rost Twin: - Rixford is funding 35 per cent. of the expected cost of the Rost Twin and the upgrade of the Brobee salt water disposal well, being US$372,000 in aggregate. - M3 Helium act as operator of the Rost Twin. - Production from the Rost Twin will be processed at M3 Helium's facility at Rost 1, in return for which M3 Helium will earn a processing fee equal to 20 per cent. of gross production from the Rost Twin. - Rixford has an option to acquire a 50 per cent. interest in the processing facility at development cost and, if it elects to do so the processing fee would cease. - Rixford has been granted a right of first refusal to participate in up to five future wells drilled by M3 Helium or its affiliates in Kansas on substantially the same terms as the Rost Agreements. - Pursuant to the Rost Agreements, Rixford has been granted a 35 per cent. working interest in the Rost Twin well. M3 Helium has drilled the Rost Twin with a 7 inch casing (as opposed to the Rost 1 well which was drilled using a 5.5 inch casing). The larger casing will increase volume by approximately 62 per cent. enabling greater water removal. Evidence both from Rost 1 and also analogous wells in the same formation indicate a correlation between water removal and gas production. M3 Helium therefore believes this wider casing, coupled with an electric submersible pump, could enable the Rost Twin to be more productive than Rost 1. Development of the Fort Dodge region M3 Helium has been mapping out the formation to which the Rost 1 well has access. M3 Helium has leased further land (Bleumer and Enlow Farms) for possible future wells and it expects to continue to lease additional suitable locations as part of the Company's longer term strategy. As part of this strategy, M3 Helium has also been examining the location of gas pipelines. Although there is no gathering system directly proximate to Rost 1, there are nearby options that, should M3 Helium have several wells in production, may be economic to connect to in the future. Delivery of production via a pipeline negates the need for surface purification facilities and could enable sales of other components in the produced gases as well as helium. Partnership with a Kansas-based oil & gas company The Company announced on 25 March 2026 that M3 Helium has entered into a well workover agreement with Ritchie, a family-owned oil and gas operator headquartered in Wichita, Kansas, to re-complete the Schneweis well in the Fort Dodge region of Kansas, a well located around four miles south of Rost 1. M3 Helium believes that the Rost 1 de-watering technique could be employed elsewhere in the Fort Dodge region and, towards the end of 2025, it commenced discussions with Ritchie to recomplete Schneweis. A significant advantage of this method of expansion is that existing wells have evidenced prior flow rates and gas compositions. The parties have entered into a binding contract and work on Schneweis commenced in May 2026 following design and approval of the new disposal well that will be required for the project. Schneweis has previously produced consistently over 300 MSCF/D before production was shut down due to significant water production. As with Rost 1 and the Rost Twin, the target formation is the Morrow Sands. With a sustained de-watering programme and noting that Schneweis' drill stem test in 2022 exceeded 10,000 MSCF/D, the Company believes there is potential to increase production at Schneweis from historic levels. Helium composition has been measured at 1.39 per cent. but, unlike Rost 1, there is a higher methane content of 70.06 per cent. Significantly Schneweis is connected to a pipeline owned by Ritchie and it is envisaged that all produced gas from the well will be delivered to that pipeline with no requirement for prior treatment. Accordingly, the economics of the well will include the sale of hydrocarbons as well as helium. The Company will fund the new disposal well and recompletion of Schneweis to earn an initial 85 per cent. net profit interest in Schneweis. Once Mendell Helium has recovered 110 per cent. of its investment, its net profit interest falls to 70 per cent. Ritchie is entitled to bring the arrangement between the parties to an equal (50 per cent.) net profit interest by reimbursing the Company for 50 per cent. of the Schneweis recompletion costs. If the Schneweis project is successful, the Company believes that there may be further opportunities to collaborate with Ritchie and other local operators to recomplete existing oil and gas wells. Experienced and Balanced Management Team The Directors have considerable expertise in the helium sector, wider oil and gas industry and the UK public markets. M3 Helium founder Paul Mendell has enjoyed a long and successful career developing natural resources projects in the US, and has developed a significant network within the helium space. Nick Tulloch previously served as adviser to, and then Finance Director and Chief Executive Officer of, UK-listed natural resources developer Highlands Natural Resources plc (now Chill Brands Group plc) where Mr Mendell was chairman. Eric Boyle was a co-founder of Highlands Natural Resources plc and retained a role with that company for around six years. John Brown has more than 25 years of international experience in oil and gas and related industries, working for numerous UK listed companies including San Leon Energy plc, Gulf Marine Services plc, Bowleven plc and Pittencrieff Resources plc. Through Mr Mendell's geological expertise, Mr Tulloch's legal qualification, Mr Brown formerly working as a Chartered Accountant and Mr Boyle's career in asset management, the Directors therefore believe that this mix of relevant technical, operational and financial experience means that Mendell Helium's Board is ideally suited to deliver value for shareholders. Furthermore, the Directors have assembled a senior management team with extensive experience of the oil & gas industry in Kansas, thereby providing local knowledge and connections. 3. Strategy During 2025 M3 Helium re-completed Rost 1 in Fort Dodge, Kansas. With a recorded flow rate of 250 Mcf/day and a helium composition of 5.1 per cent. within the gas stream, the operation was successful and M3 Helium has more recently drilled a twin well 330 feet from Rost 1 - the Rost Twin. In both cases, a key factor in enabling the wells to produce is the ability to remove, and dispose of high volumes of water in the well - a technique that M3 Helium achieves with the use of a electric submersible pump ("ESP"), capable of lifting around 2,000 barrels of water per day, and injecting the displaced water into a nearby disposal well. Current Project - Rost Twin The Rost Twin was drilled with a larger 7-inch casing based on M3 Helium's theory, supported both by its experience with Rost 1 and also analogous wells in Oklahoma, that greater water removal enables higher gas production. Drilling of this larger well has been successful, with this part of the project being both on budget and on time, and accordingly M3 Helium expects 7 inch cased wells to be used in its forthcoming development of the Fort Dodge region. During drilling of the Rost Twin, M3 Helium employed a mass spectrometer, coupled with gas detection equipment, to assess the prospective hydrocarbon gases, hydrogen and helium in the well. Encouragingly, the mass spectrometer recorded several shows of helium in different potential production zones within the well. The helium was detected with low hydrocarbon signatures supporting M3 Helium's theory that the helium-rich sands from which Rost 1 produces extend to the Rost Twin. A completion rig is on site at the Rost Twin and it is intended that the well will be perforated to maximise benefit from these helium zones. Thereafter, the ESP previously used on Rost 1 will be installed in the Rost Twin to commence the de-watering process. When the same process was applied to Rost 1, there were gas shows at a very early stage and gas production increased steadily, in line with water production, until a mature flow rate was achieved within three months of commencement. As part of the completion of the Rost Twin, the neighbouring Brobee salt water disposal well ("Brobee SWD") will be upgraded to take water from the two production wells. A permit has been applied for and work began in May 2026. M3 Helium has also entered into the Rost Agreements with Rixford in relation to the development of the Rost Twin well. Next Project - Schneweis The Schneweis Ventures 13 well ("Schneweis"), operated by Ritchie, has previously produced consistently over 300 Mcf/day before production was shut down due to significant water production. As with Rost 1 and Rost Twin, the target formation is the Morrow Sands. With a sustained de-watering programme and noting that Schneweis' drill stem test in 2022 exceeded 10,000 Mcf/day, Mendell Helium believes there is potential to increase production from historic levels. Helium composition at Schneweis has been measured at 1.39 per cent. but, unlike Rost 1, there is a higher methane content of 70.06 per cent. Significantly, Schneweis is connected to a pipeline owned by Ritchie and it is envisaged that all produced gas from the well will be delivered to that pipeline with no requirement for prior treatment. Accordingly, the economics of the well will include the sale of hydrocarbons as well as helium. The Company will fund the new disposal well and recompletion of Schneweis to earn an initial 85 per cent. net profit interest in the project. Once the Company has recovered 110 per cent. of its investment, its net profit interest falls to 70 per cent. Ritchie is entitled to bring the arrangement between the parties to an equal (50 per cent.) net profit interest by reimbursing M3 Helium for 50 per cent. of the project costs. Next steps Based on the success so far of Rost 1 and the Rost Twin, M3 Helium intends to roll out a development of helium production zones in the Fort Dodge region. The Fundraise and completion of the Acquisition enabled a significant acceleration of this development plan which has two aspects: 1. Drilling new 7 inch cased wells on land already leased by M3 Helium, specifically the Enlow and Bleumer leases; and 2. Re-completing existing third party wells that were shut in due to the presence of water, starting with Schneweis, in joint venture with Ritchie. Alongside the above plans, M3 Helium intends to continue to lease additional land in Fort Dodge to continue to develop opportunities for further new production wells. The production zone that M3 Helium is targeting is known locally as the Morrow Sands, both a narrow and thin formation around 5,000 feet from surface. The management team has carried out considerable work in mapping out the Morrow Sands in Fort Dodge and both existing and future leases of land are typically small tranches designed to access this formation. Based on its experience at Rost 1 and supported by data from analogous wells in Oklahoma, the management team believes that the prospectivity of this region may represent a potentially significant opportunity for the Company. As set out above, the difficulty in accessing the formation coupled with the need for a high volume de-watering process, provides some protection from competing operators. The Company raised gross proceeds of £5,000,000 from the Fundraise. Broker fees relating to the Fundraise are estimated to be £355,000, excluding VAT. The total costs and expenses of, and incidental to, Admission are estimated to be approximately £556,000, excluding VAT. The Company intends to use the net proceeds to expand its operations in the Fort Dodge area, by leasing additional land (of which it has already identified suitable locations), drilling and recompleting production and water disposal wells and developing further helium purification facilities and general working capital purposes. Mendell Helium has estimated the following costs for the advancement of its operations at Fort Dodge: Use of Proceeds Indicative cost Production well Includes drilling, completion and associated surface infrastructure £694,074 ($937,000) Disposal well Includes access to Arbuckle formation and triplex pump installation £315,555 ($426,000) Helium purification surface works Includes installation of condition unit, acquisition of membranes and PSA for helium concentration, set up of ground storage for helium and lease/purchase of Bauer compressor £1,102,963 ($1,489,000) It is important to note that each disposal well and helium purification plant are sized to accommodate up to four production wells. Furthermore, the Company has identified mater