Wow Fair Play18 Aug 2025 07:16
This Mendell Helium (and M3 Helium) update is actually quite punchy relative to its tiny market cap. Here’s why:
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1. Nebraska “Jasper” pilot well
• Drilling starts this week, results due end of August 2025 – so a very near-term catalyst.
• Costs < $100k for lease + drilling. That’s peanuts in O&G terms, but if it flows, it proves the model.
• Historic nearby test = 94% methane, 950 BTU, no impurities → ideal for direct power generation on site, no midstream needed.
• Low cost + no processing = perfect for Bitcoin mining, since flaring-quality gas can be monetised.
👉 If it works, management suggests 40 wells per square mile could be drilled. That’s a scalable BTC mining concept powered by stranded gas.
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2. Fort Dodge (Kansas) progress
• Rost well prep done, water infrastructure going in, production targeted for Sept 2025.
• Costs coming in under budget, and they’re adding land leases for multiple additional wells.
• So two active fronts: Nebraska BTC pilot + Kansas helium/methane production.
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3. Strategic angle
• Management openly positioning Bitcoin mining as a co-product alongside helium.
• They’ve got a BitGo custody account set up already – so if methane flows, BTC revenue could start quickly.
• This is smart because helium is high-value but tricky/slow; BTC monetises stranded gas immediately.
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4. Market cap vs news
• Mendell Helium’s market cap is tiny (c. £3–4m).
• They’re talking about:
• Near-term production from Rost (Kansas)
• A low-cost pilot in Nebraska with results due in weeks
• A scalable BTC mining concept if the pilot hits
• Option on 10 wells (M3 Helium) with further land being leased
Relative to the cap, the news is very material:
• If Jasper flows even modestly and they prove BTC mining on-site, it could justify multiples of the current valuation (even just on BTC optionality).
• If Rost comes online in Sept with commercial helium/gas, that’s another de-risking milestone.
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✅ Bottom line:
This is good news vs market cap. The market usually ignores microcap RNS until flow rates or BTC mined are announced, but with a £3–4m cap, even a modest well + BTC pilot could re-rate it significantly. Two near-term catalysts (Jasper results late Aug, Rost production Sept) line up well.
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