Mendell Helium has confirmed a farm-in deal with Scout Energy in Kansas which enables the Scotland-based company to cost effectively scale its business.
Under the agreement involving the 161,280-acre site in the near-100-year-old Hugoton gas field, Mendell Helium has full access to Scout’s gathering system and Jayhawk processing plant at a fixed helium price, as well as first refusal on Scout’s 1 million acres in Kansas, according to CEO Nick Tulloch. No payments are due until 31st March 2025 or when drilling starts.
Jayhawk processes 4% of the world’s helium, as well as nitrogen, methane and natural gas liquids, and Scout is the second largest helium producer in the US.
“We have an outstanding partner and an outstanding opportunity,” said Tulloch.
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