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Highlights

  • Helix Exploration becomes Montana’s first helium producer with production underway at the Rudyard Project.
  • Initial helium is processed from three wells, with plans to integrate the Inez well after testing.
  • The company will engage with potential offtake distributors to secure short- and long-term contracts.

Helix Exploration PLC (LSE:HEX) has commenced helium production at its flagship Rudyard Project, making it the first helium producer in the state of Montana. The move positions the company at the forefront of helium supply in the region and marks a significant operational milestone for both Helix and the local energy sector. Production initially draws from three wells, with additional capacity to be added once testing at the Inez well is completed.

First Helium Production in Montana

The Rudyard Project has successfully connected three wells—Linda, Weil, and Darwin—to the gathering system. These wells feed helium gas into the PSA plant, which processes the gas for distribution. Full production capacity will be scaled up over the coming months as the on-site team optimises processes and stabilises operations. The Inez well will be integrated into the system once current testing and retrieval operations are completed.

Offtake Negotiations Begin

With helium production now active, Helix Exploration is inviting potential offtake distributors to the Rudyard site. The company aims to finalise a combination of short- and long-term agreements to secure optimal pricing and revenue. The confirmed production provides a basis of certainty for potential partners.

Inez Well Update

During re-entry operations at the Inez well, parts of the drill string snapped, requiring retrieval before production can begin. Helix clarified that this incident does not affect helium reserves or future hydrogen potential at the well. The company’s focus remains on current production and finalising offtake agreements, after which additional testing and hydrogen discussions will resume.

Market Performance

Shares of Helix Exploration were trading at GBX 27.39 on 23 February, down 3.91% on the day. Over the past year, the stock has gained 73.34%, with a six-month increase of 7.40%.

The commencement of helium production at the Rudyard Project establishes Helix Exploration as Montana’s first helium producer. With ongoing offtake negotiations and plans to integrate additional wells, the company is poised to expand production and engage with the market to secure both short- and long-term supply contracts.

Frequently Asked Questions (FAQs)

  1. Which wells are currently producing helium at Rudyard?
    The Linda, Weil, and Darwin wells are currently connected and producing helium, with the Inez well to be added after testing.
  2. How is Helix Exploration planning to sell its helium?
    The company is meeting potential offtake distributors to establish a mix of short- and long-term supply agreements.
  3. Did the Inez well incident affect helium production?
    No, the drill string issue at Inez does not impact helium reserves or ongoing production from the other three wells.