Helix Exploration has commenced gas production at its flagship Rudyard Project, becoming the first helium producer in the state of Montana.
The company has connected three wells — Linda, Weil and Darwin — to the gathering system, providing initial throughput to the on-site PSA plant.
A fourth well, Inez, will be integrated into production capacity upon completion of testing.
Production is expected to scale towards full capacity over the coming months as the on-site team consolidates processes around the PSA plant.
“Helix is elated that it can claim to be the first Helium producer in the state of Montana. I am extremely proud of our team and the way that we have executed progressing from IPO to production in just over 21 months,” said Bo Sears, Chief Executive Officer of Helix Exploration.
Helix shares were 5% higher in early trade on Monday after rallying around 90% over the past year in the run-up to production.
With production now confirmed, Helix will welcome potential offtake distributors to Rudyard and plans to meet with various parties over the coming weeks. The company is targeting a mix of short and long-term contracts to maximise price and revenue.
Inez well update
Testing at the Inez well has been paused after a drill string “snapping off” incident during the re-entry process — described as a common occurrence in drilling activities. Components will need to be retrieved from the well, though the company confirmed there is no compromise to either the hydrogen potential or helium reserves at the site.
Helix will revisit Inez testing once offtake agreements are in place and continue discussions with several interested parties regarding the hydrogen potential of the broader Rudyard Field.
For now, investors should be delighted that the company now has a cash-generating asset in Montana.