Helix Exploration has completed its first physical helium sales, with the company’s first fully loaded jumbo tube trailer departing its Rudyard facility in Montana.
Today’s announcement marks the transition from an exploration firm to a revenue-generating producer, just over 24 months after its IPO.
The leased ten-cylinder trailer, carrying approximately 160 Mcf of compressed high-grade helium, is now making regular runs to the company’s industrial gases customer under the short-term spot sales arrangement announced in May, at prices reflecting current spot rates.
The customer has also supplied its own trailer for continuous-cycle filling, and Helix has leased a second trailer to add to the rotation.
The industrial gases group has committed to purchasing all currently available production from the three producing wells, with the initial arrangement running to late August.
Discussions continue on longer-term offtake agreements.
Progress on the fourth production well has been slowed by weather, with extreme rainfall delaying re-entry operations at Inez-1, though costs remain within budget.
More wells have been surveyed and await approval from the Montana Board of Oil and Gas. This is where things could get interesting for investors, should Helix succeed in funding an exploration programme funded by cash flows from ongoing operations.
Bo Sears, Chief Executive Officer, said: “The completion of physical helium sales represents a significant milestone in Helix’s development. Watching our first full trailer leave Rudyard carrying compressed high-grade helium is the culmination of a great deal of technical work and an enormous effort throughout the start-up phase from the entire team.”