Helix Exploration secures helium processing plant to fast-track Montana operations

Helix Exploration PLC, a leading helium exploration and development company operating in the Montana Helium Fairway, has taken a transformative step in its growth strategy. The Company has acquired a state-of-the-art helium processing plant, propelling its ambition to become a significant helium producer by 2025. This strategic acquisition underscores Helix’s commitment to cost-effective operations and timely delivery of its projects.

The plant, acquired for $500,000 (£397,500), includes a proven Pressure Swing Adsorption (PSA) system manufactured by Xebec. This advanced equipment has a track record of delivering high-grade helium and is set to be installed at Helix’s flagship Rudyard Project.

Helix Exploration’s Game-Changing Acquisition

The decision to acquire the helium PSA processing plant marks a significant milestone in Helix’s journey. This asset, capable of producing 48,000 Mcf/year of high-grade helium with a 98.5% uptime, is expected to reduce capital expenditure while accelerating production timelines.

Bo Sears, CEO of Helix Exploration, highlighted the acquisition as a cornerstone of the Company’s strategy. He emphasised that purchasing the plant at a fraction of the cost of a new facility demonstrates Helix’s commitment to operational efficiency and value creation.

Additionally, the collaboration with Wikota Design & Construction, a trusted partner in gas processing and industrial infrastructure, ensures seamless refurbishment and installation. This partnership is expected to significantly reduce the lead time associated with deploying new facilities, enabling Helix to meet its production goals faster.

Rudyard Project: A Cornerstone of Helix’s Portfolio

The Rudyard Project is central to Helix Exploration’s growth strategy. Recent exploration at the project site has yielded promising results. The Darwin #1 well, targeting the Souris and Red River formations, delivered an impressive daily flow rate of 2,750 Mcf with helium concentrations of 1.1%.

The Rudyard field’s robust geological profile supports multiple production wells, each capable of generating annual pre-tax cash flows of approximately $4.0 million. This potential aligns with Helix’s broader goal of leveraging Montana’s rich helium reserves to establish itself as a leading producer in the region.

The installation of the PSA plant at Rudyard will enable Helix to transition from exploration to production, delivering helium to meet growing global demand while enhancing shareholder value.

Expanding Horizons: Ingomar Dome Project

Beyond Rudyard, Helix Exploration is also advancing its Ingomar Dome Project, where the Clink #1 well demonstrated helium and hydrogen potential. Gas samples revealed 2.5% helium and 55.2% hydrogen, offering additional opportunities for resource development. With further stimulation, these reserves could achieve commercial flow rates, expanding Helix’s production capabilities.

Strategic Vision for 2025 and Beyond

Helix Exploration’s strategic pivot from exploration to production reflects its long-term vision. The acquisition of the helium processing plant signals a transition to development-stage operations, with first production from the Rudyard Project targeted for early 2025.

Sears has reiterated the Company’s commitment to maintaining financial discipline while pursuing aggressive production timelines. By leveraging existing infrastructure and partnering with industry leaders like Wikota Design & Construction, Helix is well-positioned to deliver on its goals.

Meanwhile, William Pankhurst, CEO of Wikota, praised the collaboration, noting that Helix’s efficient project execution sets a new benchmark for the helium industry. Wikota’s expertise in helium, RNG, and natural gas processing will be instrumental in ensuring the plant’s successful integration.

Helix Exploration: Building Stakeholder Confidence

Helix remains dedicated to transparent communication with investors and the market. The Company plans to provide regular updates on the plant’s refurbishment, installation, and commissioning milestones. This proactive approach aims to foster confidence among stakeholders as Helix moves closer to becoming a prominent player in the helium industry.

Looking Forward

As the demand for helium surges globally, Helix Exploration’s focused strategy and resourceful acquisitions position it to meet market needs effectively. The deployment of the PSA plant not only accelerates production timelines but also underscores the Company’s commitment to operational excellence.

By prioritising cost-effective solutions and leveraging its strategic partnerships, Helix Exploration is poised to become a major force in helium production, driving growth in Montana’s burgeoning energy sector.