*A first tube trailer of high-grade helium off site in July has turned two years of AIM development into an early, if bumpy, commercial helium business.*
Helix Exploration (AIM: HEX) has shipped its first commercial cargo of helium from the Rudyard project in Montana, sending out a full jumbo tube trailer carrying around 160 Mcf of high-grade gas on 20th July, just over two years after its AIM listing.
The milestone matters because it shows Helix can do more than flow gas at the wellhead: it has processed, loaded and physically delivered helium to an industrial gases customer, with three trailer sales completed by early September and a short-term supply agreement extended while talks continue on a longer-term deal.
Rudyard began producing in February, but the operation has since scaled up, with customer-supplied and leased trailers running on continuous rotation by early August and all wells on the site's pipeline system reported to be operating at high pressure. Helix has also pushed further down the value chain, completing the acquisition of the Keyes Helium Complex in Oklahoma in July; by August the plant was already tolling third-party helium, filling trailers weekly and generating revenue. Keyes is one of only six operating helium liquefaction facilities in the US, giving Helix the ability to process both its own gas and material from other producers.
The build-out has not been entirely trouble-free. Following a site inspection, Montana's regulator asked for a temporary pause in production while it examines how associated gas is being handled, with a hearing set for 15th October. Helix has continued drilling regardless, spudding the Ollie 1 well in Rudyard's Northern Dome on 14th September as a fourth production well, with the operation expected to take around 21 days.
The company has clearly shifted from an exploration story to one of execution, but the real test now is whether Helix can resolve the regulatory pause and ramp production reliably enough to convert early trailer sales into a sustained, repeatable commercial business.
This report is based on Helix Exploration’s announcement and coverage by Share Talk. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Eric Prouzet on Unsplash.
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