Helix Exploration, the helium exploration and development company with near-term production assets within the 'Montana Helium Fairway', has announced the commencement of gas production at its flagship Rudyard Project making it the first Helium gas producer in the state of Montana.
Highlights
- First Helium gas producer in Montana: Helix has successfully commenced production of Helium gas at its flagship Rudyard project. Helium gas is being processed from 3 production wells initially and the Company will integrate the Inez well into production capacity once testing on Inez has been completed.
- Offtake negotiations: Now that Helium production has commenced, the Company will be welcoming potential offtake distributors at Rudyard.
- Capacity & Scale Up: Capacity will scale towards full production over the coming months as the on-site team consolidate the processes around the PSA plant.
Bo Sears, Chief Executive Officer of Helix Exploration, commented:
'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. This also includes our supportive shareholders.
I would also like to extend a special thank you to the entire team at Wikota & Darren Heustis and his team at Nu Wave for their dedication to the project.
The commencement of production marks a transitionary event for the Company as we move from an explorer to a revenue-producing business. We believe that the current market presents significant potential for the Company to continue to grow. The first step will be entering into offtake agreements with discussions now due to commence onsite.'
Keith Spickelmier, Non-Executive Chairman of Helix Exploration, commented:
'Production at the Rudyard Project is a significant milestone for the Company and validates the faith that our shareholder base has placed in our team to deliver. I wish to extend my congratulations and appreciation to Bo and his team on the ground for their tireless work in bringing the Company to this stage and look forward to the next phase of continued growth for the Company.'
Background
The achievement of first production at the Rudyard project marks a milestone for the Company and the state of Montana as it recognizes first production of Helium for both parties. Helix has connected three wells being the Linda, Weil & Darwin wells to the gathering system which will provide initial throughput to the PSA plant. The Inez well will be connected to the gathering system once testing activities have been completed.
Offtake Strategy
Now that production has been confirmed it gives the Company and off takers greater certainty about the ability of Helix to deliver and subsequently greater confidence in negotiations. Helix will be meeting various off takers over the coming weeks with the aim of entering a mix of short & long-term contracts to maximise price and revenue for the Company.
Inez Testing Update
During the re-entry process at the Inez well, the drilling team encountered a "snapping off" incident where parts of the drill string have broken off from the drilling equipment. This is a common occurrence in drilling activities and means that components of the drill string will need to be retrieved from the well.
There is no compromise between the Hydrogen potential or the Helium reserves in the well. Currently the Company is fully focused on production and entering into offtake agreements and will re-visit the testing activities once it has entered into offtake agreements. As previously announced, Helix is continuing discussions with several interested parties regarding the hydrogen potential of the Rudyard Field.
Source: Helix Energy
