New Era Helium Inc (NASDAQ:NEHC) announced that it will start building out infrastructure within the Pecos Slope Field in the Permian Basin, having secured approval for approximately 120 miles of Rights-of-Way (ROW).
The new infrastructure will replace the existing gathering system installed in the early 1980s, which is currently operated by a third party and experiences about 25% Field Loss and Unaccounted For gas.
The company plans to begin construction within the next two weeks through its wholly owned subsidiary NEH Midstream LLC.
According to New Era, its current daily production of approximately 4,000 Mcfpd results in around 30,000 Mcf of methane vented monthly, equivalent to the annual CO₂ emissions of nearly 37,905 passenger vehicles.
The upgraded system is intended to significantly reduce methane emissions, support Responsibly Sourced Gas certification, and enhance the market value of helium produced under the Responsibly Sourced Helium designation. The company also plans to issue Methane Performance Certificates similar to carbon credits.
New Era Helium said it has been granted a six-month window by the BLM to temporarily shut in wells during installation if necessary.
The company is working with the New Mexico State Land Office to align with regulatory requirements and anticipates regulatory updates in the next 90 days that may reduce costs and accelerate timelines.
"Reducing fugitive methane emissions is critical to our environmental stewardship goals and supports our broader mission to deliver responsibly sourced products,” New Era Helium CEO Will Gray said in a statement.
“Methane has a significantly higher global warming potential than CO₂ and modernizing the Pecos Slope Field’s infrastructure will not only improve operational efficiency but also greatly reduce the region’s carbon footprint, located within southeastern New Mexico portion of the Permian Basin, while positioning us to meet evolving regulatory standards and enhance long-term value for our stakeholders."
Design optimization of the helium plant, being developed with Arjae Design Solutions, is also underway, the company noted.
New Era Helium reiterated its goal of initiating helium sales in late Q4 2025, subject to construction progress.