HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) has started producing helium gas at its Rudyard project in northern Montana, saying the move makes it the first helium gas producer in the state.
The AIM-listed group said helium is now being processed from three initial production wells through its PSA plant, with capacity expected to scale up over the coming months as operations are stabilised.
Helix added that, with production confirmed, it will now welcome offtake distributors to the Rudyard site as it opens negotiations.
Chief executive Bo Sears described the milestone as a shift in the company’s profile, calling it a “transitionary event” as Helix moves “from an explorer to a producing business,” and said the next step is entering into offtake agreements with talks due to begin onsite.
"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," Sears said.
"The commencement of production marks a transitional 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, Helix chair, meanwhile, added: "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."
Helix also provided an update on the Inez well, where re-entry work hit a “snapping off” incident involving parts of the drill string.
The company said the components will need to be retrieved and it will revisit testing after progressing production and offtake agreements, adding there is no compromise to the well’s helium reserves or the field’s hydrogen potential.