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Helium exploration company Helix Exploration (Helix) has extended its offtake agreement through March 2027 at its Rudyard facility in Montana, US, after pausing helium production at the site in July.
Once production restarts at the Rudyard project, Helix said it will supply 100% of its helium production to the unnamed industrial gases group under a six-month extension of its initial agreement.
On 3 September, Helix helium production at Rudyard, at the request of the Montana Board of Oil and Gas Conservation (MBOGC).
On 28 July, MBOGC said its staff conducted a field inspection of Helix subsidiary Hereford’s operations and found multiple compliance issues, including gas being vented in connection with production from the wells.
On 12 August, the board ordered Hereford to cease production from the Darwin 1 and Weil 1 wells until the operations comply with board rules or the board grants authorisation.
Helix awaits an MBOGC hearing on 15 October on its Darwin 1 and Weil 1 wells.
The company the initial three-month commercial offtake contract with the industrial gases group in May.
Under the initial contract, Helix expected to deliver 30,000 to 40,000 cubic feet of helium per day.
The terms of the new offtake agreement were not disclosed. However, Helix aims to secure longer-term and higher-volume agreements moving forward.
Bo Sears, CEO of Helix, said, “We are pleased to convert a short-term arrangement into a longer-term spot sales agreement…With a production expansion programme underway, we look forward to increasing sales volumes to the customer over time.”
Helix also recently commenced drilling of the , with drilling completion targeted for 31 October.
