Helium exploration company Helix Exploration has paused helium production at its Rudyard facility in Montana, US, at the request of the Montana Board of Oil and Gas Conservation (MBOGC).
Helix said the facility, which began helium in February 2026, is the first of its kind in the state. It agreed in May to of the helium volumes available to an unnamed industrial gas group in June and has since carried out three tube trailer sales.
Helix’s Hereford Resources subsidiary is the operator of two helium-producing wells at the Rudyard site – Darwin #1 and Weil 1.
On 28 July, MBOGC said its staff conducted a field inspection of 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.
Under ARM 36.22.1219, waste of gas from a gas well is prohibited. ARM 36.22.1221 requires waste gas to be burned under the circumstances specified by the rule unless otherwise authorised by the board.
MBOGC said that required samples and gas-analysis information had not been received by the board.
The samples collected from the Darwin 1 well have since been reported as lost, while the gas analysis was submitted prior to the meeting.
Until the operations comply with board rules or the board grants an applicable exception or other authorisation, MBOGC said continued production would constitute illegal production under ARM 36.22.1245.
Helix has not commented on MBOGC’s specific claims but said regulatory processes relating to helium production in Montana have not yet been clearly defined and has suspended sales pending a hearing scheduled for 15 October 2026.
Bo Sears, CEO at Helix, said, “Being the first mover in a buoyant and developing market gives us a significant strategic advantage, but it also means operating in an evolving regulatory environment where certain legislation is not yet clearly defined.
“The management of associated gas is a procedural matter, and we are cooperating with the MBOGC to put in place appropriate permits to resume sales in short order.”
Helix’s offtake agreement had been extended through September 2026, which it said provides a strong basis for a potential long-term contract. The company expected to deliver 30,000 to 40,000 cubic feet of helium per day under the initial three-month commercial offtake contract.
Operational updates
The company attempted re-entry operations at the Inez well to retrieve downhole equipment that had become lodged in the wellbore during initial perforation operations.
The cable obstruction extended farther than the company had been led to expect by the workover operator, preventing Helix from accessing the full target interval.
There is potential to drill a sidetrack from the existing wellbore to access the target intervals.
Sears explained, “We retain several options to access the full target interval at Inez…in the future and will evaluate the optimal path forward.”
The MBOGC has granted Helix a drilling permit for the Ollie well, targeting the extension of the larger northern dome. Drilling completion is targeted for 31 October 2026.
