By
48 min ago 2 min read
Helium exploration company Helix Exploration (Helix) has agreed to supply 100% of helium production from its Rudyard project in Montana to an industrial gases group.
Helix expects to deliver 30,000 to 40,000 cubic feet of helium per day under a three-month commercial offtake contract for its Rudyard project, following the start of helium production this year.
The company has not disclosed the offtaker or the commercial terms of the deal.
Production is currently being processed from three wells – Linda, Weil and Darwin – which are connected to the project’s gathering system and on-site pressure swing adsorption processing plant, with further wells available for acceleration as the agreement scales.
The offtaker has agreed to arrange additional trailer capacity to remove any logistical bottleneck on Helix’s helium production.
Both parties expect to extend the contract amid global helium supply chain disruption.
Bo Sears, CEO of Helix, said, “[The company] has built a producing asset in the Montana Helium Fairway and is entering production at a favourable point in the market cycle.”
“The pricing is at prevailing spot market rates, and it is substantially higher than the price assumptions used in our pre-IPO model,” he added.
Helix’s strategy is to secure a mix of short and longer-term offtake agreements, starting with spot transactions that establish market relationships.
Rich Brook, Helium and Industrial Gas Consultant, told gasworld in a recent webinar, “There are all sorts of supply chain issues that are cropping up all over the world, and…spot pricing has gone through the roof.”
