What is Helium?
Author: steve@biztechmedia.net.
When most people think of helium, they imagine party balloons or the funny, squeaky voice effect from inhaling it. But helium is much more than that – it’s a critical resource essential to many high-tech industries. In fact, this colourless, odourless gas plays a role in everything from medical imaging to space exploration. However, unlike party balloons, the demand for helium is serious business.
Helium’s unique properties make it irreplaceable in certain applications. It’s the second lightest element and has the lowest boiling point of any element, which allows it to stay in a liquid state at extremely low temperatures. This is essential for cooling superconducting magnets in MRI scanners, an industry that relies heavily on helium’s unique cooling capabilities. Without helium, many life-saving MRI machines would simply stop functioning.
Beyond healthcare, helium is indispensable in the aerospace and electronics industries. NASA, for instance, uses liquid helium to cool equipment and pressurize fuel tanks in rockets. Helium’s non-reactive nature also makes it essential for creating controlled atmospheres during the manufacturing of semiconductor chips – the building blocks of all modern electronics, including artificial intelligence..
A Global Shortage and Primary Helium Exploration
Helium isn’t just in high demand – it’s also in short supply. Despite being the second most abundant element in the universe, helium is surprisingly rare on Earth. This scarcity stems from the fact that helium is typically only found in natural gas fields in small quantities, and once it’s released into the atmosphere, it escapes into space, lost forever. The slow rate of replenishment means that we’re reliant on a few key reserves globally, and those reserves are depleting quickly.
In recent years, a global shortage has driven prices up (Table 1.) and created urgency for new sources of helium. As the availability of helium declines, the industries that rely on it face escalating costs and potential supply disruptions. This is where the UK-listed helium exploration companies come in – by tapping into primary helium sources, they aim to meet this critical demand and reduce reliance on helium as a byproduct of natural gas extraction.
With AIM’s backing, the UK has become a hub for primary helium exploration.
Why Primary Helium Exploration is Rising—and Why the UK is Leading the Way
While helium might not seem as glamorous as gold or as widely discussed as oil, it’s every bit as essential. With applications in everything from cooling quantum computers to detecting leaks in scientific equipment, helium’s strategic importance continues to grow. This is why investors and industry stakeholders alike are turning their attention to helium exploration and production. Securing a stable supply of this irreplaceable resource could prove to be one of the most valuable investments of the decade.
This is where the UK’s AIM market comes in. Recognizing helium’s strategic importance, AIM has supported a wave of new helium exploration companies, such as Helium One, Pulsar Helium, and Helix Exploration. Unlike helium sourced as a byproduct, these companies focus on primary helium fields—areas with high helium concentrations that offer better control over supply and quality. Primary helium exploration is seen as essential for stabilizing supply and meeting the needs of high-tech industries that rely on this rare element.
By pioneering primary helium extraction, UK-listed companies are not only helping to address the shortage but are also positioning themselves as key players in the global helium market. With potential for growth and strong investor interest, these companies could play a crucial role in securing a sustainable helium supply for the future, keeping MRI machines operational, rockets fueled, and semiconductors manufactured without interruption.
Overview of Key UK-Listed Helium Companies
This section provides an overview of the leading helium exploration companies listed on the UK’s AIM market. Each profile summarizes the company’s market position, key projects, recent share price movement, latest RNS announcements, and financial standing. Please note that this is not an exhaustive analysis but a snapshot of each company’s current status and future potential in the helium industry.
Helium One Global (AIM: HE1)
Company Overview
Helium One Global Ltd is a leading AIM-listed helium exploration company focused on high-purity helium reserves in Tanzania. Known for its pioneering work, Helium One has a market capitalization of approximately £53.47 million at the time of writing, positioning it as one of the larger players in the helium exploration industry. The company holds three major project areas in Tanzania: Rukwa, Balangida, and Eyasi, covering a total of over 2,965 square kilometers and characterized by helium concentrations as high as 10%.
Flagship Project
Helium One’s primary asset is the Rukwa Project, located in Tanzania’s Rukwa Basin. This project has reported helium concentrations up to 10.6%, well above the levels typically needed for commercial viability. The company is advancing exploration with a focus on high-quality, high-yield helium deposits.
Share Price Movement
Over the 6 months, Helium One’s share price has demonstrated volatility, influenced by exploration updates, funding requirements, and broader market conditions. Trading between 0.19 GBX and 6.68 GBX in the past 52 weeks, shares have responded particularly to successful drilling and funding announcements. Current prices reflect the market’s response to recent project milestones, with investors closely watching upcoming results.
Recent RNS Announcements
- 17th October 2024 – Company Update on operational progress at key sites.
- 23rd September 2024 – Blocklisting six-month return, reflecting share issuance.
- 17th September 2024 – Another company update detailing Rukwa project advancements.
- 4th September 2024 – Reported sustained helium flow at the Itumbula West-1 (ITW-1) well.
- 27th August 2024 – Acquisition of an additional helium and CO₂ project, with a successful equity raise to support exploration.
Financial Position
According to recent interim financial statements, Helium One holds cash reserves of approximately £12 million, with minimal debt. The company successfully raised £8 million in June 2024, ensuring sufficient funding for the next phases of the Rukwa Project. These funds are intended to support further drilling and infrastructure development across the company’s Tanzanian assets.
Future Outlook
Helium One’s Tanzanian projects place it in a strong position to meet global helium demand, especially as high-purity, primary helium sources become increasingly valuable. The Rukwa Project’s continued success could position Helium One as a major supplier within the next few years. Investors remain optimistic about the potential for high-yield helium extraction and the possibility of future partnerships to accelerate commercial production.
Zephyr Energy (AIM: ZPHR)
Company Overview
Zephyr Energy PLC, focuses on resource development with a commitment to carbon-neutral operations. The company has a diverse portfolio of oil, gas, and helium assets, primarily within the Paradox Basin in Utah, USA. With a market cap around £54.4 million at the time if writing, Zephyr has made significant progress in both exploration and sustainable resource management, making it an attractive prospect within the energy sector.
Flagship Project
Zephyr’s primary project, the Paradox Basin in Utah, spans 46,000 acres and is positioned as a high-potential, multi-reservoir asset. The Paradox project has yielded promising results in recent tests, including high flow rates from the State 36-2 well. This project includes both oil and helium prospects, giving Zephyr a unique dual-focus within the basin and positioning it well to capitalize on helium demand.
Share Price Movement
Zephyr’s share price has experienced fluctuations in response to project updates. Over the last year, shares have traded within a range of 1.92 GBX to 6.00 GBX, with recent prices stabilizing around 3.05 GBX. Investor sentiment has been closely tied to exploration outcomes and the broader market’s view on energy stocks, particularly those with a sustainable.
Recent RNS Announcements
- 16th October 2024 – Semi-annual redetermination update on the credit facility, supporting financial flexibility.
- 10th October 2024 – Paradox project update with ongoing testing and developments.
- 26th September 2024 – Half-year report detailing financials and project progress.
- 17th September 2024 – Response to market speculation regarding project operations.
- 6th September 2024 – Successful production test result from the State 36-2R well, confirming resource potential.
Financial Position
Zephyr’s financials show robust support for its ongoing projects. The company recently refinanced its revolving credit facility, reducing interest obligations and enhancing cash flow. With approximately £5.7 million in cash reserves, Zephyr is well-positioned to continue development at Paradox without immediate funding concerns.
Future Outlook
The outlook for Zephyr Energy remains positive, with the Paradox Basin offering a substantial resource base across oil and helium. The company’s dedication to carbon-neutral operations and focus on responsible resource development aligns with market demand for sustainable energy sources. As helium demand continues to grow, Zephyr’s dual-resource approach could yield significant returns.
Pulsar Helium (AIM: PLSR)
Company Overview
Pulsar Helium Inc. is a newly listed pure-play helium exploration company on AIM, with a dual listing on the TSX Venture Exchange in Canada. The company’s focus is on high-purity helium reserves in Minnesota, USA, and Greenland. Following its IPO on AIM in October 2024, Pulsar raised approximately £5 million at 25p per share, giving it a market capitalization of £31.6 million at the time of writing. Pulsar is distinguished as a “first mover” in both of its project regions, with no hydrocarbon-associated helium, making it a unique player in primary helium extraction.
Flagship Project
The Topaz Project in Minnesota is Pulsar’s primary asset, known for recording one of North America’s highest helium concentrations at 14.5%. The company plans to use funds raised to advance drilling, acquire seismic data, and complete a preliminary economic assessment, which will clarify the project’s commercial viability. Pulsar also holds the Tunu Project in Greenland, further diversifying its portfolio.
Share Price Movement
Pulsar Helium’s shares began trading on AIM at 25 GBX and saw an initial rise of over 22% to approximately 30.6 GBX shortly after listing. The stock’s early performance reflects strong investor interest in helium-focused companies, particularly given global supply constraints. Current trading levels remain close to the IPO price as investors await further project updates and drilling results.
Recent RNS Announcements
- 18th October 2024 – First day of trading on AIM, with the announcement of £5 million raised at 25p per share.
- 15th October 2024 – Conditional fundraising announcement confirming successful pre-IPO share placement.
- 10th October 2024 – Positive seismic interpretation announced, increasing the potential opportunities of the Topaz Helium Project.
- 2nd October 2024 – Significant land position increase at the Topaz Helium Project in Minnesota, expanding resource potential.
- 1st September 2024 – Announcement of investor awareness agreements to support shareholder engagement and visibility.
Financial Position
Pulsar’s recent IPO provided £5 million in funding, earmarked for ongoing development of the Topaz Project and preparatory work at Tunu in Greenland. With no significant debt, the company is financially stable and focused on accelerating exploration efforts. The initial capital is expected to support operational costs and the preliminary economic assessment needed to move toward potential production.
Future Outlook
Pulsar’s unique position in high-concentration helium exploration, combined with the Topaz Project’s promising results, positions it as a potential key supplier in the helium market. Its dual listing expands its investor base, and the company’s environmentally sustainable approach to primary helium extraction is appealing to investors concerned about ESG (Environmental, Social, Governance) factors. Continued drilling and economic assessments in the coming months will be critical for validating the project’s long-term viability.
Predator Oil & Gas (AIM: PRD)
Company Overview
Predator Oil & Gas Holdings PLC, focuses on natural gas and enhanced oil recovery with a commitment to carbon capture and CO₂ sequestration. The Jersey-based company operates primarily in Morocco, Ireland, and Trinidad, with its flagship Guercif Gas Project in Morocco showing significant potential. Predator aims to deliver environmentally responsible energy solutions and is working to commercialize its projects to meet the growing demand for lower-emission fuels. The company has a market cap of around £37 million at the time of writing.
Flagship Project
The Guercif Gas Project in Morocco is Predator’s main asset, targeting both gas production and helium potential. Located near key infrastructure, the project has been the focus of Predator’s recent exploration and testing. The MOU-5 prospect is particularly promising, with drilling and testing results expected to confirm both gas and helium resources.
Share Price Movement
Over the past year, Predator’s share price over the last year has ranged from around 5.7 GBX to 15 GBX, reflecting market interest in its gas exploration efforts and environmental initiatives. Shares recently stabilized near 6.5 GBX, with investors closely monitoring progress at the Guercif Project as well as developments in the company’s CO₂ sequestration projects.
Recent RNS Announcements
- 2nd October 2024 – Issuance of share options and lapse of previous options.
- 30th September 2024 – Positive update on the helium potential at the MOU-5 prospect within Guercif.
- 26th September 2024 – Appointment of a new Non-Executive Chairman to strengthen corporate governance.
- 25th September 2024 – Release of interim results for the period ending 30 June 2024, showing stable financials.
- 17th September 2024 – Corporate update on operational activities and strategic direction.
Financial Position
According to Predator’s interim financial report for H1 2024, the company maintains adequate cash reserves to support its drilling and exploration activities, particularly in Morocco. The recent issuance of share options and increased investor interest indicate a stable cash flow to support upcoming drilling phases at Guercif.
Future Outlook
Predator’s Guercif Project, with its dual focus on gas and helium, positions it to benefit from rising demand for both clean fuel and critical gases. Additionally, Predator’s commitment to CO₂ sequestration and enhanced oil recovery aligns with ESG investment priorities, making it an appealing choice for investors focused on sustainable energy. Future developments in Morocco will be crucial in determining the company’s growth trajectory, with the next rounds of drilling expected to provide clarity on resource potential.
Georgina Energy (AIM: GEX)
Company Overview
Georgina Energy PLC is focused on helium and hydrogen exploration, with complementary natural gas assets in Australia. The company’s strategy leverages Australia’s resource-rich landscape, aiming to become a major producer of critical gases in a stable jurisdiction. Georgina Energy has received strong investor interest since its listing, with a focus on helium and hydrogen due to their high demand in tech and energy sectors.
Flagship Project
Georgina’s primary asset is the Hussar Project located in Australia’s Northern Territory. The project has shown promising helium concentrations alongside natural gas reserves, positioning it as a key component of Georgina’s portfolio. The Hussar field, expected to yield both helium and hydrogen, is advancing through exploration stages, with recent resource upgrades and well re-entry operations to maximize potential.
Share Price Movement
Georgina Energy’s share price has demonstrated moderate volatility, trading between 9.7 GBX and 19.4 GBX over the last year. The stock has been influenced by positive updates on the Hussar Project and investor anticipation around further resource evaluations. The latest prices hover near 9.7 GBX at the time of writing, reflecting investor interest in helium and hydrogen assets amid global demand for critical gases.
Recent RNS Announcements
- 17th October 2024 – Resource upgrade announced for the EP513 Hussar project, increasing potential helium reserves.
- 8th October 2024 – Signing of a confidentiality agreement for further resource development.
- 3rd October 2024 – Operational update on the Hussar Project, with progress on re-entry and development.
- 19th September 2024 – Issue of additional ordinary shares for strategic expansion.
- 29th August 2024 – Announcement of additional well re-entry opportunities to optimize helium production.
Financial Position
According to recent disclosures, Georgina maintains stable cash reserves to support ongoing exploration, particularly at Hussar. The issuance of additional shares in September 2024 further strengthened its capital position, enabling the company to progress with re-entry and further resource evaluations at Hussar.
Future Outlook
Georgina Energy’s focus on helium and hydrogen exploration, alongside natural gas, positions it well in an energy landscape increasingly driven by demand for clean and critical gases. As exploration progresses, Georgina aims to deliver both strategic resources and contribute to the growing demand for helium in tech and healthcare. Investors remain watchful of updates from the Hussar Project, which is anticipated to confirm the commercial viability of helium extraction.
Helix Exploration (AIM: HEX)
Company Overview
Helix Exploration PLC is focused on helium exploration within the Montana Helium Fairway, USA. The company’s flagship Ingomar Dome Project covers approximately 16,500 acres in a helium-rich region. Helix raised £7.5 million during its oversubscribed IPO in April 2024, giving it an initial market cap around £12 million. With a P50 resource estimate of 2.3 billion cubic feet of helium, Helix aims to supply the increasing demand for helium in sectors such as healthcare and
Flagship Project
Helix’s Ingomar Dome Project in Montana has shown promising helium and hydrogen indications at its Clink #1 well. Drilling reached a depth of 8,030 feet, encountering multiple formations with positive helium results. Despite a delay due to wellbore stability issues, the company plans to mobilize a new rig to resume operations soon. This project is positioned to benefit from the rising demand for helium, particularly as the United States seeks domestic sources to reduce reliance on
Share Price Movement
Helix’s share price began trading at 23 GBX post-IPO and has since experienced fluctuations, primarily driven by updates on the Ingomar Dome project. Shares reached as high as 29 GBX following positive announcements but have recently stabilized around 23 GBX, as investors await further drilling outcomes.
Recent RNS Announcements
- 28th October 2024 – Completion of rig mobilisation at the Rudyard site for upcoming operations.
- 24th October 2024 – Production casing cemented at Clink #1, progressing towards well testing.
- 21st October 2024 – Successful re-entry of the Clink #1 well, resuming paused operations.
- 15th October 2024 – Notification of significant holdings update in the company.
- 7th October 2024 – Rig mobilisation at Ingomar Dome for Clink #1 well operations.
Financial Position
Helix Exploration’s IPO raised £7.5 million, which is dedicated to exploration and appraisal activities at the Ingomar Dome. The company remains well-funded, even as additional expenses are expected due to the wellbore issues encountered at Clink #1. This capital provides a runway for continued drilling and resource assessments, crucial to achieving commercial production in the coming years.
Future Outlook
Helix’s position within the helium industry is strengthened by its Montana project, where helium and hydrogen concentrations offer dual revenue streams. The Ingomar Dome’s high helium potential aligns with the global push for alternative energy sources and technological applications. With further drilling and a focus on resource validation, Helix is poised to become a significant player in the helium market, though near-term success depends on overcoming current operational challenges.
Mosman Oil and Gas (AIM: MSMN)
Company Focus
Previously focused on oil and gas, Mosman Oil and Gas has recently pivoted to emphasize helium exploration. The company completed the sale of its primary oil assets in Texas (Nadsoilco LLC) in October 2024 for up to $1.75 million, redirecting management resources and capital towards helium opportunities. This sale allows Mosman to fully concentrate on its helium and hydrogen projects in the United States, where helium demand is surging.
Key Projects
Mosman’s principal helium asset is the Vecta Helium Project in Colorado, where five drilling locations have been identified, and the company is gearing up for its first round of drilling. Additionally, Mosman holds the EP 145 license in Australia’s Amadeus Basin, further diversifying its helium portfolio.
Future Outlook
The sale of Nadsoilco LLC is a major strategic step, freeing up capital and management focus for helium projects. Mosman has appointed Tim Rynott, a seasoned helium consultant based in Colorado, to oversee the Vecta Project and develop further helium acquisition opportunities in the region.
80 Mile PLC (AIM: 80M)
Company Focus
Formerly known as BlueJay Mining, 80 Mile PLC has rebranded to pursue helium and hydrogen exploration, with a particular focus on industrial gases. The company leverages its expertise in resource extraction and is now exploring high-potential areas in Finland for helium and hydrogen, both critical resources for the tech and healthcare industries.
Key Projects
Outokumpu Belt and Hammaslahti Project (Finland): These projects are central to 80 Mile’s helium exploration strategy. Recent sampling in the Outokumpu Belt has shown surface helium concentrations as high as 10.7%, alongside high levels of hydrogen. The potential for large subsurface accumulations of these gases positions 80 Mile to capitalize on the industrial demand for helium and hydrogen.
Disko-Nuussuaq Project (Greenland): While originally focused on mineral resources, the Disko project in Greenland is now being assessed for its helium potential. This project offers a strategic diversification opportunity as 80 Mile expands its portfolio to explore critical gases in multiple locations.
Future Outlook
Following the discovery of high-grade helium and hydrogen at surface levels, 80 Mile is accelerating its exploration program in Finland. The company has announced plans for further sampling and deeper testing, aiming to conduct a proof-of-concept study to assess the commercial viability of helium and hydrogen extraction. This shift represents a strategic move to tap into the growing market for industrial gases.
Mendell Helium PLC (AQSE: MDH)
Company Focus
Mendell Helium, formerly Voyager Life plc, announced that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium’s shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.
Key Projects
M3 Helium has interests in six wells in South-Western Kansas of which three (Peyton, Smith and Nilson) are in production. Five of the company’s wells are within the Hugoton gas field, one of the largest natural gas fields in North America. Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.
The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition. Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.
Future Outlook
The next phase of M3 Helium’s development is to identify further locations for new wells. M3 Helium operates in two locations: the Hugoton gas field, one of the largest natural gas fields in North America, and Fort Dodge. Management believe that expansion opportunities are more limited in Fort Dodge but helium concentrations (5.1% at the Rost well) are likely to be higher. Conversely there are extensive options in the Hugoton and the Company and M3 Helium have developed a good working relationship with Scout Energy Partners, the largest operator in the region and owner of the Jayhwak gas processing plant, a relationship which the M3 Helium board considers is likely to be key to expansion.
What Makes Helium Companies Attractive to Investors?
Helium’s rarity and strategic importance in essential industries—from healthcare to space exploration—make it a valuable commodity. Unlike other gases, helium is irreplaceable in its applications, with no synthetic substitutes. Its unique properties are critical for MRI machines, semiconductor manufacturing, and scientific research. With demand outstripping supply and no way to artificially produce it, helium has become a sought-after investment, especially in a world increasingly dependent on advanced technologies.
What really sets primary helium companies apart is their independence from oil and gas markets. Companies like Helium One and Pulsar Helium focus exclusively on high-purity helium fields, offering a more reliable, controlled supply. This pure-play approach has drawn investor interest even in challenging markets, with recent successful IPOs and fundraisings underscoring confidence in helium’s long-term growth potential.
- Future Outlook: What’s Next for the UK Helium Sector?
The future of the UK helium sector looks promising, with advances in extraction technology and AI-driven exploration helping companies uncover richer, previously untapped reserves. These innovations not only improve efficiency but also reduce costs, allowing companies like Zephyr Energy and Pulsar Helium to scale faster and meet global demand. Sustainable practices are also gaining traction, as companies aim to minimize environmental impact while securing stable helium supplies—a move that resonates with investors prioritizing ESG principles.
Looking ahead, AI and data analytics are set to play an even greater role in helium exploration, allowing companies to identify high-yield areas with precision and speed. As the need for reliable helium sources grows, UK-listed firms are positioning themselves to lead, blending cutting-edge technology with sustainable practices. This positions the UK as a key player in the global helium market, with its companies poised to meet the increasing demand for this irreplaceable gas.
Investment Perspective: Risks and Opportunities
Helium exploration offers a rare investment opportunity in an essential but limited commodity. With its unique applications in healthcare, tech, and energy, helium demand is set to rise, presenting growth potential for companies tapping into new reserves. Recent fundraising successes, like those of Helium One and Pulsar Helium, underscore strong investor confidence even amid market volatility. However, risks remain, including regulatory changes, exploration challenges, and reliance on specific geographical region.
For investors, the helium sector combines high potential returns with unique challenges. While market dynamics can be unpredictable, helium’s critical role across industries and the sector’s strategic shift towards sustainable practices make it an appealing long-term prospect for those willing to balance risk with reward.
Conclusion: The Strategic Importance of Helium and the UK’s Role
As a scarce and irreplaceable resource, helium is more than a commodity; it’s a strategic asset essential to future innovation. UK-listed companies like Helium One, Zephyr Energy, and Pulsar Helium are positioning themselves to meet rising demand, driven by applications in tech, healthcare, and space exploration. With advances in extraction technology and sustainable practices, the UK helium sector is poised for growth, making it an exciting area for investors and industry watchers alike.
The UK’s role in the global helium market is becoming increasingly prominent, with its companies leading exploration and setting new standards for sustainability and efficiency. As demand continues to rise, the UK helium sector stands ready to play a vital role in securing a stable, long-term helium supply.
Author: steve@biztechmedia.net.
Disclaimer & Declaration of Interest:
This article reflects the author’s personal views and is for informational purposes only. It should not be considered as financial advice. Always do your own research or consult a professional financial advisor before making any investment decisions. Nothing in this should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion
