Helix Exploration (HEX: AIM) has made one of the clearest moves from development into commercial activity since March. Production at its Rudyard project in Montana began in February, but the more important milestone came on 20th July, when its first full jumbo tube trailer left the site carrying approximately 160 Mcf of high-grade helium. That first physical sale meant Helix had progressed from its AIM IPO to revenue-generating helium production in a little over two years.
The operation then moved beyond a single shipment. By early August, customer-supplied and leased trailers were operating on a continuous rotation, while all wells connected to the Rudyard pipeline system were reported to be operating under high pressure. Helix had completed three trailer sales by the beginning of September, and its short-term customer agreement was extended through September while discussions over a longer-term arrangement continued. This is an important distinction from simply demonstrating helium at the wellhead, because Helix has shown that it can process, load and physically deliver product to an industrial gases customer.
Helix has also expanded further down the supply chain. In July it completed the acquisition of the Keyes Helium Complex in Oklahoma, and by August helium was already being tolled through the facility, with tube trailers being filled weekly and generating revenue. Keyes is described by Helix as one of only six operating helium liquefaction facilities in the United States, giving the company the ability to process both its own helium and third party gas. That creates a broader business than Rudyard alone and potentially gives Helix more control over the value between production at the wellhead and the final sale of liquid helium.
The move into production has not been completely smooth. Following a site inspection, the Montana regulator requested a temporary production pause while questions over the handling of associated gas are resolved, with a hearing scheduled for 15th October. At the same time, Helix spudded Ollie 1 on 14th September, targeting a fourth production well in Rudyard’s Northern Dome, with drilling expected to take around 21 days. The story has therefore moved decisively from exploration into execution, but the next test is whether Helix can restart and expand production reliably enough to turn its early sales into a sustained commercial business.
