HeLIX Exploration temporarily pauses helium production at Rudyard

HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) told investors it has temporarily paused helium production at its Rudyard facility in Montana after state regulators requested further work around the handling of associated gas, while the company prepares to drill its next production well.

The Montana Board of Oil and Gas Conservation requested the pause following a site visit, with Helix saying some processes remain undefined because it is the state’s first helium producer.

The company said no producible volumes would be lost and is working with the regulator ahead of a hearing scheduled for 15 October.

Before the pause, Helix had completed three tube-trailer sales under a short-term spot arrangement with an industrial gases customer.

That agreement has now been extended through September, with discussions providing what Helix described as a basis for a potential longer-term contract.

Separately, MBOGC has granted the drilling permit for Ollie #1.

Helix’s recently acquired rig is on site, with spudding planned for the week beginning 7 September and completion of the campaign targeted by 31 October.

At Inez #1, re-entry work was unable to clear a cable obstruction sufficiently to access the full target interval.

Helix said the expenditure was not significant and does not affect its recently funded objectives.

The well previously demonstrated 1.2% helium and an Absolute Open Flow rate of 1,157 Mcf/d, with a sidetrack among the remedial options being assessed.