Helix Exploration (AIM:HEX), the AIM and OTCQB-listed US helium production and liquefaction company, has paused output at its Rudyard facility in Montana after the state's oil and gas regulator raised concerns over the handling of associated gas.
The Montana Board of Oil and Gas Conservation requested the pause following a site visit, noting that processes for helium gas production, where Helix is the state's first producer, remain undefined.
Helix has complied and is working with the regulator ahead of a hearing scheduled for 15 October, with the board stating there is no loss of produceable volumes and expecting production to resume in a timely manner.
The pause follows the start of commercial operations in July, when Helix completed three tube trailer sales to its industrial gases customer under a short-term spot arrangement now extended through September, which the company says provides a strong basis for a long-term contract.
Separately, the MBOGC has granted a drilling permit for the Ollie #1 well, targeting an extension of the northern dome, with spudding scheduled for the week of 7 September and completion expected by 31 October.
At the Inez #1 well, which previously showed helium concentrations of 1.2% and an absolute open flow rate of 1,157 Mcf/d, Helix is assessing remedial options including a sidetrack to reach untapped intervals after encountering an obstruction during re-entry.
"The obstruction we encountered at Inez #1 was not foreseeable based on the information at our disposal, and our decision to attempt the re-entry was operationally sound," chief executive Bo Sears said.
Sears added that tolling through the company's Keyes liquefaction facility in Oklahoma continues on plan.
News Intelligence what this means for the company
Helix Exploration has halted production at its Montana helium facility at the regulator's request after the state oil and gas board raised concerns over undefined processes for handling associated gas—a setback for a company that only began commercial operations in July and completed its first sales in that same month. The pause, ahead of an October 15 hearing, creates near-term revenue uncertainty for a business that acquired an operational US liquefaction plant just months ago and was building momentum toward a long-term contract.
The regulatory halt undermines the narrative of smooth ramp-up from the July start of commercial operations and raises execution risk around permitting and compliance in a new production domain where Helix is Montana's first helium producer. The company retains the underlying resource—the regulator stated no loss of produceable volumes—but timing to resumption and the scope of remedial work required remain uncertain pending the October hearing.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
