Helix Exploration (LSE:HEX) has reached a significant milestone by moving from exploration into commercial production, commencing helium output at its Rudyard Project in Montana during February 2026 and becoming the state’s first helium producer. During the six months ended 31 March 2026, the company continued well testing, evaluated the hydrogen potential of the Rudyard field and expanded its operating infrastructure, including the lease of a dedicated high-pressure jumbo tube trailer to support helium transportation.
First helium sales and drilling acquisition strengthen growth plans
Following the reporting period, Helix signed its first helium supply agreement through a spot sales contract with a major industrial gases company at pricing above the assumptions used at the time of its initial public offering. The company also agreed to acquire Treasure State Drilling, bringing the Cardwell KB-150 drilling rig into its operations. The acquisition is expected to lower future drilling costs, reduce reliance on third-party contractors and provide greater flexibility as Helix expands production in a market where drilling rigs remain in limited supply.
Investment supports production growth
Helix reported net assets of £17.3 million at the end of the reporting period, reflecting continued investment in intangible assets as well as property, plant and equipment associated with the development of the Rudyard Project. Although the company recorded an interim loss of £774,000 and remains pre-revenue, higher operating costs largely reflected the transition into production. Management believes Helix is now better funded, with established production infrastructure and improved visibility over future growth as it seeks to capitalise on tight global helium supply.
Outlook
Helix’s outlook continues to be constrained by the absence of revenue, ongoing losses and increasing cash outflows, despite maintaining a debt-free balance sheet. These financial challenges are partly offset by strong technical indicators, including a positive share price trend and improving market momentum. Valuation remains difficult to assess while the company remains loss-making and does not pay a dividend.
More about Helix Exploration PLC
Helix Exploration PLC, listed on AIM under the ticker HEX, is a US-focused helium producer developing domestic helium supply from its Rudyard Project in Montana, where it has become the state’s first commercial helium producer. The company is also evaluating the longer-term hydrogen potential of the field.
Helix aims to supply helium to industrial and technology markets that continue to experience structural supply constraints. By investing in its own production infrastructure, transportation assets and drilling capability, the company is seeking to establish a low-cost, vertically integrated position within the US helium market.
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