Helix Exploration Shares Gain, Agrees Deal to Acquire Helium Processing Plant

Shares of AIM-listed Helix Exploration (LON: HEX) rose more than 2% Monday after the company announced it has agreed a deal to acquire a helium processing plant.

The helium exploration and development firm has entered into a Letter of Intent (LOI) and made a $100,000 downpayment for the acquisition of a helium Pressure Swing Adsorption (PSA) processing plant. 

The acquisition is set to be secured through a $500,000 (£397,500) deal, including a high-performing Xebec Pressure Swing Adsorption plant. 

The plant, which is said to have previously consistently produced 48,000 Mcf of high-grade helium annually between 2015 and 2022, boasts a 98.5% uptime. 

Helix said it aims to install the facility at its Rudyard Project in Montana, accelerating its production timeline.

CEO Bo Sears said the acquisition is a “game-changing development” that secures a proven helium processing asset at a fraction of the cost of a new plant. 

“Securing this plant at a fraction of the cost of a new facility represents both a strategic and financial success for the Company,” added Sears. “With the plant's demonstrated ability to produce high grade helium and its rapid deployment potential, we can achieve production both faster and more cost effectively than fabricating a new facility from scratch.”

Wikota Design & Construction, an experienced partner in gas processing infrastructure, will oversee the plant's refurbishment and installation. 

Wikota Design & Construction CEO William Pankhurst stated they are “confident that Helix will successfully meet its helium production targets in Montana and beyond.“.

With refurbishment and installation fully funded, Helix targets first production at Rudyard by early 2025.