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Highlights
- Helix acquires a high-performing Xebec PSA plant for $500,000, securing exceptional value through industry connections.
- The plant, with a proven production record of 48,000 Mcf/year, will be refurbished and installed at the Rudyard Project.
- The acquisition accelerates timelines and positions Helix as a leading helium producer in Montana by 2025.
Helix Exploration (LSE:HEX), a company dedicated to helium exploration and development within the Montana Helium Fairway, has announced a significant milestone in its journey to becoming a leading helium producer. The company has entered into a Letter of Intent (LOI) and made a $100,000 down payment to acquire a high-performance helium Pressure Swing Adsorption (PSA) processing plant for $500,000 (£397,500).
Strategic Acquisition Details
This acquisition represents an exceptional value for Helix, made possible through long-standing industry relationships. The Xebec-manufactured PSA plant is a proven asset, previously producing 48,000 Mcf of high-grade helium annually between 2015 and 2022. With an impressive 98.5% uptime, the plant has demonstrated its reliability and efficiency.
By acquiring this pre-owned processing facility, Helix is able to significantly reduce the capital and lead times typically required to construct a new plant. The equipment will be refurbished and installed at the company’s Rudyard Project in Montana, marking a major step forward in Helix’s transformation from an exploration company to a development-stage enterprise.
Collaborative Approach
Helix has partnered with Wikota Design & Construction to oversee the refurbishment and installation of the PSA plant. Wikota brings extensive expertise in gas processing and industrial infrastructure, ensuring the project is completed efficiently and to a high standard.
Path to Production
The acquisition is fully funded, enabling Helix to focus on streamlining operations and targeting first production at Rudyard as early as 2025. This strategic move positions the company to capitalize on the growing demand for helium, particularly in industries such as healthcare, technology, and aerospace.
CEO's Perspective
Commenting on the acquisition, Helix’s leadership emphasized the importance of this milestone in accelerating the company’s production timeline and delivering value to shareholders. The reduced costs and expedited setup will enable Helix to establish itself as a competitive helium producer in the Montana Helium Fairway.
Future Outlook
With the PSA plant in place, Helix Exploration is set to significantly advance its operational goals and solidify its presence in the helium market. The company’s focus on efficiency, strategic partnerships, and value creation underscores its commitment to becoming a leading player in helium production by 2025.
