Helix Exploration’s first production, annual results and a tightening helium market
Helix Exploration has published audited results for the year to 30 September 2025 and, crucially, confirmed it moved into production at the Rudyard Project after the period end. For a company that only listed in April 2024, that is quick work. The tone is confident: wells have tested well, the plant is up and running, and Helix says it is now the first helium producer in Montana.
The backdrop matters. Management highlights a fresh global squeeze on supply, with disruptions in the Gulf driving what they describe as “Helium Shortage 5.0” and spot prices doubling in weeks. If you can produce reliably in North America, you have leverage in offtake talks. That is exactly where Helix wants to be.
Rudyard Project: test results, scalability and why it matters
Helix tested four wells across 2025 – Linda #1, Weil #1, Inez #1 and Dawin #1 – with the first three confirming excellent reservoir quality and helium concentrations up to 1.2%. The company says the field can support multiple production wells and deliver meaningful cash flow over its life.
Headline operational points that stood out:
- Helium concentrations up to 1.2% from the Souris and Red River formations.
- Test flow rates up to 3,800 Mcf/day (thousand cubic feet per day) of helium/nitrogen gas, supporting commercial potential.
- Processing facility commissioned after year-end, using a Xebec PSA plant. PSA stands for pressure swing adsorption – a cost-effective way to separate helium from gas streams.
- First production achieved post period end, establishing Helix as the first helium producer in Montana.
My take: confirming multiple productive wells and getting the plant fully operational de-risks the story. The real proof will be sustained uptime and volumes, which are not disclosed yet. But the ingredients for scale look in place.
Market context: a strategic tailwind from a global helium crunch
Helix leans into the market narrative. The company states the Middle East conflict and effective closure of the Strait of Hormuz since early March 2026 have removed roughly one-third of global helium supply, with Qatar’s Ras Laffan complex halted and spot prices doubling within weeks. With supply concentrated in the US, Qatar and Russia, reliability is at a premium.
Why this matters for Helix:
- North American production with no reliance on Gulf shipping routes is a selling point in offtake negotiations.
- Tighter supply should be constructive for pricing. Helix is “in active dialogue with customers” and expects negotiations to benefit from the current environment.
Caveat: pricing is not standardised. The company reminds us there is no readily accessible spot market for helium and long-term contracts need careful thought. Management is clearly balancing immediate cash generation against the opportunity cost of locking in at the wrong level.
Financials: investment year, clean balance sheet and cash runway
FY2025 was still pre-revenue, but spending ramped to get Rudyard into production. The loss narrowed year-on-year, and the balance sheet expanded as assets were built out.
| Metric | FY2025 | FY2024 |
|---|---|---|
| Revenue | £0 | £0 |
| Administrative expenses | £1.281 million | £0.664 million |
| Total operating loss | £1.857 million | £2.165 million |
| Loss for the year | £1.864 million | £2.165 million |
| Basic EPS | (1.21)p | (3.30)p |
| Cash and cash equivalents | £2.734 million | £4.960 million |
| Intangibles (exploration assets) | £9.819 million | £4.087 million |
| Property, plant and equipment | £3.687 million | £0 |
| Net assets | £15.839 million | £8.685 million |
Cash movement tells the story. Operating outflow was £1.825 million, and Helix invested £9.332 million (processing plant and exploration), largely funded by £8.937 million of equity inflows. Post year-end, it raised a further £2.2 million in March 2026 and saw small warrant exercises.
Balance sheet quality looks good: modest liabilities (£938,000 total), no disclosed debt, and a larger asset base reflecting the plant and exploration spend. The going concern statement expects the group to be revenue generative and highlights active offtake discussions.
What I like, and what I’m watching
Positives driving the equity story
- Execution: from IPO to first production in under two years is impressive. Multiple successful wells reduce single-asset risk within the field.
- Cost focus: the Xebec PSA set-up is pitched as low-cost and efficient, which should matter when margins tighten later in the cycle.
- Market timing: moving into production during a supply crunch gives Helix potential pricing power and negotiating leverage.
- Funding in place: £4.5 million raised in June 2025 and £2.2 million in March 2026 provide working capital as offtakes are finalised.
Risks and open questions
- Revenue not disclosed yet: no production volumes, realised prices or offtake terms have been published. These will determine cash flow.
- Commodity pricing: management itself flags the lack of a transparent spot market, making contract decisions strategically sensitive.
- Operational ramp-up: sustained run-rates, plant uptime and decline curves need time to prove. Impairment charges (£208,000) remind us subsurface can surprise.
Why this RNS matters for retail investors
This is the pivot point from explorer to producer. The accounts are inevitably loss-making pre-first gas, but the operational groundwork – wells, plant, permitting – is now largely done. If Helix locks in sensible offtake terms and keeps the plant running smoothly, the financial profile should shift as 2026 unfolds.
In short: a cleaner route to cash flow, a favourable market setup, and a relatively simple development plan. The missing piece is hard data on sales and margins. That is where the next RNS updates need to land.
Near-term watchlist
- Offtake agreements: timing, volumes and pricing mechanisms – currently “in advanced negotiations”.
- Production metrics: sustained helium concentration, processed volumes and plant uptime following the February 2026 start-up.
- Capital allocation: pace of drilling new producers at Rudyard versus maintaining balance sheet flexibility.
- Strategic optionality: any progress on evaluating hydrogen potential within the acreage is long term but worth tracking.
- US investor reach: OTCQB listing may help liquidity and broaden the register.
Bottom line from Josh
Helix has ticked the hardest box – first production – at a time when buyers want secure North American supply. The numbers show a sensible investment year backed by equity, a light liability load, and enough cash to bridge to offtake. The share price reaction will hinge on contract terms and early operating performance. Deliver those, and FY2026 could look very different to FY2025.
