New Era Helium (NEHC) provided an update on its operational progress and development strategy. NEH is actively working with its Pecos Slope Field midstream gatherer and processor following a recent change in both its ownership and management. As a result of ongoing negotiations and delays in securing project financing during the de-SPAC process, the construction timeline for the Pecos Slope Plant has been extended. Completion of the Pecos Slope Plant is now expected to coincide with the commencement of plant operations in Q4, in line with NEH’s updated development and financing milestones. NEH’s goal is to have the plant operational and project financing secured within the next 90 days, subject to the successful conclusion of ongoing discussions and approvals. Management continues to evaluate all options to accelerate this timeline should an expedited agreement be reached with its midstream gatherer and processor or should an alternative development path emerge. NEH has initiated contingency planning for helium offtake agreements in parallel with ongoing construction efforts and timing. The company remains in active communication with its existing counterparties, while pursuing additional commercial flexibility to secure long-term value for future production. In the helium sector, NEH is only one of only two companies trading on a major U.S. exchange with both proved and probable helium reserves positioning NEH as a uniquely de-risked opportunity within the helium investment landscape. While NEH properties are currently producing helium, the Company does not receive payment under its existing marketing agreement. That agreement has reached the end of its primary term and is now continuing on a month-to-month basis. As previously mentioned, NEH is actively engaged in discussions with the midstream gatherer and processor for the Pecos Slope Field and remains optimistic that a resolution can be reached to enable access to its existing helium production. Securing access to the company’s current helium production would generate additional revenues to complement its current natural gas revenues. While there is no guarantee that NEH will reach an acceptable agreement with its current midstream operator and processor, the company remains fully committed to executing its planned vertical integration model to unlocking the value of its helium production.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on NEHC: