Beneath the Four Corners Plateau lies a resource long overshadowed by hydrocarbons yet poised to reshape investor strategies. In a landscape where exploration risk often dominates headlines, a fresh approach is unfolding in Arizona’s Holbrook Basin, promising a streamlined path from pump to pay.
General Helium’s strategy hinges on redeploying proven assets rather than chasing speculative discoveries. By focusing on existing wells and joint-venture recompletions, the company sidesteps the downtime and unpredictability of exploration. Two early-stage projects already sit on dedicated acreage, one spanning 4,674 gross acres with two discovery wells, the other covering nearly 17,000 acres under eight drilling licences. Both are positioned near historically high-yield formations, as identified by proprietary electro-seismic analysis, and are designed to enter commercial production in early 2025. This near-term timeline underscores a rapid cash-flow thesis seldom found in resource plays marketed on promise alone.
Over 46,000 acres of leasehold interests and joint ventures grant a 50% working stake in a region often dubbed the Saudi Arabia of helium. Contemporary testing in adjacent fields has revealed helium concentrations north of eight per cent, setting a clear benchmark against global comparators where yields routinely lag far behind. In one key joint venture with a major power company, existing wells have registered helium content of around six per cent, with initial output expected to average about 2,000 Mcf per day. Such figures not only validate the basin’s inherent potential but also illustrate how layering pay zones can elevate long-term recovery profiles.
Rather than relying on conventional seismic approaches, the business employs a Biot Wave electro-seismic technique that discerns both structural features and gas composition ahead of drilling. This innovation reduces dry-hole risk and optimises well placement, ensuring capital is directed towards proven pockets of helium. In an industry where every drilling rig can represent millions of pounds in expenditure, precision becomes a cornerstone of value preservation.
While helium soared to unprecedented price levels over recent years, doubling in cost as traditional supplies struggled to keep pace, General Helium has secured early commitments to capture this upside. A long-term take-or-pay offtake agreement with a NYSE-listed cryogenics firm locks in minimum pricing around $550 per thousand cubic feet for compressed helium, with the final contract expected to be executed upon commissioning of the processing unit in the second quarter of 2025. That alliance not only stabilises revenue assumptions but also aligns production incentives with an established market partner, mitigating counterparty uncertainties that can erode margins elsewhere in the sector.
Looking beyond the first two ventures, the company has already flagged 26 additional drill targets, six of which hold the necessary permits to proceed. This development pipeline illustrates the scalability of the model: each successive recompletion leverages the same infrastructure and secured offtake framework, potentially accelerating payback periods and compounding free cash flow. Management’s background in oil and gas provides a depth of operational expertise, which in turn supports negotiations with processing plant manufacturers and financiers to fund the build-out.
From aerospace to semiconductor fabrication, helium’s critical applications span industries where chilling, inert atmospheres and ultra-pure conditions are non-negotiable. Unlike many helium projects that treat it as a byproduct of hydrocarbon extraction, the Holbrook Basin’s gas stream is predominantly nitrogen and helium, with minimal contaminants. This purity not only simplifies processing but also enhances the yield per unit of gas produced, translating directly into more efficient resource conversion and potentially lower operating costs.
General Helium Inc is an emerging helium production company led by experienced oil and gas industry veterans. Focused on developing existing resources rather than exploration, GH prioritizes generating free cash flow.
