“The New Gold Rush” Update: Latest on Helium Plans in NC Montana

We had a couple folks asking, and we threw the question out on the radio last week: Hey, what's the latest on the helium play near Shelby, Montana?

Back in May of 2023 I was in Shelby, Montana ahead of the big centennial celebration of the Dempsey-Gibbons boxing match. That's when we told you about the helium deposits near Shelby and "the new gold rush" garnering excitement in North Central Montana.

So what's happening with that? Great question.

Mac McDermott is on the board for the Montana Petroleum Association and has MCR, LLC in Shelby. He shared with a recent article "that has breathed new life into Avanti Helium." He tells us there are now three companies searching for Helium on the Hi Line.  Avanti, Thor, and Helix are the three companies he mentioned while adding, "I’m optimistic."

The article he shared was this one from CNW Group: Avanti Helium Secures Foundational Offtake Agreement, Marking Major Milestone Toward Production

The landmark agreement marks a significant commercial milestone for Avanti as the Company is moving towards helium production at its Sweetgrass Helium Recovery Unit (HRU) in Montana. Under the terms of the agreement, which includes a three-year initial term with renewal options, the buyer has committed to a minimum monthly volume representing approximately 33% of initial plant output and 25% of the production volume following the facility's planned expansion.

 

Click here for the full press release. For more information, you can also visit www.avantihelium.com

Back in 2023 we caught up with Shelby Mayor Gary McDermott and longtime Shelby attorney Don Lee who both have extensive experience in the oil and gas industry. Here's part of what we shared back then:

Don Lee told us that helium will be "the new Gold Rush" for Shelby and Toole County.

Don Lee: Well, some people call it the new gold rush, because worldwide- short supply. Right after World War I, the federal government nationalized helium. And they had a large helium reserve out of Amarillo, Texas. About 6,7, 10 years ago they realized that helium reserve was being depleted and they decided to have an open auction and they did...to make a long story short, helium is the second most abundant element in the universe. It's short supply. It's hard to find. Yes, there are three companies now that are actively exploring for helium and Toole and Liberty Counties.

How is helium captured and distributed similarly or differently than oil and gas?

Don Lee: You drill for it just like you drill for oil and gas, except you drill deeper. You drill to the basement. You drill to the granite. Because helium is decomposed uranium and thorium that comes from the granite, from the crust of the earth.

How profitable could helium be for Montana's Golden Triangle?

Don Lee: Give you an example of what it's worth. Let's say that natural gas is going, combustible natural gas- methane- that you burn in your furnace, goes for we'll say $2.15 cents per 1000 cubic feet. Refined helium will go anywhere from $600 to $1,000 an Mcf, per thousand cubic feet. That's why they call it the new Gold Rush.