StockBox Market Pulse: Four Ways to Access the Helium Growth Story

Dear Reader,

It might not be the first commodity investors think about, but the case for helium is becoming increasingly compelling.

The key thing about the gas is it’s absolutely unique; there is no substitute for its combination of high thermal conductivity and chemical inertness.

That means helium isn’t just used to inflate balloons – it’s an irreplaceable component across a wide range of large, and more importantly, growing global industries.

Indeed, from semiconductors, fibre-optic cables and electric vehicles, through to specialist medical equipment such as MRI scanners, and even space programmes and rocket fuel systems…

Helium plays a critical role across many of the technologies sitting at the heart of the modern economy.

Moreover, that growing importance is now feeding directly into demand:

• Global helium consumption is forecast to grow at around 6% CAGR between 2023 and 2030, rising from roughly 5.8 Bcf to around 8.7 Bcf.

Helium demand by end use (Source: Helix Exploration; AKAP Energy)

There is, however, a problem. And this is where the investment opportunity begins to emerge.

While helium is becoming more sought after than ever, supplies remain tight.

The gas is not mined, and it cannot be manufactured. And today, most global supply is produced as a low-grade by-product of oil and gas production.

Because it is primarily a secondary product, scaling supply to meet rising demand is extremely difficult and largely outside the control of the helium market itself.

As a result, dedicated primary helium projects are increasingly being recognised as the only reliable way to secure future supply, with that shift already starting to change how the market values new helium discoveries and development projects.

As awareness of supply risk grows, and as helium’s strategic importance increases, companies capable of bringing new, dedicated helium production online are likely to attract increasing market attention.

So, with this in mind, here are a few names offering early exposure to this emerging investment trend…

Mendell Helium (Market Cap: £4 million)
Mendell holds interests across two established helium regions in Kansas.

One is the world-renowned Hugoton field, where helium has been produced for more than 90 years. The other is Fort Dodge, a smaller but fast-emerging helium hotspot. Mendell is currently producing from its flagship Rost well at Fort Dodge, with its most recently recorded flow rate equating to roughly $1.4 million of annual helium production.

This week, the company announced new funding backed by a local US investment group to drill a twin well on the same licence as Rost, using a larger casing design that could support higher production rates. In addition, Mendell has agreed in principle with a local well owner to dewater and recomplete an existing shut-in well, potentially adding further production capacity.

With additional drilling and well optimisation activity planned, the company appears positioned to grow production and revenues through the year. Given Mendell’s current market cap of around £4 million, there is clear scope for a re-rate if production scales as planned and the wider portfolio delivers further upside.

Check out our latest interview with the company here for more.
 
Pulsar Helium (Market Cap: £134 million)
Pulsar is the largest of our picks and is firmly in growth mode.

The company has been actively drilling a series of appraisal wells (Jetstream #1 through #5) at its flagship Topaz project in Minnesota, with drilling of Jetstream #6 now set to begin. Results to date have exceeded expectations, confirming a laterally extensive helium-rich gas reservoir across the project area.

The wells have delivered some of the highest helium concentrations ever reported in a natural gas system, with measured grades of up to 14.5% helium. For context, concentrations of around 0.3% are generally considered commercially viable. The presence of Helium-3, a rare and high-value isotope, has also been confirmed, adding potential additional upside.

Flow testing and follow-up work over the coming months should provide further clarity on the potential at Topaz. The results, alongside the collection of geological, pressure and gas composition data, will be used to inform future resource estimation, production modelling, and appraisal planning – all big milestones for the company.

Alongside this, Pulsar continues to expand its footprint around the project and into new helium prospective areas, creating additional potential value growth opportunities.

Pulsar has already established momentum in the market, and if it continues to deliver as it has been, then more upside is certainly achievable.
 
Helix Exploration (Market Cap: £49 million)
Helix is focused on discovering and developing economically viable primary helium and hydrogen resources in northern Montana’s Helium Fairway. The company’s immediate priority is commercialising its Rudyard project, where it is targeting up to 3,800 Mcf/day at around 1.2% helium.

Helix estimates Rudyard could generate $115–$220 million in net revenue over a roughly 12.5-year field life, and in an update earlier this month, CEO and helium industry veteran Bo Sears said the company is entering the final stages ahead of first helium production.

Processing plant preparation is nearing completion, re-entry of a key well is underway (and likely now complete), and helium offtake discussions are progressing, with agreements expected following the start of production.

With multiple operational milestones approaching, the company appears to be moving steadily towards a key period of shareholder value creation.
 
Helium One (Market Cap: £42 million)
Helium One is advancing steadily across two flagship helium projects.

The first is the Southern Rukwa project in Tanzania, where a 2C gross contingent helium resource of 296 mmscf has been defined at the primary Itumbula discovery, alongside 709 mmscf of additional prospective resources across the wider licence area. Rukwa has now moved into full appraisal and development, with an extended well test at Itumbula West successfully flowing 5.5% helium to surface during Q3 2024.

The second is the Galactica-Pegasus project in Colorado, held in a 50:50 JV with operator Blue Star Helium. The field is emerging as a potential new source of domestic US helium supply, with first helium production now achieved, additional wells expected online in 2026, and ongoing work to stabilise production throughput.

Importantly, Blue Star is now targeting long-term offtake agreements to support a planned production ramp-up, opening the door to meaningful revenue growth as output scales.

Best wishes,
The StockBox Team