DealsApr 27, 2026, 07:02 AM
USEG Secures 5-Year Helium Sales Agreement for Montana Plant
AI Summary
U.S. Energy Corp. (USEG) entered into a 5-year Helium Sales Agreement with an investment-grade industrial gas company. The agreement covers 100% of the contained helium produced at USEG's new purification plant near Oilmont, Montana, up to 1.2 million cubic feet per month. The fixed base price is $285.00 per MCF, with annual adjustments based on CPI-U, and the counterparty handles all downstream costs. This agreement is a key long-term offtake for the company's Big Sky Carbon Hub, with initial sales anticipated in Q1 2027.
Key Highlights
- Secured Helium Sales Agreement for 100% of contained helium from Montana plant.
- Maximum sale quantity of 1.2 million cubic feet per month.
- Initial term of 5 years, commencing around March 1, 2027.
- Fixed base price of $285.00 per thousand standard cubic feet (MCF).
- Price adjusted annually by CPI-U starting March 1, 2028.
- Counterparty responsible for pickup and all downstream costs.
- Agreement includes price redetermination and right of first refusal after 3 years.