New Era Helium Inc (NEH), has secured a significant regulatory victory, receiving approval for approximately 120 miles of Rights-of-Way (ROW) from the U.S. Department of the Interior’s Bureau of Land Management (BLM) Pecos District Office. This crucial milestone paves the way for the company to commence its infrastructure buildout within the Pecos Slope Field of the Permian Basin within the next two weeks. This development underscores NEH’s commitment to its midstream business unit and its focus on delivering Responsibly Sourced Gas (RSG) and its trademarked Responsibly Sourced Helium (RSH).

The approved ROW will enable NEH to replace the existing, outdated gathering infrastructure, which dates back to the early 1980s. The current third-party owned and operated system suffers from significant inefficiencies, including an estimated 25% Field Loss and Unaccounted For (FL&U) gas. This substantial loss not only impacts NEH’s bottom line but also poses significant environmental concerns due to the venting of methane (CH4), a potent greenhouse gas.

To illustrate the environmental impact, NEH highlighted that its current daily production of approximately 4,000 thousand cubic feet per day (Mcfp/d), when subjected to a 25% loss, results in approximately 30,000 thousand cubic feet (Mcf) of methane vented monthly. This is estimated to be equivalent to the carbon dioxide (CO2) emissions produced by roughly 37,905 passenger vehicles annually. The company emphasized that these figures only represent their production and do not account for the total volumes handled by the aging system.

By establishing its own modern infrastructure through its wholly owned subsidiary, NEH Midstream LLC, aims to drastically minimize these methane emissions. This strategic move is central to NEH’s goal of achieving RSG certification for its natural gas production and enhancing the value of its helium as RSH™. Recognizing that approximately 95% of the world’s helium is produced in conjunction with natural gas, NEH sees a significant opportunity to become an industry leader in reducing emissions and potentially generating Methane Performance Certificates (MPCs), similar to carbon credits.

The BLM has granted NEH an initial six-month window to temporarily shut in its wells during the infrastructure installation, should the company choose to utilize this option. Furthermore, NEH is actively collaborating with the New Mexico State Land Office to ensure full compliance with state regulatory standards. The company anticipates potential regulatory updates within the next 90 days that could further streamline pipeline installations, potentially leading to reduced project costs and timelines.

Simultaneously, NEH is finalizing design optimizations with its plant manufacturer, Arjae Design Solutions. The focus of these optimizations is to enhance the purity of the helium produced at the plant’s tailgate. The company reaffirmed its commitment to commence helium sales in late Q4 2025, contingent upon the timely progress of the infrastructure construction. NEH has promised to provide further updates on its progress in the coming weeks.