As alluded to here, they still screwed long term holders with the blunder of drill that is still capped and 7+ Mil down the drain.. Which leads us to low ROI for holders even on this successful drill campaign.
Quote:
A marketing and offtake strategy is being developed by the JV to establish operating partners across the entire helium supply chain, securing distribution partners for transportation, pursuing direct sales to end-users, targeting buyers who prioritise continuity and security of supply and aiming for long-term agreements" - *, June 10, 2025
Which then comes out of a bit of reading....
Cimarron Midstream.
.
Based on their company statements and industry reports, Cimarron Midstream's track record is in helium processing and recovery, not direct sales of the gas.
.
Their business model is to provide "midstream services." In the energy industry, this means they operate as the critical link between the upstream producers (like Blue Star Helium, who own the rights to the gas) and the downstream market.
Here’s a breakdown of their role:
.
* Helium Recovery: Cimarron designs, builds, and operates the processing plants (like Pinon Canyon) that take the raw natural gas stream from the wells and use specialized technology to separate and extract the helium.
.
* Providing a Service: They are essentially a service provider hired by gas producers. The producer pays Cimarron to process their gas and recover the valuable helium contained within it.
.
* Client Sells the Gas: The recovered helium is then owned by the client (Blue Star Helium, in this case), who is then responsible for marketing and selling it to industrial gas companies or other end-users.
.
Think of it like a farmer who grows oranges but hires a factory to squeeze them into orange juice. The factory provides the juicing service, but the farmer owns and sells the final juice. Similarly, Cimarron Midstream "squeezes" the helium out of the natural gas for their clients, who then sell the final product.
https://cimarronmidstream.com/news/
(20min delay)