Why small rigs are back in demand

Two kinds of explorer are drilling more wells than they were a year ago, and both tend to use smaller land rigs.

Helium. Iran-linked attacks forced shutdowns in March 2026 at Qatar’s Ras Laffan complex, which produces helium as a byproduct of liquefied natural gas. Qatar accounts for roughly one-third of global helium supply, and the Peterson Institute for International Economics notes that restoring Ras Laffan to full capacity could take three to five years.[1] That has put a premium on helium from other sources, including onshore helium projects in North America.

Natural hydrogen. A 2026 review of natural hydrogen exploration counts around 30 wells planned worldwide in 2026, against about 12 drilled in 2025, with first exploration drilling in Mali, Australia, the US and Canada.[2] Commercial flow outside Mali has not yet been announced, so these are exploration and appraisal wells, which is exactly the work smaller rigs are suited to.

Contract a rig or own one?

Most explorers contract a rig for their first wells. A public example shows why some move to owning one. In 2026 Helix Exploration, a helium company working in northern Montana, agreed to acquire Treasure State Drilling, the contractor whose rig had drilled its Rudyard production wells. According to the company’s announcement, the main asset is a Cardwell KB-150 rated to 8,000 feet, deep enough for its Souris and Red River targets.[3]

The announcement gives three reasons: no contract day rates on future wells, no mobilisation and demobilisation costs because the rig is already on site, and no waiting for a contracted rig to come free in a region where rigs are scarce.[3] In a later interview, CEO Bo Sears said the rig pays for itself after three wells.[4]

Owning is not automatically cheaper. You take on the crew, maintenance, inspections and certification, insurance, and the cost of the rig standing idle between wells. The arithmetic tends to favour ownership when you have a multi-well programme, a remote lease where contract rigs are hard to get, and targets that one rig can reach. Work it through against your own well count before deciding. Oil Rigs Now has no relationship with Helix Exploration; the example is drawn from the company’s public statements.

What to check on a small rig for a helium or hydrogen programme

Everything in our used drilling rig buying guide applies. A gas exploration programme adds a few questions of its own:

  1. Depth rating against your deepest target. Start from the planned total depth, the heaviest casing string and the hole sizes in your well programme, then check the drawworks, mast and substructure ratings against them, with a margin. Horsepower alone does not tell you this.
  2. Mobility. Trailer- and carrier-mounted rigs move between remote leases with fewer loads and less rig-up time. Count the loads and check road and permit limits in the areas you will work.
  3. Drilling equipment, not just hoisting. Some workover rigs are built or upgraded to drill. Confirm the mud pumps, mud system, rotary or top drive and pipe handling are on the rig and in working order.
  4. Pressure control and gas handling. Ask what blowout preventer equipment comes with the rig and when it was last certified. Have your drilling engineer confirm that the pressure-control equipment, gas detection and tubulars suit the gas you expect to encounter.
  5. Certification and records. Inspections on the mast, substructure and hoisting equipment may have lapsed if the rig has been idle. Find out what would need recertifying before it could work.
  6. Title and inspection access. Confirm who owns the rig and check for liens, then have a qualified third-party inspector look at it before you commit.

Rigs of 1,000 HP or less listed on Oil Rigs Now

These listings are rated at 1,000 HP or less. Specifications, location and availability are as shown on each listing page, so confirm current status before you rely on it.

Under 1,000 HP

1,000 HP class

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Sources

  1. Robert Z. Lawrence, “Bring back the helium reserve—before the next shock hits,” Peterson Institute for International Economics, April 21, 2026. www.piie.com
  2. I. Moretti et al., “An overview of natural hydrogen exploration activity worldwide,” Science and Technology for Energy Transition, 2026. doi.org
  3. Helix Exploration PLC, “Agreement to acquire Treasure State Drilling LLC and drilling rig,” company announcement as published by Energy-Pedia. www.energy-pedia.com
  4. Crux Investor, “Helix Exploration (LSE:HEX) - Helium’s Critical Status & Keyes Liquefier Drive Next Growth Phase” (video interview with CEO Bo Sears). www.youtube.com