Helium One reports progress at Galactica-Pegasus

15th Nov 2024 12:59

(Sharecast News) - Exploration company Helium One Global announced a number of developments at the Galactica-Pegasus project in Colorado's Las Animas County on Friday.

The AIM-traded firm said the project, operated by the ASX-listed Blue Star Helium under a recently-completed farm-in agreement, was progressing, with regulatory and operational milestones achieved.

It said the Colorado Energy and Carbon Management Commission (ECMC) had approved permits for five additional helium development wells at the Galactica-Pegasus project.

Drilling for the wells - Jackson-27 SWSE, Jackson-31 SENW, Jackson-29 SWNW, Jackson-2 L4, and Jackson-4 L4 - was set to start in the fourth quarter.

The new wells, located near the successful State-16 well, would be integrated into the initial gas gathering system feeding the Galactica helium production facility.

Helium One said the State-16 well, which encountered a 96-foot gas column in the Lyons Sandstone with helium content of 1.9%, was capable of maximum flow rates of 441 thousand standard cubic feet per day, and was suspended pending connection to production.

The Galactica and Pegasus prospects had previously yielded significant discoveries, the firm noted, with four wells drilled during earlier campaigns identifying gas-bearing columns up to 230 feet with helium content as high as 6% and flow rates reaching 412 thousand standard cubic feet per day.

Helium One said the adjoining Red Rocks helium project, operated by a third party, demonstrated the viability of helium recovery and sales in the area.

It noted that its successful production provided additional confidence in the commercial prospects for Galactica-Pegasus, which benefited from proximity to established infrastructure and market demand.

"These approvals enable the drilling phase to commence, and we very much look forward to entering this partnership with the Blue Star team and starting this exciting drilling programme this quarter," said chief executive officer Lorna Blaisse.

At 1307 GMT, shares in Helium One Global were down 2.88% at 1.02p.

Reporting by Josh White for Sharecast.com.