AIM-listed Helium One Global, the primary helium explorer in Tanzania with a 50% working interest in the Galactica-Pegasus helium development project in Colorado, USA, notes the Blue Star Helium announcement issued on Friday 30th October regarding the Galactica-Pegasus Project, and highlights the operational update.
Update on the Galactica-Pegasus Project, USA
Helium Production, Sales and Outlook
The Operator reports that six tube trailers have now delivered on a scheduled basis and the Pinon Canyon facility is in its production ramp-up phase, which is expected to continue into 2027. Blue Star reports it has received cash receipts from helium sales of A$0.46 million during the quarter (100% JV basis, Operator share approximately A$0.19 million after royalties and before production taxes). Helium One’s share will be forwarded pursuant to the terms of the Joint Operating Agreement.
The focus is on increasing production volumes and progressing towards sustained commercial operations. Blue Star report that further enhancement of production from existing wells will include looking at the potential to deepen existing production wells to expose more reservoir and further increase flow.
The joint venture (“JV”) plan is to drill three new wells for tie-in to the Pinon Canyon Plant. However, permitting has taken longer than anticipated with the Operator now expecting the relevant regulatory approvals during the December 2026 quarter, and with the Operator expecting drilling to commence in March 2027.
Success at these new wells would further increase raw gas throughput and helium product output. Based on current estimates, the Operator does not expect to need to expand the Pinon Canyon Plant's helium processing capacity to process gas from the additional or deepened wells.
CO2 commercialisation
The Operator remains engaged in discussions with multiple parties. The tie-in of the Jackson-27 well, which carries a CO2 concentration of approximately 98.3%, remains timed to coincide with the commencement of CO2 sales.
Securing a commercial solution for the CO2 product would represent a valuable secondary revenue stream for the Company alongside helium sales. Blue Star report that the commencement of CO2 liquefaction and sales remains subject to finalising commercial arrangements and completing additional plant modifications.
Galactica-Pegasus Expansion
Up to 30 potential drilling locations have been identified within the greater Galactica-Pegasus Project area. All production wells drilled to date are located within the Upper Lyons sandstone. Future infill and expansion drilling will also consider strategies for accelerating and optimising production from the Lower Lyons formation. The JV will assess the potential for establishing further processing facilities at multiple new locations to develop the extensive resources within the broader Galactica-Pegasus Project area.
The JV will evaluate the sequencing and prioritisation of future drilling to maximise efficiency, production scalability, and resource recovery. The Galactica-Pegasus Project is expected to have a production life exceeding 12 years, and Blue Star report the development at Pegasus from 2027 remaining subject to the JV work programme and funding.
Update on the Southern Rukwa Project, Tanzania
The farm-out process for Helium One’s southern Rukwa Helium Project remains ongoing with international advisory firm PVE Consulting Ltd.
In parallel with the ongoing evaluation of the extended ESP testing phase completed earlier this year, the Company has recently completed the successful drilling of three shallow, vertical stratigraphic wells close to the Itumbula helium discovery within the 480 km2 Mining Licence area. These wells, each drilled to less than 100 metres using a local water well drilling contractor, were designed to identify shallow Basement and improve seismic control ahead of further planning for the first cluster of Basement development wells targeting the fractured Basement helium play. The wells were stratigraphic in nature and were not designed for helium testing but have advanced the Company’s understanding of the Basement helium play.
For further information please visit the Company’s website: www.helium-one.com
Source: Helium One Global
