Helium One Global Ltd Galactica-Pegasus Project Update

RNS Number : 4110M

Helium One Global Ltd

15 November 2024

 

15 November 2024

 

 

Helium One Global Ltd

("Helium One" or "the Company")

 

Galactica-Pegasus Project Update

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to provide the following update on the Galactica-Pegasus project in Las Animas County, Colorado, USA ("the Galactica Project") operated by Blue Star Helium (ASX: BNL) ("Blue Star"). The Company completed a Farm-in Agreement with Blue Star on 4 November 2024.

Highlights

·    Colorado Energy and Carbon Management Commission ("ECMC") has approved permits to drill five additional helium development wells at the Galactica/Pegasus project

·    The five additional wells, together with the successful State 16 well, which is suspended ahead of tie-in to production, are expected to form part of the initial gas gathering into the Galactica helium production facility

·    Drilling planned to start Q4 2024

 

Lorna Blaisse, Chief Executive Officer, commented:

"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."

 

Galactica-Pegasus drilling permits approved

The Colorado ECMC has granted permits to drill five additional helium development wells (Jackson-27 SWSE, Jackson-31 SENW, Jackson-29 SWNW, Jackson-2 L4 and Jackson-4 L4) at the Galactica/Pegasus project.  Drilling is planned to start this quarter.

These wells are located on Galactical Pegasus OGDP I (see RNS release dated 17 October 2024, Five Additional Helium Well Locations Approved Galactica-Pegasus). The wells are shown on the map below.

The newly approved wells are located to the south and southwest of the successful State-16 development well, which is suspended for tie into production, and are expected, together with State-16, to form part of the initial gas gathering into the Galactica helium production facility which Blue Star is developing with the Company.

Currently, Blue Star has one completed development well waiting for tie-in to production and an inventory of fifteen helium development well locations approved at Galactica/Pegasus including Form 2 approvals for the drilling for eight development wells including those the subject of this announcement plus State-09, -35 and -36 helium development wells.

​

Historic Galactica/Pegasus previous drilling

Blue Star had a successful exploration campaign at the Galactica and Pegasus prospects (JXSN wells) followed by the first successful development well, State16 which was drilled in June 2024.

Independent engineering consultants advised Blue Star that State-16 is capable of a maximum rate of 441 thousand standard cubic feet per day ("Mscf/d") with more stabilised rates constrained for production optimisation projected to be between 250 Mscf/d and 350 Mscf/d.  The well tested 1.9% helium and logs identified 96+ feet of gas column in the Lyons Sandstone.

Four wells (JXSN#1 - JXSN#4) drilled across the two prospects resulted in four discoveries with gas bearing columns of up to 230 feet and helium content up to 6% and flow rates as high as 412 Mscf/d.

The third-party owned Red Rocks helium project adjoins Blue Star's Galactica project (see map above). Red Rocks produces raw gas into an IACX-operated helium recovery plant and sells helium gas into the market.  Development and operation of Red Rocks further supports the positive outlook for the Galactica project.

 

 

For further information please visit the Company's website: www.helium-one.com   

 

Contact

Helium One Global Ltd Lorna Blaisse, CEO Graham Jacobs, Finance and Commercial Director	[phone]
Panmure Liberum Limited (Nominated Adviser and Joint Broker) Scott Mathieson Nikhil Varghese	[phone]
Zeus Capital Limited (Joint Broker) Simon Johnson Louisa Waddell	[phone]
Tavistock (Financial PR) Nick Elwes Tara Vivian-Neal	[phone]

 

 

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences across two distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.

The Rukwa and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. These assets lie near surface seeps with helium concentrations ranging up to 10.4% helium by volume. All Helium One's licences are held on a 100% equity basis.

The Company's flagship southern Rukwa Project is located within the southern Rukwa Rift Basin covering 1,664km² in south-west Tanzania.  This project is considered to be entering an appraisal stage following the success of the 2023/24 exploration drilling campaign, which proved a helium discovery at Itumbula West-1 and, following an extended well test, successfully flowed 5.5% helium continually to surface in Q3 2024.

Following the success of the extended well test, the Company has now flowed significant quantities of helium to surface and has filed a Mining Licence application with the Mining Commission of the Tanzanian Government.

The Company also owns a 50% working interest in the Galactica-Pegasus helium development project in Las Animas County, Colorado, USA. This project is operated by Blue Star Helium Ltd (ASX: BNL).

Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

 

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