Helium One Global has successfully completed the farm-in agreement with Blue Star Helium for the Galactica-Pegasus project in Colorado, USA. The arrangement sees Helium One securing a 50% stake in the promising helium development project for a cash consideration of $1.5 million, alongside a commitment to fund six development wells.
The Galactica-Pegasus field, initially discovered by Blue Star in 2022, has holds gas columns of up to 230 feet containing between 2% and 6% helium. Recent developments will be particularly encouraging for investors, with the State-16 development well drilled in June 2024, achieving a flow rate of 285 Mcf/d with 1.9% helium content.
Looking ahead, independent reservoir engineering suggests future development wells could achieve initial production flow rates ranging from 250 to 615 Mcf/d. The development programme is progressing well, having secured approval from the Colorado Energy and Carbon Management Commission for the oil and gas development plan. Drilling operations are scheduled to commence in Q4 2024, with first helium production anticipated in the first half of 2025.
“We’re very pleased to have completed this agreement with Blue Star and anticipate positive results from the upcoming development wells as the project advances into the production phase. This project provides Helium One with the opportunity to diversify its helium portfolio and benefit from production and revenue from first helium gas in H1 2025,” said Lorna Blaisse, Chief Executive Officer, Helium One.
“In Tanzania we await the official approval from the Ministry of Minerals having submitted our comprehensive Mining Licence application for Helium One’s southern Rukwa Helium Project, encompassing the Itumbula and Tai areas for commercial development. We look forward to updating our shareholders and stake holders in due course.”