Helium One has reported the first sale of helium from the Pinon Canyon plant in Colorado, with the maiden production tube trailer sold and dispatched, concluding the early production commissioning and optimisation phase at the Galactica-Pegasus project.
The AIM-listed company holds a 50% working interest in the development, operated by ASX-listed Blue Star Helium, which announced the milestone today.
Blue Star said plant uptime and production fill rates have improved recently following longer periods of steady-state operation, and a new tube trailer is already on site being filled under the offtake agreement announced in June.
Output is expected to continue growing through a planned production ramp-up, including debottlenecking of the plant and gathering system, drilling additional development wells, and deepening existing wells to increase flow.
Helium One CEO, Lorna Blaisse, said: “This represents a significant milestone for Helium One, with the Company now generating its first revenues from the Galactica-Pegasus joint venture project. This achievement validates our strategic decision to diversify our portfolio and provides an important foundation for future growth. We are pleased to continue working closely with Blue Star Helium as the Joint Venture.”
With shares trading near 52-week lows, investors would have hoped today’s announcement would boost the stock. No such luck with Helium One shares trading around 2% lower at the time of writing.