Helium One Global shares fell on Wednesday after announcing a delay to its drilling operations in Las Animas County, Colorado, due to adverse drilling conditions.
The company is implementing measures to ensure continued site access during challenging winter conditions. Road improvements, including gravelling operations for access routes to both the Jackson-31 and Jackson-4 well locations, are progressing despite severe winter weather affecting much of the United States.
Helium One shares fell around 7% in early trade before recovering.
The company has adjusted its drilling schedule in response to anticipated adverse weather conditions. Rig mobilisation, originally planned for early February, is now scheduled for the week of February 10.
The drilling campaign will commence with the Jackson-31 SENW 3054 well, followed by the Jackson-4 L4 3154 well. Three additional approved wells are included in the campaign, with their drilling sequence to be determined following the completion of Jackson-4.
Helium One investors who remember long drawn-out delays to their African operations should be encouraged that delays in the US are only due to the weather.
Development of the Pinon Canyon processing plant continues to advance, with ongoing permitting and engineering work proceeding as planned. The company maintains its target for initial gas production in the first half of 2025.
The update follows an announcement from project partner Blue Star Helium (ASX: BNL), which detailed the operational adjustments being made to ensure the project’s successful execution during challenging weather conditions.