Helium One said its Galactica-Pegasus helium development project in Colorado has completed the first stage of its development campaign, with six wells now tied into the Pinon Canyon facility and initial helium sales agreed.
The AIM-listed explorer, which holds a 50% working interest in the project, provided the update following an announcement from operator Blue Star Helium.
The Jackson-2 and Jackson-4 wells have been installed, tested, and integrated into the facility’s gathering system, joining four other wells already connected. The plant has been producing gas intermittently into an on-site tube trailer during a maintenance and optimisation phase and is now transitioning to round-the-clock operations following the completion of automation and system upgrades.
First helium sales have been agreed at spot pricing, with a second tube trailer expected on site shortly. Helium One said they are working towards 24/7 operations soon, which should translate to steady cash flows.
The commencement of helium sales comes at a time when the global helium market is facing structural supply disruptions, particularly from instability in Middle Eastern supply routes, driving up demand for domestically sourced US supply.
Qatar is the second-largest producer of helium after the USA, and regional disruption has spurred predictions that prices will rise to $2,000 per thousand cubic feet if the conflict isn’t resolved soon.
Blue Star is pursuing a mix of spot sales and longer-term offtake contracts with multiple parties to maximise value as production ramps up.
On the CO₂ side, liquefaction remains on track for the first half of 2026. The tie-in of the Jackson-27 well, which has a CO₂ concentration of 98.3%, is being timed to coincide with the start of CO₂ sales, adding a second revenue stream to the project.