Helium One Global shares jumped on Tuesday as anticipation around its US helium operations gathers momentum.
The company recently modified its winter drilling schedule due to poor weather conditions across North America. The company said the drill rig would be mobilised this week, and today’s rise can be attributed to expectations of an update from the company on how the recommencement of operations has gone.
After weeks of the share price steadily ebbing away, renewed interest in the stock on Tuesday sent shares 15% higher. The 1p mark still remains a crucial resistance level, with profit takers more than happy to book gains when the price creeps above it.
Helium One, in partnership with Blue Star Helium, is developing a project in Colorado that is expected to achieve its first gas production in 2025.
Investors will be eager to learn whether rig mobilisation went as planned. The company said workers are laying gravel on access roads to the Jackson-31 and Jackson-4 locations, enabling operations to continue through Colorado’s severe winter conditions, which have recently affected much of the United States. After lengthy delays at their African projects in 2023, Helium One investors should be accustomed to waiting for the drill bit to start spinning.
The drilling campaign will initially target the Jackson-31 SENW 3054 well, followed by Jackson-4 L4 3154. Three additional wells have received approval, with their drilling sequence to be determined following the completion of Jackson-4.
An update on the Pinon Canyon processing plant also provided reason to be optimistic. Development continues on the Pinon Canyon processing plant, which remains on track to begin gas production in the first half of 2025. The engineering and permitting work for the facility is progressing as planned.