Helium One shares were higher on Thursday after the company provided an update on its Colorado operation and approval from authorities to begin exploration activities.
The Colorado Energy and Carbon Management Commission (ECMC) has approved five new helium development well locations at the Galactica-Pegasus project in Las Animas County, Colorado.
The newly approved wells, located south and southwest of the successful State-16 well, are expected to contribute to the initial gas gathering for the jointly developed Galactica helium production facility. This development satisfies a crucial condition precedent to the farm-in agreement between Helium One Global and Blue Star Helium covering Galactica facility.
Drilling at the Galactica Project is anticipated to commence in Q4 2024, subject to final drilling permit approvals. The project builds on Blue Star’s previous successful exploration campaign, which included the State-16 well capable of producing up to 441 Mscf/d of gas with 1.9% helium content.
Investors will be pleased the approvals further strengthen the diversification of Helium One’s asset base, expanding its portfolio beyond its primary Tanzanian projects. Both companies are currently finalising the definitive governing agreements for the farm-in, with further announcements expected in the near future.
“This is a positive advancement for the Galactica-Pegasus project and we’re very much looking forward to working with the Blue Star team and commencing the drilling phase for this development,” said Lorna Blaisse, Chief Executive Officer.
“We look forward to providing further updates on this and our operations in Rukwa in due course.”