Helium One has announced positive initial flow testing results from its Jackson-31 development well at the Galactica-Pegasus project in Colorado, USA, where it holds a 50% working interest.
The Galactica-Pegasus project is undergoing intensive exploratory work with Helium One releasing a string of updates throughout February and March.
The latest update sent Helium One shares over 5% higher on early trade on Friday.
Key Results
Flow testing has demonstrated increasing natural gas flow rates, reaching approximately 250 Mcfd of total gas. Strong pressure build-up following testing confirms high permeability and good reservoir communication within the formation.
The well, which reached a total depth of 1,210 feet, encountered the Lyons Sandstone Formation at 1,153 feet and was completed 57 feet into the Upper Lyons Sandstone.
Based on previous engineering analysis and observed flow rates, projected stabilised flow rates constrained for production optimisation are expected to be between 300-400 Mcfd, with a maximum potential of 500 Mcfd.
Helium Concentration
Initial laboratory analysis of gas samples from Jackson-31 showed helium concentration up to 2.2% air corrected. Based on equilibrated samples from the nearby State-16 well, which showed a helium concentration of 2.17%, the expected reservoir helium concentration at Jackson-31 could equilibrate to approximately 2.3% to 2.5%.
Although helium concentrations of around 2% aren’t the highest found in the United States, they would certainly be economically viable.
Well testing and sampling will continue throughout the current drilling campaign as development planning progresses.