Helium One Global Ltd's (AIM:HE1, OTCQB:HLOGF) share price rose 2.5% after the company confirmed drilling has started at Jackson-31, part of its Galactica helium project in Colorado. The well is targeting the Lyons sandstone formation, a known gas reservoir, with results expected to provide key data on the site’s helium potential.
Helium One, which holds a 50% stake in Galactica, said drilling is progressing as planned, with equipment in place and preparations underway to reach target depth. Once complete, tests will measure gas flow and pressure to estimate how much helium the well can produce.
Once drilling and testing operations at Jackson-31 are completed the rig will move to drill the Jackson-4 well.
Panmure Liberum noted: "The remaining three wells in the drilling campaign will be drilled thereafter, although the exact sequence of wells is yet to be announced. Investors will keenly await news around the progress of the drilling with the upcoming campaign set to deliver maiden production for [Helium One] in 2025."
The broker repeated its 'buy' advice and 3.6p target - a significant premium to the current price of just over 1p.