Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) is a ‘buy’ ahead of delivering its maiden production in the first half of 2025 - that’s according to Panmure Liberum.
The stockbroker pitches a 3.6p price target for Helium One, versus a current market price of 1p.
Today, Helium One told investors it has now spudded the Jackson-4 well at its Galactica helium project in Colorado. It will be drilled down to the Upper Lyons Formation, where wireline logging and flow testing will determine production potential.
It followed the drilling and initial testing of the Jackson-31 well, which confirmed free gas in the Upper Lyons Sandstone Formation. The well flowed gas naturally, and further testing is planned.
“[Jackson-4] is the second well in the 5 well development drilling programme, with the well targeting the Lyons formation,” analysts at Panmure Liberum said in a note.
“Once the bit has reached TD, wireline logging will be run followed by pressure and flow testing.
“Successful testing would see the well completed and tied into production facilities nearby.”
The broker added: “Investors will keenly await news”.