Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has reported strong initial gas flow rates and encouraging helium concentrations at its Jackson-29 well, part of the Galactica-Pegasus development project in Colorado.
The company, which holds a 50% working interest, said on Tuesday that the well had flowed naturally during drilling and upon reaching total depth. Flow rates have since risen to more than 320,000 cubic feet per day.
Based on engineering studies and observed performance, projected stabilised flow rates are expected to range between 350-450,000 cubic feet per day, with a maximum potential of 550,000 cubic feet. The flow will be constrained to optimise production.
The well reached a total depth of 1,183 feet in the Upper Lyons Formation, encountering gas-saturated sandstone without any presence of water.
Wireline logs confirmed good quality reservoir characteristics and strong pressure build-up post-testing indicated high permeability and effective reservoir communication.
The Galactica project was discovered by Blue Star Helium in 2022 and forms part of a broader development effort across the Galactica and Pegasus fields. Helium One is participating in the venture through a farm-in agreement, under which it will fund the first $450,000 of the well’s cost.
The Red Rocks project, owned by a third party and located adjacent to Galactica, is also under development. Its proximity is expected to support the commercialisation of the wider Galactica project.
In a separate announcement, Helium One said a construction permit has been secured for a helium and carbon dioxide processing plant in Las Animas County, Colorado, advancing its Galactica-Pegasus joint venture with Blue Star Helium.
The approval, granted on 15 April, allows for the development of the Pinon Canyon Plant, a critical element of the project. County commissioners endorsed the plan, citing suitable location, infrastructure access and land-use compatibility