Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has started drilling at the sixth well in the Galactica development campaign in Colorado.
The State-9 SWSE 3054 well will be drilled into the Upper Lyons Formation gas reservoir.
Following drilling, wireline logging will be undertaken along with flow and pressure testing at the wellhead to assess production potential.
The State-9 well is expected to be completed and tied into production infrastructure.
Helium One holds a 50% working interest in the development project and will fund the first $450,000 of the well costs.
UK-based stockbroker Shore Capital repeated a ‘buy’ recommendation, with a 2.6p price target (versus today’s share price of 0.83p).
“Investors will be encouraged by the news and will look forward to further updates as the project moves nearer to production,” the broker said in a note.