Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has confirmed free gas at the State-9 well, part of the Galactica project in Colorado.
The well was drilled down to a total depth of 1,225 feet, and, according to wireline logs, encountered ‘free gas’ and 60 feet of gas-saturated sands in the Upper Lyons Sandstone Formation.
It said the well flowed gas naturally during drilling and at total depth. No water was encountered during drilling.
Gas samples are now being analysed for helium and CO₂ concentrations.
Meanwhile, the well head is being installed ahead of pressure readings and flow testing.
"This is another encouraging update and investors will be keen to hear when the wells can be tied into infrastructure and brought onto production," analysts at stockbroker Panmure Liberum said in a note.
Helium One owns a 50% interest in the project, and, in line with its farm-in deal, its funding the first $450,000 of the well costs.