Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said development of the Galactica-Pegasus helium project in Colorado is progressing on schedule, with first helium production expected in December.
The company, which holds a 50% working interest in the project, reported that lease agreements have been signed with Kinder Morgan for CO₂ processing equipment.
The project’s gathering system design is nearing completion, with installation and construction mobilisation due to start in October.
The amine unit, leased from Kinder Morgan Treating LP, will process up to 4.2 million cubic feet per day of raw gas, producing as much as 37,000 tons of high-purity CO₂ annually.
Helium One said foundational and preparatory work at the Galactica site is largely complete.
When gas production begins, CO₂ will be removed prior to helium recovery, with the helium-enriched stream processed through the recovery unit. Liquefaction of high-purity CO₂ is scheduled for the first half of 2026 as additional wells are tied in.
Separately, the company also announced that it has made what will be the final conversion (of £3.5 million) under a £10 million (US$13 million) investment agreement with three institutional investors, announced previously in July.
In the update, it said it is now terminating the agreement, with an unconverted balance of £2.125 million to be repaid, along with a 12% termination fee.
"Working with our Galactica Partners, Blue Star Helium, we are delighted to announce that we have reduced our capital spending commitments on production equipment by converting some of these to a leasing arrangement," chair James Smith said.
"This has had the beneficial effect of enabling us to cancel the remaining CLN amounts due to our reduced capital requirements.
"The company remains in a healthy financial position and these changes will in no way impact the development programme in Tanzania or the timetable to first gas in the US, which is expected before the year-end."