Helium One Global (AIM:HE1) on Monday reported cash receipts of A$0.46m from helium sales at its Galactica-Pegasus project in Colorado during the quarter, as the Pinon Canyon processing plant enters a production ramp-up phase expected to run into 2027.
The London-listed company, AIM's primary helium explorer in Tanzania, holds a 50% working interest in Galactica-Pegasus, operated by Blue Star Helium (ASX:BNL); the receipts figure is on a 100% joint venture basis, with the operator's share after royalties and before production taxes at approximately A$0.19m, and Helium One's share to be forwarded under the Joint Operating Agreement.
Six tube trailers have now been delivered on a scheduled basis from the plant, which the operator said has stabilised output and is focused on increasing volumes toward sustained commercial operations, including examining the potential to deepen existing production wells to expose more reservoir and lift flow rates.
The joint venture's plan to drill three new wells for tie-in to the Pinon Canyon plant has slipped: permitting is taking longer than expected, with Blue Star now anticipating regulatory approvals in the December quarter and drilling starting in March 2027.
The operator does not expect to need to expand the plant's helium processing capacity to handle gas from the additional or deepened wells.
Discussions continue with multiple parties over commercialising co-produced carbon dioxide, with the tie-in of the Jackson-27 well, which carries a CO2 concentration of approximately 98.3%, timed to coincide with the start of CO2 sales; Blue Star said the start of liquefaction and sales remains subject to finalising commercial arrangements and completing further plant modifications.
Up to 30 potential drilling locations have been identified across the wider Galactica-Pegasus project area, where all production wells to date sit within the Upper Lyons sandstone, with future drilling also to weigh strategies for the Lower Lyons formation and the potential for further processing facilities at new locations; Blue Star put the project's production life at more than 12 years, with development at Pegasus from 2027 subject to the joint venture's work programme and funding.
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In Tanzania, the farm-out process for the Southern Rukwa Helium Project continues with PVE Consulting, the adviser Helium One appointed to lead talks with potential industry partners.
The company has completed drilling of three shallow, vertical stratigraphic wells near the Itumbula helium discovery within the 480 square kilometre mining licence area, each less than 100 metres deep and drilled using a local water well contractor to identify shallow basement and improve seismic control ahead of planning the first cluster of basement development wells targeting the fractured basement helium play.
The wells were not designed to test for helium, but Helium One said they have advanced its understanding of the basement play, work that runs alongside its ongoing evaluation of the extended electrical submersible pump testing phase completed earlier this year.
