Helium One Global (AIM:HE1) announced it raised gross proceeds of £3m through a placing of 1.03bn new shares at 0.29p each, undertaken by Axis Capital Markets.
Net proceeds will fund continued development of Galactica-Pegasus and pay the annual mining licence fee on the Southern Rukwa Helium Project, in that stated order.
Galactica-Pegasus began producing helium and generated first revenues in July, and has since progressed from first tube-trailer sales to a scheduled exchange cadence, with the existing offtake agreement now extended to the end of the first quarter of 2027 under fixed pricing.
Operator Blue Star Helium is moving the Pinon Canyon plant toward 24/7 operations, with six development wells currently tied in and producing, and the current plan targets full nameplate capacity by the end of 2027 supported by up to 15 wells, producing an estimated 2,200 Mcf of helium and 44,500 Mcf of CO2 per month at that stage.
Blue Star plans three additional development wells at Galactica in the fourth quarter, subject to permitting, followed by six more in 2027 and the deepening of three existing wells, with a carbon dioxide revenue stream targeted for the first quarter of 2027 pending commissioning of a liquefaction unit.
The operator's illustrative scenarios, using helium prices of $350, $475 and $600 per Mcf, point to joint venture revenues of $13.8m, $24.0m and $34.2m respectively at full capacity, after royalties but before operating costs, taxes and other deductions, figures that do not represent cash flow attributable to Helium One.
Read more about Helium One
- 01/09/26Helium One extends Colorado offtake deal to Q1 2027
- 11/08/26Helium One's Colorado partner delivers third helium trailer
- 26/03/26Helium One Global raises £3.5m placing to back Galactica Project
The operator expects the next six wells, planned for the fourth quarter and into the first half of 2027, to be funded from this placing, with the remaining second-half 2027 drilling programme funded from revenues.
In Tanzania, the farm-out process for the Southern Rukwa Project continues with adviser PVE Consulting, with a number of interested parties active in the data room as the company seeks long-term investment to advance the project's next development phase.