Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) announced that drilling at its Galactica-Pegasus development project in Colorado, USA, has been halted until the New Year due to severe weather conditions.
Blue Star Helium Ltd (ASX: BNL, OTC: BSNLF), the project’s operator, stated that the current ground conditions prevent the construction of well sites and access roads at the Galactica locations.
If weather conditions improve, Blue Star Operator has rescheduled the drilling to begin in mid-January to avoid incurring standby costs over Christmas.
Highlights
· Weather-induced ground conditions do not currently permit construction of well sites and access roads at Galactica locations
· Blue Star and its construction partners stand ready for mobilisation as soon as conditions permit
· The Operator has decided to reschedule the start of drilling into mid-January to avoid standby costs over the Christmas period
· The delay to the start of drilling is not expected to affect the overall project development timeline or targeted production commencement, which remains H1 2025
· Work is advancing on the engineering related to CO2 removal, purification and sale prior to helium processing via the IACX helium recovery unit
Details
Site work for the Stage 1 development drilling has been postponed due to adverse weather conditions, as the ground is currently waterlogged and unsuitable for construction. Blue Star is closely monitoring snowmelt and ground saturation in collaboration with its landowner and construction partners. All services are prepared to mobilize as soon as conditions improve, and construction could potentially begin before the end of the year if there is no additional snow or precipitation.
To avoid unnecessary standby costs during the Christmas break, Blue Star has opted not to transport the rig and drilling equipment to the site beforehand. Drilling is now anticipated to commence in mid-January 2025, weather permitting.
This adjustment in the drilling schedule for the initial development wells at Galactica is not expected to impact the overall project timeline, with production still projected to begin in the first half of 2025.
Meanwhile, Blue Star continues to advance engineering efforts at Galactica, focusing on CO₂ removal, purification, and sales prior to helium processing through the IACX helium recovery unit. Additionally, Blue Star has selected its preferred power generation solution for the project.
