Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) has announced the commencement of drilling at the Jackson-31 well, part of the Galactica helium project in Colorado.
The company, which holds a 50% stake in the project, confirmed that initial operations are progressing. Equipment is in place, and preparations are underway for deeper drilling.
Jackson-31 is focused on the Lyons Sandstone Formation, a proven gas reservoir. The results from this well are expected to provide crucial insights into the field’s helium potential.
Summary
- Jackson-31 well spudded at the Galactica helium project
- Currently preparing to drill intermediate hole section
Previous wells in the area have yielded high helium concentrations of up to 6.1%, with gas flows ranging from 125,000 to over 400,000 cubic feet per day.
The most recent well, State-16, drilled last year, demonstrated strong production potential. Independent experts estimate it could sustain output between 250,000 and 350,000 cubic feet per day at a helium purity of 1.9%.
The shallow conductor section has been set, and the BOPs are now being installed and tested ahead of drilling out the intermediate hole section. After casing at the base of the intermediate section, the well will target the Lyons Formation, with Target Depth (“TD”) planned within the Upper Lyons Formation gas reservoir.
When TD is reached, wireline logging will then be undertaken, followed by flow and pressure readings at the wellhead. This data will be used to estimate the potential of the well based on the production model.
Jackson-31 is anticipated to be completed and ultimately tied-in to production facilities.
Galactica/Pegasus Development
The Galactica project forms part of the broader Galactica/Pegasus development, discovered by Blue Star in 2022. This large-scale project offers multiple potential product streams. Four existing discoveries at Galactica/Pegasus (JXSN-1 to JXSN-4) have delivered gas flows of 125 to 412 thousand cubic feet per day (“Mcfd”) to 412 Mcfd with high helium concentrations of between 2.0% and 6.1%
Blue Star further appraised the discovery with the State-16 well which was drilled in June 2024. Independent engineering consultants advised that State-16 is capable of producing up to 441 Mcfd with more stabilised rates constrained for production optimisation, projected to be between 250 Mcfd and 350 Mcfd. The well tested 1.9% helium and logs identified 96+ feet of gas column in the Lyons Sandstone Formation.
The third-party owned Red Rocks helium project adjoins Blue Star’s Galactica Project (see map below). Development of Red Rocks further supports the commercialisation of the Galactica Project.
Blue Star has been advancing engineering work on Galactica related to CO2 removal, purification and sale prior to helium processing via the IACX helium recovery unit. Engineering and market analysis continues to optimize development configurations, production forecasts, and cost estimates.
