REG - Helium One Global Ld - Completion of Farm-In

Helium One GlobalAnnouncement

04/11/2024 07:00

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RNS Number : 7167K  Helium One Global Ltd  04 November 2024

04 November 2024

 

 

Helium One Global Ltd

("Helium One" or "the Company")

 

Completion of Farm-In to Blue Star Helium's Galactica-Pegasus Project

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is
pleased to provide the following update on the farm-in agreement with Blue
Star Helium (ASX: BNL) ("Blue Star") over the Galactica-Pegasus project
in Las Animas County, Colorado, USA ("the Galactica Project").

 

Highlights

·    Farm-in agreement with Blue Star successfully completed, following
satisfaction of all conditions precedent

·    The Company to earn a 50% interest in the Galactica Project in
exchange for paying US$1.5 million cash consideration and to fund the drilling
of six development wells. Blue Star remains Operator of the project

·    The initial six development-well drilling programme, together with the
State-16 well, to form part of the initial gas gathering into the Galactica
helium production facility

·    Drilling of these initial six wells is expected to start during Q4
2024, with first helium production expected in H1 2025

 

Lorna Blaisse, Chief Executive Officer, commented:

"We're very pleased to have completed this agreement with Blue Star and
anticipate positive results from the upcoming development wells as the project
advances into the production phase. This project provides Helium One with the
opportunity to diversify its helium portfolio and benefit from production and
revenue from first helium gas in H1 2025.

"In Tanzania we await the official approval from the Ministry of Minerals
having submitted our comprehensive Mining Licence application for Helium
One's southern Rukwa Helium Project, encompassing the Itumbula and Tai areas
for commercial development. We look forward to updating our shareholders and
stake holders in due course."

 

Farm-out agreement with Blue Star

The Company previously entered into a binding Heads of Agreement ("Agreement")
by which the Company earns a 50% interest in the Galactica Project in exchange
for paying US$1.5 million to Blue Star in consideration for past costs and
funding the drilling of six (6) development wells (capped at US$450k per
well). Blue Star, through its local operating entity, will continue to act as
Operator of the Galactica Project.

The Agreement was subject to satisfaction or waiver of certain conditions
precedent, with the key conditions being approval by the Colorado Energy and
Carbon Management Commission ("ECMC") of the Galactica-Pegasus oil and gas
development plan ("OGDP"), and the execution of definitive governing
agreements, including a farm-in agreement and a joint operating agreement,
which have now been completed.

Blue Star received approval for the OGDP I on 17(th) October 2024, with the
ECMC approving the new proposed helium development wells Jackson-27 SWSE,
Jackson-31 SENW, Jackson-29 SWNW, Jackson-2 L4 and Jackson-4 L4. Following
this approval, Blue Star has submitted the final drilling permit applications
("Form 2") to drill these wells and is working closely with the ECMC to
facilitate timely approvals.

Subject to Form 2 approval, drilling is expected to commence during Q4 2024.

 

Galactica- Pegasus development

The Galactica-Pegasus field was discovered by Blue Star in 2022 via the
JXSN#1, #2, #3 and #4 wells. These wells showed gas bearing columns of up to
230 feet containing gas with between approximately 2% to 6% helium and initial
recorded flow rates of between 125 thousand standard cubic feet per day
("Mcf/d") and 412 Mcf/d.

In June 2024, Blue Star drilled the first development well at Galactica (Phase
1 of the greater Galactica-Pegasus development). The State-16 development well
flowed 1.9% helium at 285 Mcf/d in addition to 70% CO(2). Subsequent
independent reservoir engineering including all available well data and review
of the adjacent Red Rocks helium development established likely initial
production flow rate estimates between 250 to 615 Mcf/d for future development
wells.

The initial six well drilling programme funded by Helium One, together with
State-16, are expected to form the initial gas gathering system into the Phase
1 helium production facility (location shown on the figure below).

First production from the Phase 1 of the Galactica-Pegasus development is
expected in H1 2025.

 

 

For further information please visit the Company's website: www.helium-one.com
(http://www.helium-one.com)

 

Contact

 Helium One Global Ltd                                         +44 20 7920 3150

 Lorna Blaisse, CEO

 Graham Jacobs, Finance and Commercial Director

 Panmure Liberum Limited (Nominated Adviser and Joint Broker)  +44 20 3100 2000

 Scott Mathieson

 Nikhil Varghese

 Zeus Capital Limited (Joint Broker)                           +44 20 3829 5000

 Simon Johnson

 Louisa Waddell

 Tavistock (Financial PR)                                      +44 20 7920 3150

 Nick Elwes

 Tara Vivian-Neal

 

 

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting
licences across two distinct project areas, with the potential to become a
strategic player in resolving a supply-constrained helium market.

The Rukwa and Eyasi projects are located within rift basins on the margin of
the Tanzanian Craton in the north and southwest of the country. These assets
lie near surface seeps with helium concentrations ranging up to 10.4% helium
by volume. All Helium One's licences are held on a 100% equity basis.

The Company's flagship southern Rukwa Project is located within the southern
Rukwa Rift Basin covering 1,664km(2) in south-west Tanzania.  This project is
considered to be entering an appraisal stage following the success of the
2023/24 exploration drilling campaign, which proved a helium discovery at
Itumbula West-1 and, following an extended well test, successfully flowed 5.5%
helium continually to surface in Q3 2024.

Following the success of the extended well test, the Company has now flowed
significant quantities of helium to surface and has filed a Mining Licence
application with the Mining Commission of the Tanzanian Government.

The Company also owns a 50% working interest in the Galactica-Pegasus helium
development project in Las Animas County, Colorado, USA. This project is
operated by Blue Star Helium Ltd (ASX: BNL).

Helium One is listed on the AIM market of the London Stock Exchange with the
ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

 

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