REG - Helium One Global Ld - Galactica Project Update

Helium One GlobalAnnouncement

10/06/2025 07:00

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RNS Number : 0923M  Helium One Global Ltd  10 June 2025

10 June 2025

 

 

      Helium One Global Ltd

("Helium One" or "the Company")

 

Completion of Successful Drilling Campaign on Galactica-Pegasus Project and
State-9 Flow Test Results and Gas Analysis Update

 

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania with a
50% working interest in the Galactica-Pegasus helium development project
in Colorado, USA ("the Galactica Project"), provides an update following the
Blue Star Helium (ASX: BNL) ("Blue Star") announcement issued today regarding
the Galactica Project.

 

Highlights

·    Successful completion of the 2025 Galactica development drilling
programme; significantly advancing the Galactica-Pegasus helium and CO(2)
project

·    Consistent positive results across all six wells in the programme
confirms the production potential and near-term monetisation opportunity

·    Well results support finalising the development plan and
fast-tracking to commercial production

·    Next steps include advancing the Galactica wells to initial
production in  Q4 2025, utilising the planned processing facility

·    State-9 flowed naturally during drilling and at Total Depth ("TD")

·    Flow rate at State-9 since TD has increased to over 360 thousand
cubic feet per day ("Mcfd")

·    Projected Stabilised Flow Rates are 400 Mcfd to 500 Mcfd constrained
to optimise production, with a maximum potential rate of 600 Mcfd

·    Early samples return helium concentration of up to 1.52%
(air-corrected) and 80.48% CO(2)

 

Lorna Blaisse, Chief Executive Officer, commented:

"This has been a successful development campaign, with consistently good flow
rates and helium concentrations within the expected ranges. We appreciate the
efforts of Blue Star in driving this operation, and very much look forward to
the next steps in bringing these wells online and targeting first production
and cash flow in Q4 this year.

We have a clear development plan in place for the construction of the
processing facility, the tying in of the wells and the subsequent testing and
commissioning to take us through to first production and are excited about the
wider field development potential across the Galactica-Pegasus resource."

 

 

Details of Galactica Drilling Programme

The completion of this six well development programme is a key component of
the broader Galactica-Pegasus development strategy; aimed at progressing the
helium and CO(2) discoveries to near-term commercial production.

This programme has seen a systematic approach to developing the extensive
Lyons Formation reservoir. The programme has delivered encouraging results, in
line with expectations, consistently encountering good helium and CO(2)
concentrations in the target formation and demonstrating promising flow
potential.

The Galactica wells are summarised below:

Next Steps: Finalising Development Planning and Commercial Production

Following the successful conclusion of the 2025 drilling campaign, the focus
is now on advancing the Galactica development into initial commercial
production from the Pinon Canyon Plant. This plant will be designed and
operated by Cimarron Midstream (previously IACX Energy LLC) and will be
installed close to the Jackson-31 well.

Phase 1: Commercial Production from Pinon Canyon Plant (Target: Q4 2025)

The primary target is to commence initial commercial helium production from
the Pinon Canyon Plant. This will be achieved by tying in the initial group of
producing wells to this helium and CO(2) processing plant.

Key activities to achieve this include:

1.    Finalising Plant Design: Engineering design studies for the Pinon
Canyon Plant are advancing with flow data and gas analysis from the recently
completed drilling campaign being integrated. The final design of the helium
and CO(2) processing plant will be determined once all of the gas analysis and
flow modelling has been completed.

2.    Site Development: Civil works will commence at the approved Pinon
Canyon Plant location once the final plant layout is determined.

3.    Equipment Mobilisation: Following site preparations, mobilisation of
the plant equipment to the Pinon Canyon site will be undertaken.

4.    Well Tie-Ins and Compression: Tie-in of initial production wells,
including any necessary well-site gas compression, will proceed alongside
plant site civil works.

5.    Commissioning: Upon completion of the Pinon Canyon Plant and
individual well tie-ins, the plant will be tested and commissioned. This is
subject to standard operational permits, environmental compliance, and final
readiness assessments.

This initial production phase is designed to provide early cash flow and
invaluable operational data, which will be instrumental in optimising
full-field development plans for both the Galactica development and the
broader Galactica-Pegasus Project.

All production forecasts and commissioning timelines remain subject to a
number of factors including: final engineering; regulatory approvals;
equipment availability; and market conditions.

Phase 2: Expanded Throughput and CO(2) Monetisation

Following the successful commissioning and ramp-up of initial helium
production from the Pinon Canyon Plant, Phase 2 will focus on increasing
helium production and monetising CO(2) through the existing facilities.

Increasing Helium Production:

Expanding throughput at the Pinon Canyon Plant by drilling and tying-in
additional production wells from the Galactica development area.

Beyond the wells planned for initial production, the joint venture has
identified an initial additional six to ten infill and expansion drilling
locations at Galactica, based on recent results. A further 20 to 30 potential
drilling locations have been identified within the greater Galactica-Pegasus
Project area.

In addition, to date, all production wells have been completed within the
Upper Lyons Sandstone Formation. Future infill and expansion drilling will
consider strategies for accelerating and optimising production from the Lower
Lyons Sandstone Formation, in conjunction with the Upper Lyons Sandstone
Formation.

The joint venture is currently evaluating the sequencing and prioritisation of
future drilling to maximise efficiency, production scalability, and resource
recovery.

CO(2 ) Monetisation:

The plant will require minor modifications to allow for integration of the
additional CO(2) purification and liquefaction process, that will allow
production and commercialisation of  the project's significant CO(2)
resources.

Marketing and Offtake Strategy

The joint venture is actively developing its marketing and offtake strategy
with a view to establishing operating partners across the entire helium supply
chain.  These include but are not limited to, securing distribution partners
for transportation of both bulk liquid helium and gaseous helium, pursuing
direct sales to end-users, targeting buyers who prioritise continuity and
security of supply and aiming for long-term agreements designed to navigate
helium supply and price cycles effectively.

Development Strategy and Future Outlook

This phased approach allows for efficient capital deployment and leverages
early operational learnings from the Pinon Canyon Plant.

Based on the future performance of the Pinon Canyon Plant and ongoing
appraisal drilling success, the joint venture will also assess the potential
for establishing a second processing facility at a new location to further
develop the extensive resources within the Galactica-Pegasus Project area.

Further updates will be provided to the market at key milestones during the
development phase.

 

State-9 Flow Test Results and Gas Analysis

The State-9 well reached TD at 1,225 feet (373m) within the Upper Lyons
Formation, encountering the Lyons Sandstone Formation at 1,165 feet (355m). As
expected, no water was encountered during drilling of the Lyons Formation with
wireline logs confirming the penetrated Lyons Sandstone Formation to be
high-quality and gas saturated.

Flow testing since TD has revealed increasing natural flow rates, reaching
approximately 360 Mcfd to-date. Strong pressure build-up post-testing
indicates high permeability and good reservoir communication. Based on the
previous engineering study described below, and the observed flow rates, the
projected stabilised flow rates constrained for production optimisation are
expected to be between 400 Mcfd to 500 Mcfd, with a maximum of 600 Mcfd.

Initial laboratory analysis of gas samples from State-9 showed a helium
concentration up to 1.52% (air-corrected) and 80.48% CO(2) (and 17.69%
nitrogen). The well has tested the far eastern extent of the Galactica project
area. Understanding the flow potential and reservoir gas composition in this
part of the field is key to defining the helium-CO(2) development going
forward.

 

 

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 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 flowed
significant quantities of helium to surface and filed a Mining Licence ("ML")
application with the Tanzania Mining Commission in September 2024. The
480km(2) ML has now been offered to the Company and was officially accepted in
March 2025.

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) and has successfully completed a
six well development drilling campaign in H1 2025. The completion of the
development programme is a key component of the broader Galactica-Pegasus
development strategy; aimed at progressing the helium and CO(2) discoveries to
near-term commercial production.

This programme has seen a systematic approach to developing the extensive
Lyons Formation reservoir. The programme has delivered encouraging results, in
line with expectations, consistently encountering good helium (up to 3.3% He)
and CO(2) concentrations in the target formation and demonstrating promising
flow potential. The next steps will see the Galactica wells tied into initial
production in Q4 2025.

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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