Helium One Global Secures Second Commercial Helium Sale from Colorado Galactica-Pegasus Project

Colorado Galactica-Pegasus Project Reaches Commercial Production Milestone

Helium One Global’s 50% interest in the Galactica-Pegasus project has advanced with the delivery of the second helium trailer on 28 July 2026, under a previously announced short-term offtake agreement. This follows the first helium sale on 14 July 2026, marking a shift from intermittent testing to systematic commercial operations. Regular trailer exchanges are now scheduled, with new trailers filling upon arrival. The Pinon Canyon Plant, which processes helium and CO from the Lyons Formation reservoir, has stabilised production as the Joint Venture focuses on consistent sales and cash flow generation.

This routine delivery schedule is a significant milestone following the completion of a six-well development drilling campaign in early 2025. Initial wells began producing first gas in Q4 2025, with additional wells coming online throughout 2026. Blue Star Helium Ltd, the operating partner, manages daily operations and has indicated that while routine trailer fills will continue on schedule, major milestones and commercial updates will be publicly announced, reflecting confidence in production stability.

Expansion Strategy and Well Development Plans for 2026

The Joint Venture has outlined plans to increase helium production toward the Pinon Canyon Plant’s full design capacity by drilling three new development wells in the second half of 2026. These wells will connect to existing infrastructure and are expected to substantially increase raw gas throughput and helium output, pending permit approvals. This strategy aligns with original project plans and confirms the development timeline remains on track.

In addition to new drilling, the Joint Venture is exploring deepening existing wells to access further reservoir sections and enhance production rates. Debottlenecking efforts at the plant and gathering system are also planned to unlock additional capacity. These efficiency improvements are typical during early commercial operations and aim to optimise production from the Lyons Formation reservoir.

Helium Market Overview and Supply Constraints

Helium One Global operates in a global market marked by supply limitations and concentrated production hubs. Demand remains strong across industrial, medical, and scientific sectors, while global helium supply is geographically restricted. The United States is the world’s largest helium producer. Helium One’s dual-continent portfolio in Colorado and Tanzania positions the company to leverage this supply-demand imbalance over the medium to long term.

The Colorado project addresses North American helium demand, while the Tanzanian asset offers access to African and Asian markets. The commercial production milestone at Galactica-Pegasus confirms the presence of helium resources beyond traditional zones, potentially easing supply bottlenecks. The company’s focus on the "supply-constrained helium market" underscores favorable industry dynamics for new producers delivering significant volumes.

Progress at Tanzania’s Southern Rukwa Project

Helium One Global’s flagship southern Rukwa Project in Tanzania has advanced to full appraisal and development following successful 2023/24 exploration drilling. The Itumbula West-1 well discovery underwent an extended well test in Q3 2024, confirming continuous helium production at 5.5% concentration and demonstrating reservoir flow sustainability.

Following these results, the company applied for a Mining Licence in September 2024, which was formally granted in July 2025. This licence covers 480 square kilometres and removes permitting uncertainties, enabling progression toward development and production. This transition reflects the project’s maturation and Helium One’s confidence in its commercial potential.

Management Insights and Commercial Outlook

CEO Lorna Blaisse described the second helium trailer delivery as "another important milestone for our US helium producing asset" and the first sale under the short-term offtake agreement. She highlighted ongoing progress by the Joint Venture’s operating partner and expressed satisfaction with stable production levels supporting regular sales. Blaisse emphasized the significance of transitioning to cash flow generation, marking a shift from development expenditure to commercial revenue.

She also noted "further upside expected as production is progressively ramped up," signaling confidence in achieving higher output through planned development activities. As a 50% equity partner, Helium One Global stands to benefit directly from improved operations and cash flow at Galactica-Pegasus. The CEO’s cautious yet positive tone reflects both execution risk awareness and recognition of this strategic milestone.

Galactica-Pegasus Development and Reservoir Details

The Galactica-Pegasus development program focuses on the Lyons Formation reservoir in Las Animas County, Colorado. The six-well drilling campaign completed in early 2025 aimed to validate helium and CO discoveries from prior exploration. Wells have encountered helium concentrations up to 3.3%, alongside CO, demonstrating promising flow rates.

Systematic well placement allows optimal reservoir exposure and delineation of productive zones. Initial wells began producing in Q4 2025, with additional wells coming online in 2026 for helium and CO. Co-production of helium and CO enhances project economics by diversifying revenue streams and providing operational flexibility amid changing market conditions.

Joint Venture Structure and Operating Partner Role

Blue Star Helium Ltd (ASX:BNL) operates the Galactica-Pegasus project, overseeing daily management, capital expenditure, and production. Helium One Global holds a 50% working interest, sharing equity and decision-making responsibilities. This arrangement is typical in upstream energy projects where an operator manages operations and partners share capital and revenue proportionally.

The operator indicated routine trailer exchanges will continue on schedule without individual announcements, while significant milestones and commercial developments will be publicly disclosed. Helium One Global remains actively informed through Joint Venture governance, enabling oversight of operational progress, capital allocation, drilling, and production strategies.

Capital and Cash Flow Transition

The commencement of commercial sales marks a pivotal phase, transitioning from capital-intensive development to cash flow generation. The Joint Venture incurred substantial capital expenditure during drilling, plant installation, and infrastructure setup, which will now be amortised over production volumes and revenues.

Near-term focus has shifted to "cash flow generation through regular helium sales," indicating reduced development capital needs and an emphasis on optimising existing assets. Planned H2 2026 activities—including drilling three new wells, deepening existing wells, and debottlenecking—are expected to increase output and revenue, potentially funded by current cash flows. This move toward self-funding development supports project viability.

Helium Supply Security and Sector Dynamics

Global helium supply is concentrated in a few regions, mainly the US, Qatar, and Russia. Supply disruptions or geopolitical issues can cause price volatility and shortages. Helium’s unique properties, such as its extremely low boiling point and irreplaceability in applications like medical MRI, create inelastic demand with limited substitution options.

Developing new helium sources outside traditional regions is strategically important for supply security and price stability. Helium One Global’s operations in North America and Africa contribute to geographic diversification, reducing supply concentration risks and supporting industries reliant on helium. The commercial success at Galactica-Pegasus thus enhances global helium supply security beyond company financials.

Investor Focus and Upcoming Milestones

Investors should monitor key developments including the drilling of three new wells and debottlenecking projects in H2 2026 to assess execution and production growth. Tracking helium and CO volumes delivered via trailer sales will provide insights into production rates and cash flow relative to forecasts.

Progress at the Tanzania southern Rukwa Project remains a critical longer-term value driver. Key updates include appraisal drilling progress at Itumbula West-1, development planning, feasibility studies, and any financing or partnership announcements. Company updates and website disclosures will be primary sources for material information on both Colorado and Tanzania assets. The immediate impact on share price was not evident from available information.