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Highlights
State-9 well drilled to total depth with free gas confirmed
High-quality gas-saturated sands encountered in Upper Lyons Sandstone Formation
Well head installation and further testing underway
Helium One Global Ltd is a leading helium exploration company with a significant focus on the Galactica-Pegasus helium development project in Colorado, USA. The company is also actively engaged in the exploration of helium reserves in Tanzania. Recently, Helium One provided an update on the drilling progress at its State-9 well, which is part of its ongoing efforts to expand its helium exploration operations. The company’s activities are listed under the ticker (LON:HE1), and it is part of the FTSE 350 index.
State-9 Well Drilling Update
Helium One’s State-9 well, located in the Galactica Project, was successfully drilled to total depth (TD) at a measured depth of 1,225 feet. During the drilling process, the well showed significant natural flow, indicating strong reservoir communication. This natural flow continued as the well reached TD, providing early indications of a favorable geological environment.
Importantly, the drilling did not encounter any water, which was confirmed by wireline logs. The lack of water suggests that the targeted gas-saturated sands in the Upper Lyons Sandstone Formation are likely to have a substantial gas column. This discovery aligns with previous findings in offset wells, reinforcing the quality and connectivity of the gas reservoir in this area.
Well Completion and Reservoir Quality
The State-9 well reached the Upper Lyons Sandstone Formation at a measured depth of 1,165 feet. The well was completed 60 feet into this formation at 1,225 feet. The formation encountered was identified as high-quality sandstone, which is well connected to the gas column in the area. This formation is believed to be gas-saturated, as indicated by previous drilling in offset wells, further validating the prospectivity of the State-9 well.
Based on the results from previous wells such as Jackson-2 and Jackson-27, it is anticipated that the entire Upper Lyons Sandstone Formation, and potentially a significant portion of the Lower Lyons Sandstone Formation, will be gas-saturated. The State-9 well targeted the highest-quality sandstone layer within the Upper Lyons Sandstone, which is connected to the broader gas column in the area.
Next Steps and Testing
With the well drilled to its total depth and initial flow confirmed, the focus now shifts to further testing. The well head is being installed, and surface pressure readings will be taken to assess the full extent of the gas flow. Samples from the well have been sent to a laboratory for analysis to determine the concentration of helium and other gases, including CO2. These results will provide more detailed information regarding the composition and quality of the gas reserves in the area.
As the testing progresses, further data will be gathered to evaluate the viability of developing the gas reserves. These findings will be critical in shaping the next steps for Helium One as it looks to expand its helium production capabilities.
Industry Context
Helium One’s exploration activities are situated within the global helium market, which is characterized by increasing demand for helium across various industries, including medical, scientific research, and technology. The successful drilling of wells like State-9 is essential for expanding global helium reserves, which are in high demand due to their limited availability.
The company’s listing on the AIM index and involvement in the FTSE 350 index adds visibility to its ongoing projects. As Helium One continues to explore and develop its helium reserves, it will remain a key player in the helium sector, with the potential to contribute significantly to the global supply of helium in the years ahead.
