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Highlights
- The Colorado Energy and Carbon Management Commission (ECMC) has approved five new helium development wells at the Galactica-Pegasus project in Colorado.
- Drilling at the Galactica Project is expected to begin in Q4 2024, pending final drilling permit approval.
- Helium One’s Mining License application for the southern Rukwa helium project in Tanzania remains under review, while three other less promising licenses will lapse.
Helium One Global (LSE:HE1), Tanzania's leading helium exploration company, has shared key updates regarding its ongoing projects in both the United States and Tanzania. In addition, the company acknowledges the announcement made by Blue Star Helium (ASX:BNL) concerning the Galactica-Pegasus project located in Las Animas County, Colorado, USA. This project is jointly being developed by Helium One and Blue Star Helium, with the latter acting as the operator. The developments come at a crucial time for the helium exploration industry, as the demand for this rare and essential gas continues to rise globally.
Colorado Developments:
In a significant breakthrough, the Colorado Energy and Carbon Management Commission (ECMC) has granted approval for five new proposed helium development well locations at the Galactica Project. The newly approved well locations are Jackson-27 SWSE, Jackson-31 SENW, Jackson-29 SWNW, Jackson-2 L4, and Jackson-4 L4. These sites are strategically positioned to the south and southwest of the existing State-16 well, which has already demonstrated success. The wells are crucial as they are expected to form part of the initial gas gathering infrastructure for the Galactica helium production facility.
The approved well locations are in close proximity to the proposed Galactica helium production plant, which is currently in development. Once operational, this facility will play a vital role in collecting and processing helium from the surrounding wells, including the successful State-16. Helium One’s collaboration with Blue Star Helium as part of this project is a significant step forward for both companies and marks an important milestone in the effort to develop commercially viable helium sources in the U.S.
The approval of these well locations is a key condition precedent to the farm-in agreement between Helium One and Blue Star. Drilling activities on the Galactica Project are expected to commence in the fourth quarter of 2024, subject to final approval of the drilling permit, referred to as Form 2. This project is viewed as a significant advancement in Helium One's strategy to expand its helium footprint beyond Tanzania, and the Colorado developments are an important piece of this puzzle.
Tanzania Updates:
In parallel to the U.S. operations, Helium One has also provided updates on its domestic projects in Tanzania. The company’s Mining License application for the southern Rukwa helium project is still under review by the Tanzanian Mining Commission. The southern Rukwa project is considered a flagship operation for Helium One, with the potential to become a major source of helium supply globally.
However, not all developments have been favorable. Helium One disclosed that three of its other prospecting licenses (PLs) in Tanzania, which were considered less promising, have reached the end of their second and final renewal terms. These licenses, located in challenging terrain or offshore on the lake, will automatically lapse as they are no longer viable for further exploration.
