Helium One Global, 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
§ State-9 SWSE 3054 ("State-9") development well spudded at the Galactica helium project
§ Currently preparing to drill intermediate hole section
Details
The Company is pleased to announce the spudding of the State-9 development well at its Galactica helium project in Las Animas County, Colorado. This is the sixth well to be drilled in the Galactica development campaign.
The shallow conductor has been set and blowout preventers are being installed and tested, and the next phase will be to drill through the intermediate hole section. After casing at the base of the intermediate section, the well will target the Lyons Sandstone Formation, with Total Depth ("TD") planned within the Upper Lyons Formation gas reservoir.
When TD is reached, wireline logging will then be commenced, followed by flow and pressure readings at the wellhead. This data will be used to estimate the production potential of the well based on the production model.
State-9 is anticipated to be completed and ultimately tied-in to production facilities.
Galactica/Pegasus Development
The Galactica project forms part of the broader Galactica/Pegasus development, discovered by Blue Star in 2022. This large-scale project offers multiple potential product streams. Blue Star is advancing the Galactica project in joint venture with Helium One Global Ltd. Under the farm-in agreement, Helium One will fund the first US $450,000 of this well.
The third-party owned Red Rocks helium project adjoins Blue Star's Galactica Project (see map below). Development of Red Rocks further supports the commercialisation of the Galactica Project.