Helium One’s Colorado Breakthrough: A Glimmer of Hope in the Global Helium Supply Crunch?

The global helium market, a critical but often overlooked industry powering everything from medical imaging to semiconductor manufacturing, is bracing for a potential game-changer. Helium One Global Ltd, a company at the vanguard of helium exploration, has announced results from its Jackson-27 well in Colorado that could reshape the supply landscape. The data, released in April 2025, suggests the project’s Upper Lyons Formation reservoir is not only robust but also capable of producing at rates that rival some of the world’s most prolific helium fields.

The Colorado Well: A Technical Triumph

The Jackson-27 well, drilled to a depth of 1,183 feet, encountered 60 feet of high-quality, gas-saturated sandstone with porosity estimates of 22–26%. Flow testing revealed an initial rate of 320 Mcfd, with stabilized production projected between 350–450 Mcfd—and a maximum potential of 550 Mcfd. These numbers are a stark contrast to the 150 Mcfd sustained by the nearby State-16 well, underscoring Jackson-27’s superior reservoir conditions.

The gas analysis adds further intrigue: helium concentrations of 0.41% (air-corrected) and 98.31% CO2, combined with permeability readings of 300–750 millidarcies, signal a reservoir with both scale and efficiency. Such metrics are critical for commercial viability, as helium extraction typically requires concentrations above 0.2% to be economically viable.

Data in Context: How Does This Stack Up?

Helium One’s Colorado project isn’t just a technical feat—it’s a strategic move in a sector grappling with supply constraints. The U.S. remains the world’s largest helium producer, but aging fields in Texas and Kansas face declining output. Meanwhile, global demand is projected to grow at a 3–4% annual clip, driven by advancements in quantum computing, healthcare, and semiconductor manufacturing.

The Tanzania Anchor: A Dual-Pronged Play

While Colorado’s success is pivotal, Helium One’s broader ambitions hinge on its flagship Rukwa Project in Tanzania, where a 480 km² mining license was secured in March 2025. The Itumbula West-1 well there achieved a 5.5% helium flow—a figure that dwarfs even the best Colorado results. This concentration, paired with surface seep data showing 10.4% helium, positions Tanzania as the company’s crown jewel.

The dual focus on Colorado and Tanzania reflects a deliberate risk-mitigation strategy. Colorado’s lower helium concentration but higher CO2 output could be leveraged for carbon sequestration projects, while Tanzania’s richer reserves offer immediate production potential.

The Joint Venture Advantage

Helium One’s 50% working interest in the Galactica-Pegasus project, operated by Blue Star Helium, underscores the financial and operational discipline required in such ventures. The partnership’s focus on vacuum compression (6–11 psia) to optimize production aligns with engineering models predicting flow rates up to 780 Mcfd—a range that, if realized, could make the project one of the largest in the U.S.

Risks and Rewards

The path to commercialization is fraught with hurdles. Permitting delays, fluctuating helium prices, and the high capital costs of helium liquefaction plants are ever-present risks. Yet the numbers are compelling: at current helium prices (~$8–10 per cubic meter), even a 400 Mcfd well in Colorado could generate millions annually.

Conclusion: A New Era for Helium?

Helium One’s Colorado and Tanzania projects collectively represent a rare opportunity in an industry starved for new discoveries. The Jackson-27 well’s technical prowess—backed by permeability readings and flow rates that outperform peers—suggests scalability, while Tanzania’s 5.5% helium flow positions it as a potential top-tier asset.

Crunching the numbers:
- Colorado’s Upper Limit: At 550 Mcfd, the well could produce ~200 billion cubic feet over its lifespan, assuming a 30-year field life.
- Tanzania’s Potential: A 5.5% concentration field covering 480 km² could rival Qatar’s Ras Laffan facility, the world’s largest helium producer.

For investors, the calculus is clear: helium’s strategic importance and tightening supply make projects like these high-risk, high-reward bets. If Helium One can navigate permitting, secure offtake agreements, and scale production, it could emerge as a linchpin in a resource race where the stakes are as clear as the gas itself: invisible, but indispensable.

In an era of resource scarcity, Helium One’s findings are more than data points—they’re the blueprints for a new chapter in the global helium story.