Helium One Global Ltd: Drilling Begins on Jackson-4 Well at Galactica Project

Helium One Global Ltd (HE1.L), the primary helium explorer in Tanzania with a 50% working interest in the Galactica-Pegasus helium development project in Colorado, USA, has announced the spudding of the Jackson-4 development well at its Galactica helium project in Las Animas County, Colorado. The well's shallow conductor section has been set, with BOPs being installed and tested 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 Target Depth ("TD") planned within the Upper Lyons Formation gas reservoir.

When TD is reached, wireline logging will then be conducted, 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. Jackson-4 is anticipated to be completed and ultimately tied-in to production facilities.

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. Four existing discoveries at Galactica/Pegasus (JXSN-1 to JXSN-4) have delivered gas flows of 125 to 412 thousand cubic feet per day ("Mcfd") to 412 Mcfd with high helium concentrations of between 2.0% and 6.1%. Blue Star further appraised the discovery with the State-16 well which was drilled in June 2024. Independent engineering consultants advised that State-16 is capable of producing up to 441 Mcfd with more stabilised rates constrained for production optimisation, projected to be between 250 Mcfd and 350 Mcfd. The well tested 1.9% helium and logs identified 96+ feet of gas column in the Lyons Sandstone Formation.

The third-party owned Red Rocks helium project adjoins Blue Star's Galactica Project. Development of Red Rocks further supports the commercialisation of the Galactica Project. Blue Star has been advancing engineering work on Galactica related to CO2 removal, purification and sale prior to helium processing via the IACX helium recovery unit. Engineering and market analysis continues to optimize development configurations, production forecasts, and cost estimates.



The spudding of the Jackson-4 well is a significant milestone for Helium One Global Ltd, as it brings the company one step closer to increasing its helium production. The Jackson-4 well is part of the broader Galactica/Pegasus development, which has already demonstrated promising helium reserves with four existing discoveries delivering gas flows of 125 to 412 Mcfd with helium concentrations between 2.0% and 6.1%. The recent State-16 well, drilled in June 2024, further confirmed the project's potential with production capability of up to 441 Mcfd and 1.9% helium content.

The spudding of the Jackson-4 well is expected to provide valuable data on the production potential of the well, which will be used to estimate its helium output. Once the well is completed and tied-in to production facilities, it will contribute to the overall helium output of the Galactica Project. This, in turn, will help Helium One Global Ltd meet the growing global demand for helium and potentially increase its revenue.

In terms of the production timeline, the drilling of the Jackson-4 well is expected to take several weeks, followed by wireline logging, flow and pressure readings, and ultimately the completion and tie-in of the well to production facilities. This process is expected to contribute to the overall helium production timeline for the Galactica Project, which is a strategic asset in addressing the global helium supply deficit.



In conclusion, the spudding of the Jackson-4 well at the Galactica Project is a positive development for Helium One Global Ltd, as it brings the company closer to increasing its helium production and meeting the growing global demand for this essential resource. The well's production potential will be evaluated through data collected during the drilling and testing process, which will ultimately contribute to the overall helium output of the project.