Helium One Global Ltd: Drilling Progress at Jackson-31 Well

Helium One Global Ltd (HE1:LSE), the primary helium explorer in Tanzania with a 50% working interest in the Galactica-Pegasus helium development project in Colorado, USA, has announced significant progress in its drilling operations at the Jackson-31 well. The company's shares have been on an upward trajectory, reflecting investors' confidence in its helium exploration and development projects.

The Jackson-31 well, located in Las Animas County, Colorado, is an attractive target for helium exploration due to its geological characteristics, such as a helium-rich natural gas reservoir, proximity to existing infrastructure, and accessibility, even during winter conditions. The well is part of the Galactica-Pegasus helium development project, which is operated by Blue Star Helium Ltd (ASX: BNL). This strategic partnership allows Helium One Global to leverage Blue Star's expertise and resources in helium exploration and production.

The drilling progress at the Jackson-31 well is notable for several reasons when compared to other helium exploration projects in the region. The rig was mobilized to the well location in early February 2025, and drilling operations were expected to commence shortly after rigging up. This timeline is comparable to other drilling projects in the region, as it aligns with typical industry practices and weather conditions. The well is expected to have a minimum flow rate of 0.5 million cubic feet per day with a helium concentration of 4.7%. This concentration is higher than the average helium concentration found in natural gas, indicating a potentially more economical and efficient helium extraction process.

The drilling campaign at the Jackson-31 well is expected to include three additional approved wells, with the final drilling sequence to be confirmed after the completion of Jackson-4. This planned drilling sequence shows a strategic approach to resource exploration and development, focusing on maximizing helium recovery and minimizing operational risks.

The positive drilling results, combined with Helium One's unique market position and relatively low current valuation, could lead to an increase in the company's share price and market capitalization. The company's share price has been on an upward trend, reflecting investors' confidence in its helium exploration and development projects. As of February 26, 2025, Helium One's share price is 1.74, with a market capitalization of £92.49m. Liberum, a 'buyer' with a 20p price target, has noted that the DST results are highly encouraging and that a subsequent EWT may provide the potential to fast-track production. If Liberum's price target is achieved, it would represent a significant increase in Helium One's share price and market capitalization.

In conclusion, the drilling progress at the Jackson-31 well in the Galactica Project is a positive development for Helium One Global Ltd. The well's geological characteristics, strategic location, and planned drilling sequence indicate a well-planned and executed exploration and development strategy. The company's share price and market capitalization could be positively impacted by the drilling results, given its current valuation and market position. Investors should monitor the company's progress and the broader market conditions to make informed investment decisions.