Helium One (AIM: HE1) hits first gas at Galactica as Tanzania-U.S. strategy moves into revenue mode

Helium One Global Ltd (AIM: HE1) has achieved first gas at the Galactica-Pegasus helium project in Colorado, marking its transformation from exploration to early production. The milestone unlocks short-term sales opportunities starting January 2026 and sets the stage for a revenue-generating scale-up through 2026 via additional well tie-ins and infill drilling. Helium One holds a 50% interest in the project operated by Blue Star Helium Ltd (ASX: BNL).

This development also positions Helium One to evolve beyond its core Tanzanian assets by leveraging U.S.-based output to navigate pricing volatility and supply bottlenecks in the global helium market.

What does achieving first gas at Galactica mean for Helium One’s dual-continent strategy?

The successful commissioning and start-up of the Pinon Canyon processing plant enables Helium One and operator Blue Star Helium Ltd to begin commercial production from the Galactica-Pegasus field. Importantly, this isn’t a trial phase or an extended well test. It is a shift into steady-state processing mode backed by drilled and proven reserves in Colorado’s Lyons Formation.

This is the company’s first transition from exploration to production—and it comes outside of its original Tanzanian domain. Helium One’s management has been vocal about the significance of this shift, suggesting it marks a broader redefinition of the company’s portfolio logic: from frontier exploration risk toward infrastructure-backed monetization in an already operational jurisdiction.

While the Tanzanian Rukwa Project remains the company’s flagship development, Galactica provides a more immediate revenue stream, partially insulating Helium One from the regulatory, infrastructure, and executional hurdles associated with developing African onshore assets.

How will Helium One approach offtake and pricing in a softening helium market?

The helium pricing cycle in 2025 has been marked by notable softness, largely driven by overhang from delayed offtake agreements and supply stabilization from existing global producers. However, both Helium One and Blue Star Helium are positioning their commercial strategy to ride the expected rebound through H1 2026.

The plan is deliberately sequenced. Short-term offtake contracts are being targeted first to begin generating revenue in January 2026. These will be followed by longer-term partnership-style offtake agreements once production scales and stabilizes. This allows the operators to remain flexible, avoiding long-term price lock-ins while also testing operational reliability before full ramp-up.

Blue Star has reportedly created a specialized commercial committee that includes board-level and U.S.-based executive oversight. This structure enables closer engagement with helium buyers—especially those in sectors such as semiconductor manufacturing, medical imaging, and aerospace, which are sensitive to purity levels and delivery guarantees.

Can the Galactica-Pegasus drilling program sustain full plant utilization through 2026?

The six-well development campaign completed earlier in 2025 appears to have delivered solid reservoir performance. The Lyons Formation has yielded helium concentrations up to 3.3%, and importantly, demonstrated flow potential suitable for continuous output.

Based on Helium One’s latest update, the Pinon Canyon facility is expected to maintain full operational capacity through infill and expansion drilling. With a project life now estimated to exceed 12 years, the underlying resource base offers a long enough runway to anchor medium-term commercial planning. Near-term activities will focus on tying in additional wells and optimizing flowrates for stability.

There is some execution risk in scaling these tie-ins and ensuring plant uptime remains consistent. However, the rapid commissioning timeline—just over a year from asset acquisition to first gas—indicates project delivery capabilities that exceed many early-stage upstream helium ventures.

How does Galactica compare to the Rukwa project in Tanzania from a capital returns perspective?

Strategically, Galactica represents a much faster path to cash generation than the Rukwa Project in Tanzania. Although the Rukwa helium discovery at Itumbula West-1 demonstrated promising concentrations (5.5% helium continuously flowed during 2024’s extended well test), it remains in the early appraisal and development licensing stage.

Helium One formally secured its 480 km² mining license for Rukwa only in July 2025, and while that was a key regulatory milestone, full-scale infrastructure buildout and offtake negotiations in East Africa are likely to take longer due to logistical and financing complexity.

By contrast, Galactica benefits from U.S. infrastructure, permitting norms, and market proximity. It also allows Helium One to diversify political and execution risk, especially critical in a commodity market with low elasticity and limited spot trading.

In effect, Galactica is helping to subsidize and de-risk Rukwa, giving the company breathing room to avoid premature dilution or unfavorable joint venture terms on its African flagship.

What investor sentiment signals are emerging around Helium One’s shift toward U.S. production?

Helium One’s London-listed shares (AIM: HE1) have seen periodic spikes on news related to the Tanzanian discovery, but these were often tempered by execution delays and speculative volatility. The successful operationalization of Galactica is the first proof point of revenue-generating capability—and that changes the valuation framework for institutional investors.

It is now possible to start modeling Helium One on a forward cash flow basis, rather than pure exploration upside. That alone may attract a different class of capital, especially funds seeking exposure to critical material supply chains outside of Chinese influence.

If helium prices firm as expected in H1 2026 and initial offtake agreements translate into recurring income, Helium One could reposition itself not just as a helium story, but as a cash-generating junior with optionality on global scarcity pricing. Institutional interest will hinge on execution in the next two quarters and clarity on volumes tied to long-term contracts.

Could Galactica production timelines signal broader changes in helium market dynamics?

The global helium supply chain has historically been constrained by long permitting cycles, geopolitical chokepoints (notably in Qatar, Russia, and Algeria), and aging infrastructure. The U.S. Bureau of Land Management’s helium reserves are being phased out, further tightening domestic availability.

In this context, successful new supply coming online in under 18 months—such as Galactica—is not just a company milestone, but an industry inflection point. It proves that modular, independently operated helium projects with leaner capex and faster development cycles can be viable.

This could accelerate the shift toward mid-tier independent helium producers supplying critical end markets directly, bypassing traditional aggregation hubs and possibly influencing pricing mechanisms over time. For Helium One and Blue Star, that’s not just a tactical win—it’s strategic validation.

Key takeaways on Helium One’s first gas milestone at the Galactica helium project

• Helium One Global Ltd has achieved first gas at the Galactica-Pegasus project, enabling short-term offtake sales from January 2026 and marking a shift to revenue generation.
• The Pinon Canyon processing facility is now fully operational, with six wells drilled and additional tie-ins planned to maintain capacity through H1 2026.
• Short-term contracts will be used to initiate sales, followed by longer-term partnerships as production stabilizes and volumes increase.
• Helium One’s 50% stake in the Colorado-based project offers faster monetization than its Rukwa project in Tanzania, which remains in development.
• The successful start-up reflects a strategic diversification beyond frontier exploration into mature-market asset delivery and commercial scaling.
• Blue Star Helium Ltd is leading operational execution and offtake structuring through a dedicated commercial committee engaging directly with U.S. buyers.
• Institutional investor sentiment could shift if recurring cash flows are realized and pricing conditions improve in early 2026.
• Galactica’s rapid development timeline demonstrates the viability of modular helium plays outside traditional supply geographies.