Helium One confirms free gas discovery at Jackson-4 well, strengthening Galactica Project development

Helium One Global Ltd has reported a significant breakthrough in its exploration efforts, confirming the presence of free gas at its Jackson-4 well in Colorado, USA. The well, which was drilled to a total depth of 1,260 feet (384 meters), exhibited strong natural flow during drilling and at its final depth, reinforcing the potential of the broader Galactica Project.

The confirmation of gas-saturated sands in the Upper Lyons Sandstone Formation represents a major step forward for the AIM-listed company, which holds a 50% working interest in the project. Operated by Blue Star Helium Ltd, the Galactica Project is a key component of ongoing efforts to develop sustainable helium supply solutions. The latest results further validate the reservoir’s potential, highlighting Helium One’s growing footprint in the highly constrained helium market.

What Does the Jackson-4 Well Discovery Mean for Helium One’s Growth?

The latest drilling results from Jackson-4 well confirm the presence of 62 feet (18.9 meters) of gas-saturated sandstone within the Upper Lyons Formation. Petrophysical analysis from nearby offset wells indicates high reservoir quality, with porosity ranging between 22% and 26%. Notably, no water was encountered during drilling, reducing concerns about potential reservoir dilution and increasing confidence in the well’s production potential.

Initial gas samples collected during drilling have been sent for laboratory analysis to determine helium and carbon dioxide concentrations. However, due to the use of air-drilling methods, these samples will require air correction to ensure accurate readings. In preparation for further testing, the company is installing a wellhead to facilitate surface pressure measurements and additional gas sampling. If successful, Jackson-4 is expected to be completed and connected to production infrastructure, accelerating the commercial viability of the Galactica Project.

How Does Jackson-4 Compare to Previous Galactica Project Discoveries?

The confirmation of free gas at Jackson-4 aligns with the broader success of the Galactica/Pegasus development, which has been under active exploration since its discovery in 2022. Previous wells, including JXSN-1 through JXSN-4, have recorded gas flows ranging between 125 and 412 thousand cubic feet per day (Mcfd), with helium concentrations varying between 2.0% and 6.1%.

Additional appraisal work at the State-16 well, completed in June 2024, further reinforced the project’s potential. Engineering evaluations indicated that State-16 could produce up to 441 Mcfd, with sustained production rates projected between 250 and 350 Mcfd. More recently, Jackson-31, drilled in February 2025, demonstrated even greater production potential, with stabilized flow rates estimated between 300 and 400 Mcfd and peak rates reaching 500 Mcfd.

The development of the Galactica Project is supported by adjacent helium discoveries, including the Red Rocks project, which is owned by a third party. This further strengthens the commercial case for large-scale helium production in the region. Blue Star Helium is currently advancing engineering work to optimize CO2 removal, helium purification, and processing strategies, ensuring maximum efficiency in resource extraction and commercialization.

What Role Does Helium One’s Tanzanian Portfolio Play in the Company’s Expansion?

While its joint venture in the United States is progressing, Helium One continues to focus on its wholly owned helium assets in Tanzania. The company holds prospecting licenses in two key regions, the Rukwa Project and the Eyasi Project, both of which are located in helium-rich rift basins.

The Rukwa Project, situated in the southern Rukwa Rift Basin, spans 1,664 square kilometers and has emerged as Helium One’s flagship asset. A series of successful exploration campaigns culminated in the 2023/24 drilling season, when the company confirmed a significant helium discovery at Itumbula West-1. An extended well test conducted in the third quarter of 2024 yielded a steady helium flow of 5.5% to the surface, prompting Helium One to file a mining license application with the Tanzanian government.

The Tanzanian Mining Commission has since offered Helium One a mining license consistent with its application, positioning the company for potential near-term development. With the global helium market facing continued supply constraints, the company’s diversified asset base—spanning both Tanzania and the United States—strengthens its ability to capitalize on growing demand.

How Has Helium One’s Stock Performance Reacted to Recent Developments?

Despite its operational advancements, Helium One Global Ltd (AIM: HE1) has experienced stock price volatility. As of March 24, 2025, the company’s shares closed at £0.0101 on the London Stock Exchange, reflecting a 39.39% decline over the past year. Its 52-week range shows a low of £0.0050 and a high of £0.0215, with a current market capitalization of £58.33 million.

The recent confirmation of free gas at Jackson-4 has the potential to boost investor confidence, particularly as the company moves toward commercialization. However, helium exploration remains a high-risk sector, and market sentiment has been cautious.

Meanwhile, Blue Star Helium Ltd (ASX: BNL), the operator of the Galactica Project, has also faced challenges in stock performance. Its shares closed at AU$0.008 on March 24, 2025, with a 52-week low of AU$0.003 and a high of AU$0.012. The stock has declined by 67.74% over the past year, despite positive operational progress. Blue Star currently holds a market capitalization of AU$16.32 million.

Given the ongoing developments, a ‘Hold’ position may be advisable for current investors, allowing them to monitor the results of upcoming well tests and production strategies. Prospective investors should consider the inherent risks associated with small-cap exploration companies and assess their long-term potential before entering the market.

What’s Next for Helium One and the Galactica Project?

Following the successful Jackson-4 well drilling, the rig is being mobilized to the Jackson-29 SWNW 3054 well site, where pad construction is currently in progress. If Jackson-4 delivers positive results in upcoming flow tests, it will be tied into production facilities, further advancing the Galactica Project toward commercial output.

As global helium demand continues to rise—driven by applications in medical imaging, semiconductor manufacturing, and space exploration—Helium One’s strategic positioning becomes increasingly valuable. With its dual presence in Tanzania and the United States, the company is well-placed to benefit from a market experiencing supply constraints and rising prices.

Helium One’s ability to transition from exploration to production will be a critical factor in determining its future market position. Investors and industry analysts will closely watch the company’s next steps, particularly regarding regulatory approvals, infrastructure development, and production scaling at both its Tanzanian and U.S. projects.