Helium One Global advances Jackson-31 well drilling at Galactica-Pegasus project

Helium One Global Ltd, a leading explorer in the helium sector, has made significant progress at its Jackson-31 well within the Galactica-Pegasus helium development project in Las Animas County, Colorado, USA. The company, which holds a 50% working interest in the project, announced that the intermediate section of the Jackson-31 well has been successfully drilled to 1,080 feet. This milestone marks a crucial step in reaching the helium-rich Lyons Sandstone Formation, a key reservoir in the development.

As part of the ongoing operations, casing and cementing procedures are currently underway to secure the well’s integrity before advancing into deeper sections. Once cementing is completed, a Cement Bond Log (CBL) will be conducted to assess the bonding of the cement to the casing. Upon verification, drilling will proceed towards the planned total depth (TD) within the Lyons Sandstone Formation.

This advancement is part of Helium One Global’s broader strategy to expand helium production in response to increasing global demand. The company’s involvement in the Galactica-Pegasus development, alongside Blue Star Helium Ltd, underscores its commitment to securing high-purity helium sources through targeted exploration and drilling programs.

Why Is the Jackson-31 Well Crucial for Helium Production?

The Jackson-31 well is integral to the commercialisation of the Galactica-Pegasus helium project, which was originally discovered in 2022. This region has demonstrated substantial helium reserves, with multiple successful discoveries contributing to its development. The Galactica-Pegasus project features four wells—JXSN-1 to JXSN-4—which have reported gas flows between 125 and 412 thousand cubic feet per day (Mcfd), with helium concentrations ranging from 2.0% to 6.1%.

Further appraisal of the area through the State-16 well in June 2024 confirmed additional helium potential. Independent engineering assessments concluded that State-16 could produce up to 441 Mcfd, with projected stabilised rates between 250 Mcfd and 350 Mcfd for optimised production. Logging data revealed a significant 96-foot gas column within the Lyons Sandstone Formation, strengthening the project’s commercial prospects.

The Jackson-31 well is expected to follow a similar trajectory. Once drilling reaches total depth, wireline logging will be performed to evaluate reservoir quality and potential helium flow rates. A wellhead will then be installed to conduct flow and pressure tests. If these tests yield positive results, Jackson-31 will be completed and integrated into production facilities, further bolstering the project’s overall helium output.

What Role Does the Galactica-Pegasus Project Play in the Helium Industry?

The Galactica-Pegasus project is positioned as a strategic asset in addressing the global helium supply deficit. Helium is an essential resource with applications across healthcare, semiconductor manufacturing, space exploration, and scientific research. The project’s helium concentrations and stable gas flow rates offer a viable supply source amid growing concerns over shortages and price volatility.

The project benefits from its proximity to existing infrastructure, including the third-party-owned Red Rocks helium project, which adjoins Blue Star Helium’s operations. The development of Red Rocks complements the commercial potential of Galactica-Pegasus by enhancing regional helium production capabilities and providing synergies in processing and distribution.

Helium One Global’s participation in this venture aligns with its broader strategy to diversify helium supply sources. The company’s operational portfolio includes additional exploration assets in Tanzania, where it holds 100% equity in the Rukwa and Eyasi projects. The Rukwa Project, covering 1,664 square kilometres in the southern Rukwa Rift Basin, recently entered the appraisal phase following a successful helium discovery at Itumbula West-1. An extended well test conducted in Q3 2024 confirmed helium flows of 5.5% to the surface, reinforcing the project’s commercial viability.

How Is Helium One Global Strengthening Its Market Position?

Helium One Global’s strategic expansion into the US market through its 50% stake in the Galactica-Pegasus project enhances its global footprint. The partnership with Blue Star Helium Ltd provides access to a well-defined helium resource with established production potential. Additionally, engineering advancements related to carbon dioxide (CO₂) removal, helium purification, and processing via the IACX helium recovery unit are underway to optimise production efficiencies.

Market analysts suggest that helium prices will remain elevated due to constrained supply and increasing industrial demand. Helium One Global’s exploration and development activities position it favourably within this market dynamic. The company’s commitment to advancing projects like Jackson-31 ensures a steady pipeline of potential helium production, securing a foothold in a rapidly evolving industry.

The successful drilling and future completion of the Jackson-31 well represent a critical step in Helium One Global’s ongoing efforts to establish itself as a key player in helium exploration and production. As the company progresses towards commercial production at Galactica-Pegasus, industry stakeholders are closely monitoring developments, anticipating a substantial contribution to the global helium supply chain.