Helium One Global moves closer to production as Jackson-4 well reaches key depth

Helium One Global Ltd, a helium exploration company, has achieved a significant milestone in its drilling operations at the Galactica-Pegasus project in Colorado, USA. The company confirmed that the intermediate section of the Jackson-4 well has been successfully drilled to a measured depth of 1,123 feet (342 meters), a crucial step towards reaching the helium-rich Lyons Sandstone Formation.

With casing now installed, cementing operations are currently underway to ensure well integrity. Following this, a Cement Bond Log (CBL) will be performed to evaluate the bonding of the cement to the casing, a necessary step before drilling resumes towards the target total depth (TD). Once TD is reached, wireline logging will be conducted to assess reservoir quality and potential helium flow rates. If results meet expectations, the well will be fitted with a wellhead to enable flow and pressure testing, a step that could move Helium One Global closer to commercial production.

The Galactica-Pegasus project is a joint effort between Helium One Global and Blue Star Helium Ltd, with Helium One holding a 50% working interest. This drilling progress aligns with the company’s broader objective of securing high-purity helium reserves in response to increasing global demand.

Why Is the Jackson-4 Well Important for Helium Production?

The Jackson-4 well is part of a larger development plan within the Galactica-Pegasus project, which has shown strong helium potential since its initial discovery in 2022. Multiple wells drilled in the region, including JXSN-1 to JXSN-4, have recorded gas flow rates ranging from 125 to 412 thousand cubic feet per day (Mcfd), with helium concentrations between 2.0% and 6.1%.

Further exploration in June 2024, particularly at the State-16 well, strengthened confidence in the area’s commercial viability. Independent engineering assessments indicated that State-16 could produce up to 441 Mcfd, with projected stabilized rates between 250 Mcfd and 350 Mcfd under optimized production conditions. Logging data from the well revealed a 96-foot gas column within the Lyons Sandstone Formation, reinforcing the likelihood of commercially viable helium extraction.

The Jackson-4 well is expected to follow a similar trajectory, with its final depth expected to reach the Upper Lyons Sandstone Formation. If helium concentrations and flow rates are confirmed through upcoming testing, the well will be connected to existing production facilities, strengthening Helium One Global’s contribution to the helium supply chain.

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

The Galactica-Pegasus project is positioned as a critical asset in addressing the global helium supply shortage. Helium is a non-renewable and finite resource with applications in semiconductor manufacturing, medical imaging, space exploration, and cryogenics. Given the rising demand and recent supply constraints due to geopolitical factors, finding reliable, high-purity helium reserves has become a priority for the energy sector.

One of the project’s key advantages is its proximity to existing helium infrastructure, including the third-party-operated Red Rocks helium project. The presence of processing and distribution facilities in the region enhances the commercial potential of helium extracted from the Galactica-Pegasus site.

Beyond its U.S. operations, Helium One Global is also advancing exploration in Tanzania, where it holds 100% ownership of the Rukwa and Eyasi projects. The Rukwa Project, covering 1,664 square kilometers in the southern Rukwa Rift Basin, has shown promising results, with helium flows of 5.5% confirmed at Itumbula West-1 in Q3 2024. The company’s multi-regional approach aims to establish a diversified and secure helium supply chain to mitigate the risks associated with a single-source dependency.

How Has Helium One Global’s Stock Performed Amid These Developments?

Helium One Global Ltd (LSE: HE1) has experienced notable stock price fluctuations over the past year, reflecting both investor optimism and the speculative nature of early-stage helium exploration. As of March 21, 2025, the stock closed at 1.01 GBX, marking a 101% increase from its 52-week low of 0.50 GBX in June 2024. However, it remains below the 52-week high of 2.15 GBX, recorded in August 2024.

The company’s market capitalization is approximately £59.51 million, with around 5.92 billion shares in issue. While Helium One Global remains unprofitable, analysts maintain a cautiously optimistic outlook, with an average one-year price target of 3.67 GBX, suggesting potential upside based on successful well completions and future production.

In 2024, the company’s stock surged 284%, largely driven by helium discoveries in Tanzania. However, the volatility of the stock highlights the inherent risks associated with exploration-stage companies, making it crucial for investors to assess their risk tolerance before entering a position.

Is Helium One Global a Buy, Sell, or Hold?

For existing investors, a Hold position may be a prudent approach, allowing them to monitor ongoing developments without increasing exposure. The company’s helium exploration success, particularly at the Galactica-Pegasus project, presents an opportunity for growth, but its long-term performance remains dependent on commercial viability and market conditions.

For potential investors, Helium One Global represents a high-risk, high-reward opportunity. Given the ongoing global helium shortage and the company’s expansion strategy, its stock could benefit from future production milestones. However, as an exploration-stage company, it remains susceptible to market fluctuations and operational uncertainties.

What Lies Ahead for Helium One Global?

As drilling operations continue at Jackson-4, industry analysts are closely monitoring whether the well will meet expectations in terms of helium concentration and flow rates. If successful, the well will be completed and integrated into production infrastructure, solidifying Helium One Global’s role in helium extraction and supply.

In the broader market, helium prices are expected to remain elevated due to limited global supply and increasing demand. Helium One Global’s strategic positioning—through its U.S. and Tanzanian assets—offers a potential hedge against future supply disruptions.

By leveraging advanced helium purification technologies, including CO₂ removal systems and IACX helium recovery units, the company is working to optimize efficiency and reduce production costs. These technological advancements could further enhance the economic feasibility of helium extraction at its key project sites.

As the industry moves toward securing long-term helium availability, Helium One Global’s exploration efforts will play an increasingly important role. The successful progression of Jackson-4 drilling progress will not only impact the company’s market standing but could also contribute significantly to stabilizing the helium supply chain at a time of growing demand.