Helium One Global Ltd reported an increase in flow rates from the State-9 well as the six-well Galactica drilling programme completes in Las Animas County, Colorado, USA.
PROCESSING
Since total depth in the Upper Lyons Sandstone formation, the flow rate in State-9 has increased to more than 360 thousand cubic feet per day (Mcfd).
Projected stabilised flow rates are 400 Mcfd to 500 Mcfd, with a maximum potential of 600 Mcf.
Early samples returned helium concentration of up to 1.52% (air-corrected) and 80.48% carbon dioxide.
The company said that consistent good results from all the wells confirmed the “production potential and near-term monetisation opportunity”.
Along with partner and operator Blue Star Helium, the companies will finalise the development plan ahead of initial production during Q4 2025 from the Pinon Canyon plant.
Cimarron Midstream will design and operate the helium and carbon dioxide processing plant which will be installed close to the Jackson-31 well.
On approval of the plant’s location, civil works will begin alongside tie-in of initial production wells, followed by mobilisation of equipment to Pinyon Canyon.
Subject to operational permits, environmental compliance and final assessments, the plant will then be tested and commissioned.
Initial production will provide early cash flow as well as operational data for full-field development plans for Galactica and the broader Galactica-Pegasus project.
EXPANSION
Helium One said that expansion could involve “an initial additional six to ten infill and expansion drilling locations at Galactica” with a further 20 to 30 potential drilling locations within the greater Galactica-Pegasus area.
Future operations will also consider accelerating and optimising production from the Lower Lyons Sandstone formation, in conjunction with the Upper Lyons Sandstone formation.
The JV is additionally developing its off-take strategy to establish operating partners “across the entire helium supply chain”.
The companies’ “phased approach” involves evaluating the potential for a second processing facility at a new location to develop the project’s “extensive” resources.
Chief executive officer Lorna Blaisse added: “We appreciate the efforts of Blue Star in driving this operation, and very much look forward to the next steps in bringing these wells online and targeting first production and cash flow in Q4 this year.
“We have a clear development plan in place for the construction of the processing facility, the tying in of the wells and the subsequent testing and commissioning to take us through to first production and are excited about the wider field development potential across the Galactica-Pegasus resource.”