Helium One Global Ltd (AIM: HE1), a helium explorer operating across Tanzania and Colorado, USA, has issued an operational update covering progress at its 50% working interest Galactica-Pegasus project and its Southern Rukwa Project in Tanzania. The update, relayed from operator Blue Star Helium (ASX: BNL), confirms active helium sales and a production ramp-up phase expected to continue into 2027. Investors will also note that three shallow stratigraphic wells have been successfully drilled near the Itumbula helium discovery in Tanzania, advancing the company's understanding of the Basement helium play.

Key Points

  • Helium One Global Ltd (AIM: HE1) — primary helium explorer in Tanzania with a 50% working interest in Galactica-Pegasus, Colorado, USA
  • Blue Star Helium reports A$0.46 million in cash receipts from helium sales during the quarter on a 100% joint venture basis, with Helium One's share to be forwarded under the Joint Operating Agreement
  • Three new wells planned for drilling from March 2027; regulatory approvals now expected during the December 2026 quarter following permitting delays
  • Investors should watch for CO₂ commercialisation progress, farm-out developments at Southern Rukwa, and confirmation of drilling permits at Galactica-Pegasus

Galactica-Pegasus Helium Sales Reach A$0.46 Million as Pinon Canyon Facility Enters Ramp-Up Phase

Operator Blue Star Helium reports that six tube trailers have delivered on a scheduled basis and that the Pinon Canyon facility is now in a production ramp-up phase anticipated to continue into 2027. Cash receipts from helium sales totalled A$0.46 million during the quarter on a 100% joint venture basis, with the operator's share approximately A$0.19 million after royalties and before production taxes. Helium One's 50% share is to be forwarded in accordance with the Joint Operating Agreement. The operator is also evaluating the potential to deepen existing production wells to expose additional reservoir and increase flow rates, without requiring expansion of the Pinon Canyon Plant's helium processing capacity.

Three New Galactica-Pegasus Wells Scheduled for March 2027 Drilling After Permitting Delays

The joint venture had planned to drill three new wells for tie-in to the Pinon Canyon Plant, but permitting has taken longer than anticipated. Blue Star now expects relevant regulatory approvals during the December 2026 quarter, with drilling commencing in March 2027. The broader Galactica-Pegasus area contains up to 30 potential drilling locations, with all production wells drilled to date situated within the Upper Lyons sandstone. Future drilling will also consider the Lower Lyons formation. The project is expected to have a production life exceeding 12 years, and development at the Pegasus area from 2027 remains subject to the joint venture work programme and funding.

CO₂ Commercialisation at Jackson-27 Well Remains Subject to Finalising Commercial Arrangements

The Jackson-27 well, carrying a CO₂ concentration of approximately 98.3%, is being held in readiness for tie-in to coincide with the commencement of CO₂ sales. Blue Star reports it remains in active discussions with multiple parties. Commencement of CO₂ liquefaction and sales remains subject to finalising commercial arrangements and completing additional plant modifications. The announcement states that securing a commercial solution for the CO₂ product would represent a valuable secondary revenue stream alongside helium sales, though no timeline for concluding these arrangements was disclosed.

Three Shallow Stratigraphic Wells Successfully Drilled at Tanzania's Southern Rukwa Itumbula Discovery

At the Southern Rukwa Project within the 480 km² Mining Licence area in south-west Tanzania, Helium One has completed drilling of three shallow, vertical stratigraphic wells close to the Itumbula helium discovery. Each well was drilled to less than 100 metres using a local water well drilling contractor. The wells were designed to identify shallow Basement geology and improve seismic control ahead of planning for the first cluster of Basement development wells. The announcement notes these wells were not designed for helium testing but have advanced understanding of the Basement helium play. The farm-out process for the project continues with international advisory firm PVE Consulting Ltd.