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Highlights

  • Successful Drilling: Jackson-4 well reached a depth of 1,260 feet, confirming free gas presence.

  • Promising Reservoir Characteristics: Encountered 62 feet of gas-saturated sands with high porosity (22-26%).

  • Next Steps: Gas samples under laboratory analysis, with well head installation underway for flow testing.

Helium One Global (LSE:HE1), a leading helium explorer in Tanzania and a 50% stakeholder in the Galactica-Pegasus helium development project in Colorado, USA, has provided an update on the progress of the Jackson-4 well following an announcement from its joint venture partner, Blue Star Helium (ASX:BNL, OTC:BSNLF).

The Jackson-4 well was successfully drilled to a total depth of 1,260 feet (384m), encountering free gas as confirmed by wireline logs. The well naturally flowed during drilling and at total depth, indicating good reservoir communication.

Notably, 62 feet (18.9m) of high-quality gas-saturated sands were identified in the Upper Lyons Sandstone Formation, with porosity ranging from 22-26% based on petrophysical data from offset wells. Importantly, no water was encountered during drilling, further supporting the presence of a productive gas column.

Gas Analysis and Future Development

Early gas samples have been collected and are currently being analyzed to determine helium and CO2 concentrations. However, since air drilling was used, the samples will require air-correction adjustments.

Meanwhile, well head installation is in progress, paving the way for surface pressure readings, flow testing, and further gas sampling. If testing results are successful, the Jackson-4 well will be completed and prepared for connection to production facilities.

Following this, the drilling rig will be mobilized to the Jackson-29 SWNW 3054 well location, where pad construction is currently underway.

Galactica-Pegasus Development Progress

The Galactica project, part of the larger Galactica-Pegasus helium development, was first discovered by Blue Star in 2022 and features multiple potential product streams.

So far, four key discoveries (JXSN-1 to JXSN-4) at Galactica-Pegasus have recorded gas flows between 125 Mcfd and 412 Mcfd, with helium concentrations ranging from 2.0% to 6.1%. Additional appraisal drilling at State-16 (June 2024) and Jackson-31 (February 2025) has provided further confirmation of the project's commercial viability.

  • State-16 well has been assessed to produce up to 441 Mcfd, with stabilized rates expected between 250 Mcfd and 350 Mcfd. The well has logged 96+ feet of gas column in the Lyons Sandstone Formation, with helium concentrations of 1.9%.

  • Jackson-31 well is capable of a maximum production rate of 500 Mcfd, with stabilized rates projected between 300 Mcfd and 400 Mcfd.

Engineering and Commercial Outlook

Adjacent to the Galactica Project, the Red Rocks helium project—operated by a third party. Engineering efforts are ongoing to enhance CO2 removal, purification, and sale before helium processing using IACX helium recovery technology.

Blue Star, in collaboration with Helium One Global, is refining production forecasts and cost estimates to optimize development configurations. Under their farm-in agreement, Helium One is funding the first US$450,000 of the Jackson-4 well, highlighting its commitment to advancing the project.