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Highlights

  • Jackson-4 well demonstrates natural gas flow, with rates reaching 190 Mcfd and potential stabilised flow rates of 250-350 Mcfd.
  • Helium concentrations up to 1.18% detected in gas samples, aligning with expectations.
  • High-quality Upper Lyons Sandstone Formation confirms permeability and gas saturation, supporting future production potential.

Helium One Global (LSE:HE1), a leading helium explorer in Tanzania and the United States, has provided an operational update on the Jackson-4 well at the Galactica-Pegasus helium project in Colorado. The announcement follows a report from Blue Star Helium (ASX:BNL), detailing promising flow test results and helium concentrations.

Natural Gas Flow and Well Performance

The Jackson-4 well reached its total depth (TD) at 1,260 feet (384m), encountering the Upper Lyons Sandstone Formation at 1,198 feet (365m). Notably, no water was encountered during drilling, and wireline logs confirmed a gas-saturated, high-quality reservoir.

Since drilling operations were completed, the well has demonstrated increasing natural gas flow rates, reaching 190 Mcfd, with significant pressure build-up post-testing. This indicates high permeability and good reservoir communication, which are key factors for sustained production.

Based on independent engineering studies and observed flow rates, projected stabilised flow rates for Jackson-4 are expected to be between 250 and 350 Mcfd, with an upper potential of 450 Mcfd under optimal conditions.

Helium and CO₂ Concentrations Meet Expectations

Initial gas sampling analysis has revealed a helium concentration of up to 1.18%, along with 85.93% CO₂ and 12.89% nitrogen. These results are consistent with pre-drill expectations, particularly for Jackson-4, which is located in the southern part of the Galactica-Pegasus project area—an area projected to contain higher CO₂ and lower helium concentrations compared to wells in the north and west.

Maintaining optimal plant throughput for beverage-grade CO₂ production requires a consistent CO₂ feed. The high CO₂ concentration in Jackson-4 supports efficient gas blending for plant operations, making it a valuable resource beyond helium production alone.

Engineering Studies Support Production Potential

Independent engineering studies of the Galactica-Pegasus project have assessed permeability and projected well performance. The findings, based on results from Jackson-4 and previous discovery wells (JXSN-1, JXSN-2, JXSN-3, and State-16):

  • Permeability ranges from 300 to 750 millidarcies (mD), indicating a reservoir with excellent gas flow characteristics.

  • Projected initial flow rates for similar wells range from 334 to 780 Mcfd at a wellhead pressure of 6 psia.

  • The State-16 well in the Upper Lyons Formation previously recorded a natural flow rate of 150 Mcfd. Jackson-4, with a higher initial flow of 190 Mcfd, shows greater permeability and production potential.

Development plans for the project include vacuum compression systems to optimise wellhead pressures between -1 psig and -6 psig, further enhancing production efficiency.