Helium One Global Ltd (LSE:HE1), the helium exploration and development company with operations in Tanzania and a 50% working interest in the Galactica-Pegasus project in Colorado, has provided an operational update covering helium production, planned drilling and potential carbon dioxide commercialisation in the United States, alongside exploration activities at its Southern Rukwa project in Tanzania.
The update follows an announcement by joint venture operator Blue Star Helium on 30 October 2026, confirming continued helium deliveries from the Pinon Canyon processing facility and outlining plans to increase production during 2027.
Colorado Helium Production Continues to Increase
Blue Star Helium reported that six tube trailers have now completed scheduled helium deliveries from the Galactica-Pegasus project.
The Pinon Canyon facility remains in its production ramp-up phase, which is expected to continue into 2027 as the joint venture works towards sustained commercial operations.
The operator reported helium sales cash receipts of A$0.46 million during the quarter on a 100% joint venture basis. Blue Star’s share amounted to approximately A$0.19 million after royalties and before production taxes.
Helium One’s share of the sales proceeds will be transferred in accordance with the terms of the Joint Operating Agreement.
The joint venture is assessing opportunities to increase output from existing wells, including potentially deepening producing wells to access additional reservoir intervals and improve gas flow rates.
Three New Wells Planned for March 2027
The Galactica-Pegasus joint venture plans to drill three additional production wells for connection to the Pinon Canyon processing facility.
However, permitting has taken longer than originally anticipated, with regulatory approvals now expected during the December 2026 quarter.
Blue Star currently anticipates drilling will commence in March 2027, subject to the necessary approvals.
Successful development of the new wells could increase raw gas throughput and helium production.
Based on current estimates, the operator does not expect additional helium processing capacity to be required at Pinon Canyon to accommodate production from the planned wells or potential deepening of existing wells.
Carbon Dioxide Sales Remain Under Discussion
The joint venture is continuing discussions with several potential commercial partners regarding the sale of carbon dioxide produced from the project.
The Jackson-27 well, which contains approximately 98.3% carbon dioxide, is expected to be connected to the processing infrastructure when commercial CO2 sales commence.
Blue Star indicated that CO2 liquefaction and sales remain dependent on finalising commercial arrangements and completing additional modifications to the processing facility.
If successfully commercialised, CO2 production could provide a supplementary revenue stream alongside helium sales.
No confirmed commencement date for CO2 sales has been announced.
Galactica-Pegasus Expansion Targets Additional Drilling Locations
The joint venture has identified up to 30 potential drilling locations across the wider Galactica-Pegasus project area.
Production wells drilled to date have targeted the Upper Lyons sandstone formation, while future development plans will also consider opportunities within the Lower Lyons formation.
The partners intend to assess further drilling programmes and the potential development of additional processing facilities to support production across the broader project area.
The Galactica-Pegasus development is expected to have a production life exceeding 12 years.
Blue Star also indicated that development activities at Pegasus could begin from 2027, subject to the joint venture’s agreed work programme and available funding.
Southern Rukwa Exploration Advances in Tanzania
Helium One confirmed that the farm-out process for its Southern Rukwa helium project in Tanzania remains ongoing, supported by international advisory firm PVE Consulting Ltd.
The company is also continuing to evaluate results from the extended electric submersible pump (ESP) testing programme completed earlier in 2026.
Separately, Helium One has completed three shallow vertical stratigraphic wells near the Itumbula helium discovery within its 480-square-kilometre Mining Licence area.
Each well was drilled to a depth of less than 100 metres using a local water well drilling contractor.
The programme was designed to identify shallow basement rock and improve geological and seismic understanding ahead of planning the first cluster of basement development wells.
These future wells are intended to target helium within the fractured basement formation.
The three recently completed stratigraphic wells were not designed to test for helium production but have provided additional geological information to support future development planning.
More About Helium One Global
Helium One Global Ltd is a helium exploration and development company with projects in Tanzania and the United States.
The company holds a 50% working interest in the Galactica-Pegasus helium development project in Colorado, where production is being ramped up through the Pinon Canyon processing facility.
In Tanzania, Helium One is advancing its Southern Rukwa project, including further evaluation of the Itumbula discovery and planning for potential basement helium development.
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