Helium One reports encouraging flow testing at Jackson-29

(Sharecast News) - Helium One Global reported encouraging flow test results from the Jackson-29 well at the Galactica Project in Colorado on Tuesday, where it holds a 50% working interest in a joint venture with Blue Star Helium. The AIM-traded firm said the well, drilled to a total depth of 1,183 feet within the Lyons Sandstone Formation, encountered high-quality, gas-saturated reservoir rock without the presence of water, as expected.

It said the Jackson-29 well had been flowing naturally since reaching total depth, with current flow rates exceeding 320,000 cubic feet per day.

Stabilised flow rates were projected at between 350,000 and 450,000 cubic feet daily, with a maximum potential of 550,000, based on engineering studies and observed reservoir performance.

Pressure build-up data indicated strong permeability and reservoir communication.

Preliminary gas analysis returned a helium concentration of up to 3.30% air-corrected, alongside 48.66% carbon dioxide and 48.04% nitrogen, consistent with geological expectations.

The Galactica Project, which forms part of the larger Galactica-Pegasus development discovered in 2022, offered multiple potential product streams and is located adjacent to the third-party Red Rocks helium project, the board said.

Helium One is funding the initial $0.45m of drilling under its farm-in agreement, and said the results supported the commercial viability of the Galactica Project as it continued to progress development plans with Blue Star.

At 0939 BST, shares in Helium One Global were down 1.46% at 0.91p.

Reporting by Josh White for Sharecast.com.