Helium One has acquired a 50% stake in Blue Star Helium’s Galactica-Pegasus project in Colorado, following a farm-out deal signed back in August.
Located in the helium fairway of Las Animas County, the Blue Star Helium site is projected to produce both helium and carbon dioxide (CO2). Post deal, Blue Star will remain the operator of the project.
Read more: Helium One to acquire 50% stake in Blue Star Helium’s Colorado project
Helium paid Blue Star $1.5m for past costs and funding six development wells, each capped at $450,000.
Trent Spry, Managing Director and CEO of Blue Star, described the news of a landmark agreement that marks the first step in the company’s plans to accelerate growth across its Las Animas portfolio.
“With the farm-in complete, we can now apply our full weight behind executing the Galactica project.”
The Galactica-Pegasus field was discovered by Blue Star in 2022 via the JXSN#1, #2, #3, and #4 wells. The wells showed gas bearing columns of up to 230 feet containing gas with between 2% to 6% helium.
In June 2024, Blue Star drilled the first development well at Galactica. The State016 development well flowed 1.9% helium at 285 Mcfd, in addition to 70% CO2.
First production from phase one of Galactica-Pegasus development is expected in the first half 2025.
MENA Industrial Gases Conference
In 2024, the Middle East & North Africa region home to both an enviable climate in renewable resources and investment and a bold vision in decarbonisation, green energy and industrial value chains.
From Saudi Arabia to Qatar, the UAE to Oman, and Mauritania to Morocco, there are promising gas and energy ecosystems-in-the-making. Vision 2030 is the mantra, and global leadership the goal.
But how can a vision for 2030 translate to a vision for industrial gas and equipment growth?
Join gasworld in November 2024 as its MENA Industrial Gases Conference 2024 returns to Abu Dhabi.
To attend, sponsor and for more information, visit: https://bit.ly/GWMENA-S24
