Helium One Global has signed a deal to acquire a 50% stake in Blue Star Helium’s Galactica-Pegasus project in Colorado to expand its geographic footprint in the helium market.
Located in the helium fairway of Las Animas County, the Blue Star Helium site is projected to produce both helium and carbon dioxide (CO2).
Blue Star Helium has previously confirmed that the Galactica project contains confirmed discovery wells in the region flowing up to 6% helium and an average of 3%.
The initial programme, which has been funded by a capital raise, will require the drilling of six development wells, planned for Q4 2024. The initial wells are expected to be onstream and producing in the first half of 2025.
Full development of the programme for the Galactica project will require the drilling and tie-back of 15 wells, as well as the commissioning of relevant helium and CO2 processing equipment.
Lorna Blaisse, CEO of Helium One, says she is excited to energy into the partnership that will allow the company to expand its global footprint in the helium sector.
“Our primary projects in Tanzania remain our primary focus, but this development opportunity enables the company to potentially secure near-term cash flow to aid with progressing our Tanzanian asset.”
“We look forward to working with Blue Star in this new partnership and aim to draw on our learnings from another proven helium play in order to extend our knowledge to this new play as we advance towards producing assets.”
Read more: Helium One analyses Itumbula West next steps
If the transaction is successful, Blue Star will remain the operator of the project.
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