Helium One Provides Positive Update on Jackson-31 Well Flow Testing
Why we think this is good
The RNS provides positive updates on the flow testing and gas sampling results from the Jackson-31 well at Helium One's Galactica helium project. The well has demonstrated strong reservoir communication and increasing natural flow rates, with projected stabilised flow rates of 300-400 Mcfd and a maximum potential of 500 Mcfd. Initial gas samples have also shown helium concentrations up to 2.2% air corrected, which is expected to represent around 2.3% to 2.5% helium in the reservoir. These results suggest progress in the development of the Galactica project, though the information does not constitute an explicit profit upgrade or trading significantly ahead of market expectations.
Key Points
- Jackson-31 well flowed naturally during drilling and at total depth, demonstrating strong reservoir communication
- Flow testing has seen increasing natural flow rates to around 250 Mcfd of total gas
- Projected stabilised flow rates constrained for production optimisation of 300-400 Mcfd, with a maximum potential rate of 500 Mcfd
- Early gas samples have returned a helium concentration up to 2.2% air corrected (up to 1.9% not air corrected), expected to represent around 2.3% to 2.5% helium in the reservoir
Summary
Helium One Global (AIM: HE1) has provided an update on the flow testing and gas sampling analysis for the Jackson-31 well at its Galactica helium project in Colorado, USA. The well has demonstrated strong reservoir communication and increasing natural flow rates, with projected stabilised flow rates of 300-400 Mcfd and a maximum potential of 500 Mcfd. Initial gas samples have also shown helium concentrations up to 2.2% air corrected, which is expected to represent around 2.3% to 2.5% helium in the reservoir. These results suggest progress in the development of the Galactica project, though the information does not constitute an explicit profit upgrade or trading significantly ahead of market expectations.