Helium One Global Ltd: Drilling Progress at the Galactica-Pegasus Project
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF), a resource exploration company specializing in helium, has recently provided an update on the ongoing drilling operations at its Galactica-Pegasus project in Tanzania. The Jackson-31 well, which is part of the larger Rukwa Project, has seen significant progress.
Drilling Completed in the Intermediate Section
According to the latest announcement, the drilling of the intermediate section of the Jackson-31 well is now complete. This section of the well, which targets the Mwangi Sands, has yielded promising results, with the company reporting gas shows and good formation quality. The intermediate casing has been set, and cementing operations are underway.
Resuming Drilling to Target the Lyons Sandstone Formation
Following the completion of the intermediate drilling and cementing, the focus will shift to the targeted Lyons Sandstone Formation. This formation is known for its high helium content, making it a primary target for Helium One. The company expects to resume drilling operations in the coming days.
Impact on Helium One Global Ltd
The progress at the Jackson-31 well is a significant milestone for Helium One, as it brings them closer to their goal of discovering economically viable helium resources. Successfully drilling into the Lyons Sandstone Formation would represent a major step forward in their exploration efforts. Investors have responded positively to this news, with Helium One’s share price increasing by over 20% following the announcement.
Impact on the World
The global helium market is currently dominated by a few major producers, with the United States and Russia being the largest suppliers. However, the increasing demand for helium, driven by the growth in the technology sector and the shift towards renewable energy, has led to concerns about supply security and price volatility. The discovery of new helium resources, such as those being pursued by Helium One, could help alleviate these concerns and contribute to a more stable and diverse helium market.
- Helium is a critical component in various industries, including MRI scanners, welding, and semiconductor manufacturing.
- The global helium market is expected to grow at a CAGR of over 5% between 2021 and 2028.
- The discovery of new helium resources could lead to increased competition and lower prices, benefiting consumers and industries reliant on helium.
Conclusion
In conclusion, Helium One Global Ltd’s progress at the Jackson-31 well represents an important step forward in their efforts to discover economically viable helium resources. The upcoming drilling operations targeting the Lyons Sandstone Formation hold significant potential, not only for Helium One but also for the global helium market. The discovery of new helium resources could help address concerns about supply security and price volatility, contributing to a more stable and diverse market. As the drilling operations continue, investors and industry observers will be closely watching Helium One’s progress.
Stay tuned for further updates on this exciting development in the world of helium exploration.
