Helium One Global Ltd’s partner has deferred drilling at the Galactica-Pegasus helium project because of saturated ground caused by poor weather.
COSTS
The company holds a 50-50 joint venture with operator Blue Star Helium in the Las Animas County project, Colorado.
Ground conditions and snow melt prevented construction of well sites and access roads, but the companies are ready for mobilisation.
Blue Star has rescheduled mobilising the rig and drilling to mid-January to avoid standby costs over the Christmas period.
Without further snow or precipitation, construction could begin before the end of 2024.
Helium One said that the delay was unlikely to affect the overall project development timeline or targeted start of production in the first half of 2025.
In the meantime, work advances on engineering related to CO2 removal, purification and sale prior to helium processing via the IACX helium recovery unit.
Blue Star has also chosen its preferred power generation solution for Galactica-Pegasus.