Helium One Global achieves first gas, begins ESP testing at Tanzania well
Helium One Global expects revenues to build through H1 2026 as its Galactica-Pegasus project in Colorado achieves first gas and moves into production stabilization with a 50% working interest. It has also started electrical submersible pump testing at its ITW-1 Tanzania well to assess deeper layers for higher helium flows.
1. US Project Moves into Production and Revenue Phase
Helium One Global Ltd. has transitioned its Galactica–Pegasus project in Colorado from commissioning to production stabilization, marking the delivery of first gas in late 2025. With a 50% working interest in the field, the AIM-listed company expects incremental revenues to commence in the first quarter of 2026 and steadily grow through the first half of the year. Initial daily output of 3,500 mcf (thousand cubic feet) is targeted to plateau at 10,000 mcf by mid-2026, generating projected quarterly cash flows of approximately $1.2 million once stabilisation is achieved. Operational focus now lies on optimizing well performance, supply chain logistics for cryogenic processing and securing offtake agreements for helium purity above 99.995%.
2. ESP Pump Testing Begins at Tanzania Exploration Well
At its ITW-1 exploration well in the southern Rukwa basin of Tanzania, Helium One has commenced electrical submersible pump (ESP) trials to evaluate deeper reservoir sections for enhanced gas flow. The testing program, initiated on January 15, 2026, deploys a 350-horsepower ESP unit capable of 500 barrels per day equivalent fluid handling, with the objective of measuring reservoir deliverability under varying drawdown scenarios. Previous wireline logs indicated porosity zones up to 12% at depths between 2,800 and 3,200 meters; success in this phase could support a follow-up delineation well in 2026 and potentially double the estimated resource base from 30 to 60 bcf (billion cubic feet) of helium.
3. Financial and Strategic Outlook for Investors
Helium One’s capital expenditure plan for 2026 totals $18 million, allocated 60% to US production site optimization and 40% to Tanzanian exploration. The company holds cash reserves of $7.5 million at year-end 2025, following a $10 million equity raise in late 2024. Management forecasts break-even cash flow from the US project by Q3 2026 and anticipates an internal rate of return (IRR) of 22% on its combined project portfolio over a five-year horizon. Investors are watching offtake negotiations with industrial gas distributors in North America and emerging partnerships in East Africa as key value drivers for the share thesis.