Colorado Helium Wells Face Permitting Delays
Joint venture partners in Colorado's helium sector should expect permitting timelines to shift planned drilling by months.
Updated on Nov. 2, 2026 in Oil and Gas
Helium One Global Ltd reported A$460,000 in quarterly helium sales receipts from its 50% stake in the Galactica-Pegasus project in Colorado, which is operated by Blue Star Helium. Three additional planned production wells have been delayed by permitting, and drilling is now expected to begin in March.
Why it matters
For operators in the helium and gas production space, the delay shows how permitting timelines can push back production schedules even when equipment and partners are in place. The reported receipts cover the whole joint venture, so Helium One's share will be forwarded under the joint operating agreement rather than booked as a standalone sales line.
Helium One's Galactica-Pegasus joint venture reported A$460,000 in quarterly helium sales receipts, with Helium One holding a 50% stake and six tube trailers delivered to the project. Three additional planned production wells are delayed by permitting, and no prior-quarter comparison was reported.
The players
Helium One Global Ltd
An Australian-listed helium exploration company that holds a 50% stake in the Galactica-Pegasus project in Colorado and is pursuing a farm-out in Tanzania's Rukwa area.
Blue Star Helium
The operator of the Galactica-Pegasus helium project in Colorado, responsible for well development and production at the venture.
The details
Receipts from the Galactica-Pegasus project cover the whole joint venture, and Helium One's share will be forwarded to it under the joint operating agreement. Blue Star Helium, which operates the project, is considering deepening existing wells to increase flow. Regulatory approvals for the three delayed wells are expected in the December 2026 quarter, and production ramp-up at the Pinon Canyon plant is expected to continue into 2027.
Timeline
December 2026 quarter: expected regulatory approvals for the new wells.
March: expected start of drilling for three additional production wells.
2027: production ramp-up at the Pinon Canyon plant expected to continue.
Market Landscape
Helium One's Colorado operation sits alongside its Itumbula discovery in Tanzania, where three shallow stratigraphic wells were completed but not designed for helium testing. The company's dual exploration and production strategy reflects a portfolio approach to helium supply across two regions.
Operators in the gas production sector should factor in that permitting delays can push back planned drilling by months even when equipment is on site. Joint venture partners should expect revenue to flow through joint operating agreements rather than as standalone sales, which affects how receipts are reported and forwarded.
The takeaway
Treat permitting timelines as a schedule risk in any helium or gas drilling plan, and track the December 2026 quarter approval window. Review joint operating agreement terms to confirm how and when partner revenue is forwarded.
What happens next
Expected regulatory approvals for the three delayed wells fall in the December 2026 quarter, and drilling is planned to begin in March.
Further reading
For broader context on regional production economics, browse our Oil and Gas coverage across Colorado.
