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Https://www.townsvillebulletin.com.au/business/stockhead/break-it-down-blue-star-begins-breakthrough-helium-production/news-story/379595ccca7b2e6433f68e316ae2332b

Lorna Blaisse, Chief Executive Officer, Commented:

"Achieving first gas at Galactica is a major milestone for Helium One and a testament to the hard work of our teams and partners. We expect first helium sales in January 2026 and are advancing additional tie‑ins and infill drilling to increase production capacity through H1 2026.

The commercial approach will begin with short‑term offtake to support early sales, moving to longer‑term partnerships as volumes build. We remain focused on disciplined execution as we scale, and we look forward to updating shareholders as we progress.

I wish to extend our recognition and appreciation to Blue Star for delivering this landmark achievement."

Highlights

· Start-up and commissioning of the Pinon Canyon processing facility completed with helium gas now being successfully processed

· Offtake agreements expected to occur in two phases: short term contracts to generate sales in January 2026, followed by longer term partnership agreements to secure sustained revenue stream

· Forward plan expects to see revenue growth during H1 2026 through additional well tie-ins and infill drilling

· Full plant capacity will be maintained via infill and expansion drilling with life of project expected to exceed 12 years

Https://www.londonstockexchange.com/news-article/HE1/successful-first-gas-at-galactica-helium-plant/17383639

🙌🍾

Right peeps, I am off for Christmas Lunch, toodle pip and GLA genuine HE1 investors...we have a great weekend of celebration ahead of a great news week before Christmas break 📈🧑‍🎄🥂

@Blubay

If 2026 ends with "Net Zero" cash because of reinvestment, it is a win for three reasons...

Asset Growth = You’ve doubled the size of your business.

Collateral = You now have the power to borrow money for Tanzania without diluting shareholders.

The Proof = You’ve proven to the market that the 9.3 billion shares are backed by a real, growing cash-machine...

The share price follows the "Earning Power," not the "Bank Balance." If the market sees the potential for £10M/year in profit once the drilling stops, they will price the stock at that level long before the drilling actually ends...

Because of the high profit margins on helium and the specific "Farm-in" deal structure, the company's financial health actually strengthens even while they are reinvesting every penny...

Even if you spend $2 million on drilling, that money doesn't disappear from your "earnings." In the oil/gas industry, a new well is considered an Asset...

On the 2026 year-end report, HE1 could show a £5M–£7M Net Profit, even if their bank account is low because they spent that cash on new wells...

We Investors value the company based on the Profit, not just the cash in the bank. If HE1 shows they can generate £7M in profit, the market will apply a P/E multiple (like 10x)...

Even if they have $0 in the bank on Dec 31 2026, they now own 13 producing wells instead of 7. They have doubled their "income capacity" in 12 months. The market sees this as a massive success, not a "breakeven"...

@Broomtree try harder....

They are not purchasing the plant now Pete, they are leasing it. That means monthly payments, not one big outlay. I have explained that in my previous posts today....

The leasing of the plant didn't just "save" money; it allowed the company to cancel the remaining debt obligations (CLN) because they no longer needed the massive upfront capital.

Colorado is the "Working Capital Engine." Comparing the ROCE of Colorado in isolation is like judging a car based on the cost of the starter motor. The starter motor (Colorado) exists only to turn over the engine (Tanzania).

I fear you’re missing the point... Colorado is now a debt-free cash machine that covers the company's overhead. This means the 5.5% Helium in Tanzania (which is the real prize) can now be developed using Colorado's cash and collateral, instead of diluting us further. The £4.5m raise didn't fund a project; it funded our independence from lenders.

The confusion regarding the £4.5m raise is solved by the October 13th RNS. That money wasn't 'lost' to Colorado cost overruns; £2.38m of it was used specifically to repay and terminate the predatory CLN debt agreement early. Management used the capital 'saved' by the plant leasing decision to buy the company’s freedom from 'death spiral' lenders.

Colorado isn't just an isolated investment... it is a debt-free, self-funding engine designed to cover corporate overheads and provide the collateral needed to develop the 5.5% helium prize in Tanzania without further diluting shareholders. We aren't just building a well...we are building a company that no longer needs to ask the market for money...

Missing from your assessment Blubay is the the "Equilibration Effect".

When State-16 was first drilled, it showed 1.65% – 1.9% helium.

After the well sat for a few months and the reservoir "equilibrated" (natural gases settled and air contamination from drilling cleared), the concentration jumped to 2.17%.

This was a 20-30% increase just from letting the well rest.

Management explicitly stated in a March 2025 RNS: "This increase in helium content could be expected from all historic wells."

You call Jackson-29 an "outlier." In geology, a single high-grade well isn't an outlier; it's a "Sweet Spot" indicator.

The Galactica-Pegasus field isn't a uniform pool, it’s a massive structure where helium concentrations have historically ranged from 2.0% to 6.1% in exploration wells (JXSN-1 to 4).

By calling 3.3% an "outlier" Blubay you ignore the fact that the entire northern part of the acreage (where more wells will be drilled) has consistently shown higher grades than the southern wells like Jackson-4 (which was expected to be lower at 1.18%).

Even if we accept Blubays' "pessimistic" 1.71% average:

At 1.71% He, the project still produces roughly 23,000 Mcf of helium per year at full capacity.

At $450/Mcf, that is $10.3 million USD in gross helium revenue.

Add the 75% CO₂ sales, and the total gross revenue still sits around $13M–$14M.

Even if I ignore Blubay's "bad" numbers, the project still generates a significant multi-million dollar profit for HE1. It might take 18 months to fund Tanzania instead of 12, but it still removes the need for dilution.

"Strange maths". I assume you are only looking only at the Phase 1 baseline ($2M/year).

Your logic presumably being ..."If Phase 1 makes $2M, and the company has 9 billion shares, $2M is "nothing."

You fail to recognise that the project is modular. The current plant has a capacity of 4.2 MMcfd.

The first 7 wells will only fill a fraction of that capacity. You have not recognised the "Snowball Effect " that is simply the fact of what happens when you fill the plant to 100% capacity using the 16 wells that are already officially part of the development plan (RNS Aug 2024).

If Helium One can use the Colorado cash flow as collateral for a loan, they can borrow $20M–$30M from a bank to build the Tanzania plant...

In the July 18, 2025 RNS, the company stated they were raising funds specifically to accelerate both projects toward "cash flow." Once a company has cash flow, they don't need to ask shareholders for "Working Capital"...

Management repeats the $2M because it’s "safe." Investors buy for the $8M because that’s where the "excess income" for Tanzania comes from.

The $2m is the "Safe, Proven Minimum" from the first few wells. This was first published in the August 27, 2024 RNS.

That $2M figure only accounted for helium sales from the initial wells at 2%. It explicitly excluded CO₂ and the 9 expansion wells...

If 6–7 wells make $2M, then 15–16 wells logically move that figure toward the $5M–$8M range as the plant reaches its full 4.2 MMcfd capacity.

The 3.3% Helium concentration (mentioned in the BNL presentation October 2025) and then the confirmed discovery wells in the region flowed actually up to 6%, with an average of 3% and specific local wells like State-16 hitting 3.3% has not been factored into figures mentioned prior to November 2025.

@CrustPete,

I think you have failed to realise the impact of pivoting from an ownership model (pre CLN) to the leasing model adopted in October 2025...

A well flowing 350 Mcf/day at 2.5% helium produces 8.75 Mcf of pure helium. At a $400 profit margin, that's $3,500 profit per day (HE1 share: $1,750).

Cost of New Well: ~$450,000 (HE1 share: $225,000).

The "Payback" Time: $225,000 ÷ $1,750 = ~128 Days.

It takes about 4 months of production from one well to pay for the drilling of the next one...

Once the wells are producing, they are no longer covered by the initial "farm-in" drilling fee (which HE1 paid upfront).

Instead there will be

Costs for labor, electricity to run pumps, site security, and stormwater management are shared equally.

Maintenance: If a well requires repairs to the pipe or cleaning out blockages. HE1 pays 50% of the bill.

As the operator, Blue Star manages the day-to-day work, but they bill HE1 for their half of the expenses monthly.

**For the Galactica project, the estimated operating cost (OPEX) is roughly US$91 per Mcf of pure helium product.**

put that with the current mid price of $450 - $550 there is an 80% profit margin circa $350 - $450 per Mcf...

The equipment lease with Kinder Morgan covers only the processing plant, specifically the amine unit and helium recovery unit...

Each new well costs money upfront; roughly $450,000 / £335,000 per well...

But at this point we have a free ride, Under the current farm-in agreement, HE1 already paid for the first 6 wells as part of our entry fee. Those 6 wells, plus the original State-16 well, are the ones being turned on this week...

You are right that the "peak" numbers require 16 wells, but "excess income" aka Free Cash Flow is expected much earlier because of the low-cost shallow drilling in Colorado compared to the high value of Helium...

At 2.5% helium, these 7 wells are expected to generate more than enough cash to pay for the monthly plant lease AND the next well...

Because these wells are shallow and cheap ($450k each), one month of full helium production can roughly pay for one new well. This means by Q2 2026, the project should be "throwing off" surplus cash even while the 16-well program continues.

Currently, the CO₂ is a waste product is being vented. In mid-2026, the liquefaction equipment arrives. This turns a "cost" (venting/processing) into a "revenue" stream. This is when the project moves from "self-funding" to "high margin," and that is when the "excess income" becomes significant enough to fund Tanzania...

@CrustyPete

In a traditional model you'd be 100% correct, all cash would be recycled. However, HE1 and BNL have made two strategic shifts to ensure they "throw off" cash earlier...

The Leasing decision, instead of spending $10M–$15M upfront to buy the Pinon Canyon Plant, they are leasing the equipment...

So instead of needing to pay back a massive construction debt before showing a profit, they pay a monthly fee. This allows the very first tanker of helium to contribute to Free Cash Flow immediately.

The company stated in late 2025 that the sale of helium from the initial 7 wells is expected to be enough to fund the remaining wells.

For example; If 7 wells generate £6M in profit and 9 more wells cost £4M to drill, the company still has £2M in "Excess Income" while simultaneously growing.

To reach a market cap of £60m – £80m (implied share price of 0.55p – 0.65p) based strictly on Colorado's cash flow, I expect Galactica to demonstrate that it can generate a "clean" annual profit (EBITDA) of roughly £6m – £8m.

At He 2.5% concentration, we will produce roughly 32,000–35,000 Mcf of pure helium per year.

At a conservative $450/Mcf, the helium alone brings in $15m USD.

High-purity CO₂ sales (starting H1 2026) could add an extra $3m–$5m USD

If the plant runs at full capacity, HE1’s share of the profit (after lease costs and royalties) would likely be in the £5m–£7m range. This justifies a £60m–£70m market cap at a standard 10x multiple.

A junior producer that has successfully transitioned from "speculative explorer" to "cash-flow positive producer" is typically valued at a Price-to-Earnings (P/E) or Price-to-Cash-Flow (P/CF) ratio of 8x to 12x.

Volume = Increasing High conviction building ahead of news.

Price Action = Sideways/Basing Accumulation phase (the "quiet before the storm").

RNS Expectation = Extremely High The market expects the "First Gas" RNS within the next 8 working days.

The "Near Future" (Next 3–6 months) carries a Medium-to-Low risk of dilution for two reasons:

Fresh Cash, we have successfully raised £8.1 million in net proceeds in the second half of 2025. This cash is specifically earmarked for the Tanzania ESP test and the final Colorado startup costs.

Revenue Offset,Once Galactica starts selling gas (expected Jan 2026), the company will finally have operating cash flow. While this might not pay for the whole Tanzania plant, it covers daily "keep-the-lights-on" costs, reducing the need to ask shareholders for money just to survive.

If the market re-values HE1 simply as a producer (using a standard Price-to-Earnings or Price-to-Cashflow multiple), the maths suggests a floor of 0.55p – 0.65p just based on the Colorado cash flow.

The we can expect a wave of updated "Buy" notes from city analysts within 48 hours of the RNS. This often brings in a second wave of Investors that waited for proof before buying.

First Gas (Commissioning) Dec 2025

First Helium Sales Jan 2026 2 – 4 Weeks

First CO₂ Sales H1 2026 3 – 5 Months

Cash in Bank (First Revenue) Feb – Mar 2026 8 – 12 Weeks

Now,First Gas at Galactica. This proves HE1 can actually operate a plant. Expect the share price to move toward 0.5p - 0.7p.

Q1/Q2 2026: Results from the Electrical Submersible Pump (ESP) testing at Itumbula (Tanzania). If they can prove sustained high-flow rates at 5.5% helium, the market cap could re-rate toward £200M+ level.

The 3p Moment: This happens when the market is convinced that Tanzania will be built. If they announce a "Final Investment Decision" (FID) for a large-scale plant in Tanzania, that is when the 2.9p – 3.3p analyst targets become a reality.

All to play for here especially for a 7-8 bagger in 2026...