RE: Revenue Generation from the Galactica-Pegasus Helium Project19 Feb 2025 23:12
BluBay- Having revisited 5085’s post, here’s my revised view in what 5085 posted:
The production estimates provided refer to total gas output rather than helium alone, with the reported helium concentration at 1.9%. This means that while a well like State-16 is expected to produce between 250,000 to 350,000 standard cubic feet of gas per day, the actual helium extracted would be around 4,750 to 6,650 cubic feet per day. If production scales to over 1 million cubic feet of gas per day across multiple wells, helium output could reach approximately 19,000 cubic feet per day.
While these numbers may seem modest at first glance, helium’s high market value changes the equation. At an estimated $400 per thousand cubic feet, even the lower-end production figures could generate a solid revenue stream, with larger-scale operations becoming increasingly lucrative. Additionally, the presence of co-produced gases like CO₂, if managed efficiently, could provide further revenue opportunities. With drilling underway and expansion plans in place, the potential for sustained and profitable helium production is becoming more tangible.