---
title: "Helium One Edges Closer to Commerciality According to Investment Bank"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-08-27T10:00:04+00:00"
modified: "2024-08-27T10:35:44+00:00"
date: 2024-08-27
canonical: "https://stockmark.it/helium-one-edges-closer-to-commerciality-according-to-investment-bank/"
category: "Oil and Gas"
categories: ["Oil and Gas"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/Screenshot_2024-08-27_at_113421.jpg?fit=1200%2C585&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Helium One Edges Closer to Commerciality According to Investment Bank

**Published:** August 27, 2024
**Author:** Stockmark.IT Website
**Categories:** Oil and Gas
**Featured image:** ![Helium One's Rukwa Project: 1,899km² area, 138Bcf P50 unrisked prospective recoverable helium resource. Closer to commerciality. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/Screenshot_2024-08-27_at_113421.jpg?fit=1200%2C585&quality=89&ssl=1)

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Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) is inching closer to achieving ‘commerciality’ as per an investment bank’s assessment, following the company’s latest well test results and a strategic acquisition that is expected to accelerate its journey towards generating revenue.

In a recent note, Panmure Liberum praised Helium One’s $6.75 million acquisition of a 50% working interest in the Galactica Pegasus Helium Project located in Colorado. The investment bank believes this project could commence production by mid-2025.

The acquisition provides Helium One with access to a near-term development opportunity that has the potential to generate maiden revenues in 2025. Moreover, this move diversifies the company’s portfolio beyond Tanzania, effectively de-risking its overall asset base and reducing its reliance on Tanzanian assets.

Panmure Liberum also described the production from the Itumbala-1 well in Tanzania as “very encouraging”. The well flowed at an average rate of 786 barrels per day from the Karoo interval, with a helium content of 5%.

Maintaining its ‘buy’ recommendation, the investment bank announced a rebase of its price target for Helium One from 5.30p to 3.44p. This adjustment accounts for the Colorado acquisition and the issuance of new shares in a £6.4 million fundraising initiative that supports the deal.

Despite the revised valuation, Panmure Liberum’s price target still represents more than double the current share price of 1.46p, which saw a 16% decline on the day of the announcement.

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