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US helium exploration company Blue Star is moving its Galactica-Pegasus project in Colorado toward continuous production and early-stage helium sales as it begins commercial operations.
In a quarterly update, Blue Star said that following installation of automation and monitoring systems, the Pinon Canyon plant will transition to 24/7 operations.
In March, the company began helium sales via , while negotiating long-term contracts with end-buyers.
These sales follow the company reporting its late last year.
The Pinon Canyon project is expected to produce around 32 mmcf/year of helium once fully operational. The plant’s planned full-scale operations come at a time of tightness in the global helium market, with QatarEnergy’s operations offline in the Middle East.
Blue Star said it is already planning its second development phase.
The second stage will focus on increasing helium production across the broader Galactica-Pegasus project area, including optimising existing wells, expanding gathering systems, and permitting additional wells.
The Galactica-Pegasus project has six operational wells and aims to commence carbon dioxide (CO2) liquefaction and trailer loading following the tie-in of Jackson 27.
Blue Star said CO2 liquefaction is targeted for June 2026, subject to offtake agreements, as the company moves toward CO2 commercialisation alongside helium production.
The company has identified around 20 to 30 potential drilling locations in the greater Galactica-Pegasus project area.
Blue Star Helium is also targeting 20 further drilling locations for CO2 discovery at its , located southeast of the Galactica-Pegasus Project in Las Animas County.
