Blue Star flows gas from Galactica helium development well

Blue Star gas flow reaches 190,000cfd from Jackson-4 well in its Galactica project in Colorado
Helium and carbon dioxide concentrations of 1.18% and 85.93% respectively are in line with expectations
Drilling underway at the Jackson-29 well

Special Report: Blue Star Helium is confident of adding another helium producer to the Galactica project in Colorado after gas flow at Jackson-4 well increased to 190,000 cubic feet per day since drilling reached total depth.

Strong pressure build-up post-testing indicates high permeability and good reservoir communication and the development well is projected to have a maximum potential flow rate of 450,000cfd and constrained flow rates of between 250,000 and 350,000cfd to optimise production.

Blue Star Helium (ASX:BNL) has also proven that rare helium gas is present with early samples returning concentrations up to 1.18% along with 85.93% carbon dioxide, which is in line with pre-drill expectations.

Jackson-4 is one of the southernmost wells in the project and was expected to have higher levels of CO2 and lower helium than wells to the north and west.

While helium is valued for its irreplaceable use in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines, high-purity CO2 is also used in the food and beverage sector.

“We are pleased with further strong results from this development drilling campaign. Jackson 4 has confirmed helium and CO2 resources at the southern edge of the project and provides further evidence of the Lyons reservoir impressive deliverability,” managing director Trent Spry said.

“The raw gas composition seen in the well is in line with expectations based on the geologic model and adds to confidence in our understanding of the helium and CO2 system working in the area allowing future targeted development wells.”

Helium play

Confirmation that the Lyons reservoir has strong deliverability indicates the company’s Galactica project could be a significant helium producer.

Its earlier Jackson-31 well is expected to produce gas at constrained rates of between 300,000 and 400,000cfd. This was found to have a helium concentration of up to 2.2% after air correction.

Drilling is also underway at the Jackson-29 development well in the middle of the play.

BNL noted on March 31 that blow out preventers were being installed and tested prior to drilling through the intermediate hole section before it intersects the target Lyons formation.

At total depth, wireline logging will be conducted, followed by flow and pressure readings at the wellhead.

This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.