Blue Star Helium brings Galactica development well count to five

• Blue Star Helium completes drilling of the Jackson-2 development well at its Galactica project
• Fifth development well encountered no water and started flowing gas during drilling
• Work underway to prepare the well for surface pressure readings and flow testing

Special Report: Blue Star Helium has added a fifth Galactica development well to its inventory following the successful flow of gas from the Jackson-2 well in Las Animas County, Colorado.

Like all its compatriots drilled to date, the well flowed gas to surface naturally during drilling and after reaching its total depth of 1232ft within the upper sand of the target Lyons Formation.

The Lyons was intersected at 1159ft with Jackson-2 intersecting 73ft of high-quality, gas-saturated reservoir.

Notably, wireline logging confirmed that no water was encountered while drilling through the Lyons, leading Blue Star Helium (ASX:BNL) to say that the entire upper formation and a significant part of the lower Lyons is gas-saturated at this location.

The company has collected and sent gas samples to the laboratory for analysis of helium and carbon dioxide concentrations.

It is also installing the well head before carrying out surface pressure readings, flow testing and further gas sampling.

Strong gas flows

Managing director Trent Spry said that Jackson-2 had already exhibited strong gas flow since reaching total depth – a point in favour of the significant production potential of the Lyons Sandstone.

“This ongoing success reinforces the robustness of our Galactica project and represents a substantial advance toward commercial production.

“Based on the success of the drilling campaign and integration of the data collected to date the decision has been made to drill the sixth well of farm-in agreement with Helium One Global Ltd. at the State 9 location.”

Watch: Blue Star spuds another at Galactica helium

The rig is currently being prepared for mobilisation to drill the State 9 well with construction underway on the drill pad.

Under the farm-in, Helium One will fund the first US$450,000 of drilling State 9.

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.