Blue Star Helium prepares Aloha Mula 12 well for flow testing

• BNL poised to begin flow testing Aloha Mula #12, third of four wells in Lincoln County
• First two wells produced strong results, topping out at 700 Mcfd at 2.01% helium and 2,500 Mcfd at 1.32-1.36%
• Commercial assessment based on testing data will guide development decisions moving forward

Special Report: With supply constraints intensifying and demand for helium increasing, Blue Star Helium is preparing to flow test its third of four wells at its operations in Lincoln County, Colorado, US.

The company has mobilised a workover rig to Aloha Mula #12 well to prepare for flow testing, which will reveal the helium content, production rate and pressure of the well.

Blue Star Helium (ASX:BNL) managing director and CEO Trent Spry said the Great Plains Field testing was progressing at pace, with the workover rig to then move on to the Big Wampum 4 well as the final test site.

“The first two tests (Ma State 16 and Bubba State 3) confirmed robust flow rates with high helium concentrations, indicating solid production potential,” Spry said.

“These strong initial results are encouraging in our evaluation of this potentially transformative asset. Final results from all four well tests will be used to drive commercial decisions going forward.”

BNL said site preparations at the Big Wampum 4 well were nearing completion and the rig would return to the site once Aloha Mula #12 testing was complete, where it would isolate the Keyes formation.

First two wells demonstrate strong helium potential

Blue Star has completed flow testing on the Bubba State 3 and Ma State 16 wells, which both performed well.

Bubba State 3 sustained a constant rate of 740Mcfd for about 12 hours at a pressure of about 1,625 psia and from those numbers, BNL modelled an absolute open hole flow (AOF) of 885 Mcfd, and a stabilised production rate after 30 days of 700Mcfd.

The helium content in Bubba was 2.01%, high for this area and in line with expectations.

As for Ma State 16, the well produced 2.5MMcfd (2500Mcfd) for 12 hours at a pressure of 1,464 psig for a modelled AOF of 33MMcfd at a helium concentration of 1.32-1.36%.

Blue Star reckons there’s potential to unlock further gas resources in both wells, as there are no obvious boundaries within about 500 feet.

Watch: Blue Star Helium shoots for more flow rate success at Galactica gas

The company is reassessing reservoir parameters, production curves, reservoir boundaries and estimations of recoverable gas, which will inform commercial and development decisions.

With semiconductor, healthcare and aerospace applications accounting for the lion’s share of helium demand, supply of the noble gas is expected to tighten over the next few years as traditional sources diminish.

A report by market research firm IDTechEx claims global demand for helium will double by 2035, driven mostly by the semiconductor industry.

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.