Blue Star’s fourth Galactica development well flows helium and CO2

• Blue Star Helium flows gas at more than 320,000cfd from Jackson-27 well on the eastern flank of Galactica project
• Early analysis of samples returned a helium concentration of 0.41% along with 98.31% carbon dioxide
• Drilling has started on Jackson-2 well, which will also be tied into processing facilities if successful

Special Report: Blue Star Helium’s goal of becoming a producer of the rare and valuable gas has been bolstered by gas flow from Jackson-27 well at its Galactica project in Colorado.

Flow rates at the well, which started flowing naturally during drilling and after reaching total depth, has increased to more than 320,000 cubic feet per day (cfd) while early analysis of samples returned a helium concentration of 0.41% along with 98.31% carbon dioxide.

Based on the well’s current performance, Blue Star Helium (ASX:BNL) projects that Jackson-27 will be capable of producing gas at rates of up to 550,000cfd though it will likely be constrained to between 350,000 and 450,000cfd to optimise production.

“We are pleased to have another strong producer on the eastern flank of the Galactica project area,” managing director Trent Spry said.

“Extending the resource and gaining strong flow potential and reservoir gas composition in this part of the field is key to defining the development going forward for this high-quality helium and CO2 field.”

Jackson-2 spudded

The company has also spudded the Jackson-2 well, the fifth well in its ongoing drilling program.

It has set the shallow conductor section and is installing and testing blow out preventers prior to drilling through the intermediate hole section.

On reaching total depth, it will carry out wireline logging and flow testing with the expectation that it will be ultimately completed and tied into production facilities.

Joint venture partner Helium One Global is funding the first US$450,000 of the cost of drilling Jackson-2.

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

Both gases can be extracted at the company’s planned processing plant in Las Animas county, approval for which was recently received from the Board of County Commissioners.

Drill results

Jackson-27 was drilled to a total depth of 1183 feet within the upper Lyons Formation after encountering the productive formation at a depth of 1123ft.

As expected, no water was encountered during drilling of the Lyons Sandstone with wireline logs confirming the penetrated Lyons sands to be high-quality and gas saturated.

Jackson-27 will be capable of producing gas at rates of up to 550,000cfd though it will likely be constrained to between 350,000 and 450,000cfd to optimise production.

Strong pressure build-up post-testing confirms high permeability and good reservoir communication.

The Galactica field forms part of the broader Galactica/Pegasus development that was discovered by the company in 2022.

Another potential producer

While BNL is enjoying considerable success at Galactica, it is not the only card in its hand.

At the Great Plains Field, over which the company had executed an option agreement to acquire the discovery wells in February 2025, the Bubba State-3 well has flowed gas at a sustained rate of 740,000cfd from the target Keyes formation.

Gas analysis confirms previously tested helium content around 2.01% helium which is high for this area and in line with expectations.

“The Great Plains Field test program continues to yield great results. The Bubba State 3 well has delivered reservoir performance in line with expectations from the Keyes formation,” Spry said.

“The confirmation of high helium concentrations, alongside robust flow rates and production potential, is highly encouraging. These initial results are critical to our evaluation of this potentially transformative asset.

“The workover rig is currently preparing the next well, Big Wampum 4 for testing.”

The option to acquire Great Plains Field includes existing discovery wells with helium gas recoveries, infrastructure, and a processing site as well as access to the Tumbleweed gas gathering system and the Ladder Creek helium processing facility.

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.