Blue Star’s Galactica prospect is looking like a big helium treat

Blue Star Helium’s exploratory water well program has proven its worth again with the JXSN#3 well intersecting a larger than expected gas column with a helium concentration of 2.14%.

Importantly, the well is located outside the P50 prospective resource contour at Galactica, which confirms expectations that the prospect represents a significant structural closure on the great structural high.

It also achieved flow rates that are consistent with data reported from the historical Model Dome helium field.

Investors were certainly pleased with this morning’s news, with Blue Star trading up almost 14% to 3.3 cents, on the back of more than 19 million shares changing hands.

Previous exploratory water wells drilled by Blue Star Helium (ASX:BNL) had also proved their value with the first well confirming a significant gas column (134ft) with a 8.8% helium concentration – similar to that found in Model Dome.

“We are happy to confirm high helium concentrations from the JXSN#3 well to round out an exceptionally successful initial exploratory water well program at our Galactica/Pegasus prospects which saw high helium concentrations being discovered in each of the three wells drilled,” managing director Trent Spry said.

“The gas column in JXSN#3 is located outside the Galactica P50 prospective resource contour and is larger than expected.

“JXSN#3 is located approximately 6.4 miles southeast of the Denton B#1 well, where Blue Star had previously interpreted gas to be present on historic logs.

“These two wells show that the Lyons formation is helium bearing across a large part of the Galactica structure where Blue Star has a dominant/extensive acreage coverage.”

Helium sales of up to US$600 per thousand cubic feet have been reported by a number of commentators while anecdotal spot helium sales of between US$2,000 and US$3,000 per thousand cubic feet have been noted.

Development plans

“Our consulting engineers, SIGIT, are preparing a plan of development for our Las Animas prospects. Following the discoveries at Galactica and Pegasus, they will now also commence an additional FEED study on a processing facility to be located in the Galactica/Pegasus/Serenity area,” Spry added.

“This is in addition to the FEED study we announced previously for a facility to be located at Voyager, which is similar to the Model Dome field that produced in the 1930s and lies 6 miles to the southeast.

“Helium bearing gas (~8% He) was discovered at the BBB#1 well during our first exploratory water well campaign last year, triggering the plan of development and FEED study at Voyager.”

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.