• BNL elects to upgrade its development well design
  • Initial drilling at Voyager expected in October
  • Helium recovery unit remains on schedule for delivery in Q4 CY2023

 

In line with engineering advice, Blue Star Helium has upgraded the design of the Voyager development wells to include a larger bore, which is expected to deliver enhanced production outcomes.

A structurally undersupplied market has led to a surge in pricing for helium, essential for key existing and future technology development.

Great timing for BNL, which is set to become one of the first ASX-listed primary helium producers from its helium discoveries — Voyager, Galactica & Pegasus — in Colorado.

It is targeting first helium output in Q4 2023 from its high-grade Voyager discovery (643 MMcf contingent helium resource, to be followed by Galactica and Pegasus in 2024.

So far, Blue Star (ASX:BNL) has two approved wells for production with further four locations awaiting approval with the Colorado Oil and Gas Conversion Commission (COGCC).

The initial development wells will be selected from these six for tie in to the IACX facility.

The team has been working closely with experienced US midstream provider, IACX Energy, on site requirements and ancillary component acquisitions after the two parties executed a Master of Services Agreement (MSA) at the end of June.

IACX will provide helium recovery services through delivery and operation of a pressure swing adsorption (PSA) helium recovery plant at the high-grade Voyager project.

 

Rig mobilisation set for October

The decision to upgrade to a larger bore follows learnings adopted by nearby drilling activity on the site adjacent to Blue Star’s Galactica and Pegasus discoveries.

As a result, Blue Star now expects rig mobilisation and commencement of development well drilling at Voyager during October.

The drilling delay has no impact on the scheduled delivery of the helium recovery unit.

IACX Energy has confirmed delivery of the leased and operated Voyager helium recovery unit remains on schedule for Q4 CY2023.

Plant permitting and long lead items are also progressing in-line with the scheduled delivery of the IACX plant.

Product sales are expected to commence promptly after first production.

 

 

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.

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