All clear on the horizon for Blue Star’s first helium development wells

Blue Star Helium says final approval from the Colorado Oil and Gas Conservation Commission (COGCC) to drill the first two helium development wells (BBB 33#1 and 34#1) at the high-grade Voyager helium project – part of the Las Animas helium project – are expected this month.

These two wells offset the BBB#1 helium discovery, and are intended to produce into the initial Voyager facility, with the drilling of the first of these wells is expected to commence in late Q2 or Q3 along with subsequent flow and pressure testing.

The next planned Oil and Gas Development Plan (OGDP) submission at Voyager has been expanded to five wells – which are expected to “deliver a robust inventory of permitted wells” from which to select the initial 3-4 production well locations at Voyager.

Blue Star Helium (ASX:BNL) is targeting first helium production and sales from the project during H2 CY2023.

Acquisition of strategic mineral leases and surface access

The company has also acquired further strategic mineral leases in the Voyager area comprising a total of 2987 gross acres (1382 net acres), and has agreed additional highly favourable surface access.

The leases are expected to increase the contingent resource base at the project, with the additional surface access allowing optimisation of the planned siting of the helium processing facility at Voyager and a more efficient gas gathering system layout.

“We are very pleased to have now secured the majority of the Voyager helium resource area with these new crestal leases,” MD and CEO Trent Spry said.

“While infill leasing will continue in the background, these leases are expected to significantly add to our net contingent resource and have allowed inclusion of highly regarded well locations in the upcoming OGDP submission.

“It will also allow for additional crestal locations to be added to the inventory going forward.

“The new surface access allows for optimal placing of the helium facility and a more efficient gathering gas system.”

Blue star ASX BNL — Voyager helium development planned well locations, existing leases shown in blue, newly acquired minerals leases shown in yellow. Map: Supplied (BNL)

First production planned for H2

Notably, Blue Star says negotiations with a mid-stream company for the lease of a helium processing facility at Voyager are now “highly advanced.”

“While in Denver recently we met with the mid-stream company that will provide and operate the initial facility at Voyager with discussions now highly advanced and final document signing expected in the coming weeks,” Spry said.

The COGCC is now implementing a revised permitting process which is designed to shorten the time between submission and hearing to 4.5 months, with the current process taking on average 7 months.

In light of this, Blue Star is continuing to target first helium production and sales from Voyager during H2 CY2023.

This article was developed in collaboration with Blue Star Helium Limited, 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.