Blue Star builds its pool of helium development wells at Galactica/Pegasus

Blue Star now has seven proposed development wells in its Galactica/Pegasus helium project at an advanced stage of permitting to follow on from its recent discoveries.

The Colorado Oil and Gas Conservation Commission (COGCC) has accepted the Galactica-Pegasus OGDP (Oil and Gas Development Plan) II, which covers the proposed Jackson 1, Jackson 2 and Jackson 3 wells, as complete and passed to the final review and hearing phase.

Notably, this process was concluded in just 65 days from submissions – almost twice as quickly as the five OGDPs in Las Animas County that were previously submitted by Blue Star Helium (ASX:BNL) and two other operators.

COGCC has also approved the Forms 2A relating to the State 09, State 16, State 35 and State 36 wells under two OGDPs which were recently approved by the COGCC.

This enables the company to submit the final Form 2s applications to drill in respect of these wells.

All seven wells will be drilled as offset development wells to the successful JXSN#1 and JXSN#2 helium discoveries made earlier this year.

Successful helium exploration

The recent JXSN#4 exploration well flowed gas containing up to 6.5% helium to surface, more than double the helium content (3.14%) of the gas column intersected in JXSN#2.

While the well will not be developed due to its being drilled under the water well exploration program, the result adds to the helium prospectivity of the Galactica/Pegasus project and provides valuable control for the development drilling.

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.