Blue Star calls in workover rig to confirm promising Enterprise helium find

Blue Star has mobilised a workover rig to its Enterprise 16-1 helium exploration well in Colorado to prepare it for testing operations.

While the well had shown a 78 foot (23.8m) structural gas column within the Enterprise structure, which is greater than the 29ft gas column previously interpreted in the Hill-2 exploratory water well, the company was unable to test it due to water inflow into the well bore.

To address this issue, the workover rig will set up a cement plug from the total depth of 1,250ft up to 1,150ft before running and cementing production casing from 1,150ft up across the Lyons formation.

Blue Star Helium (ASX:BNL) will then perforate the top of the gas zone in the Lyons formation from 1,045 to 1,051 feet. Swabbing operations will then be undertaken to remove the invaded fluid from the well bore.

Gas samples taken from the Lyons formation will then be sent for laboratory analysis.

This is expected to take about 12 days to complete.

Helium potential

Enterprise 16-1 was the first in a series of wells planned to be permitted and drilled across the Blue Star portfolio this year to confirm unrisked prospective helium resource of 13.4 billion cubic feet.

Some helium was seen during drilling though plans to test the well were scuttled by the water invasion.

Data from the drilling and logging at Enterprise has been integrated into the geological model and prospect mapping.

This new information as well as the gas seen on logs in the Hill#2 well 2km east on the Enterprise structure has resulted in greater certainty of the closure at Enterprise which will be followed up with future 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.