Blue Star closer to starting Enterprise drilling ‘mission’

Drill testing of Blue Star’s Enterprise helium project could be just around the corner with the permit application expected to be submitted in the coming weeks.

Helium is a high-value commodity that is vital in a number of modern technology applications such as MRI, nuclear medicine, rocketry and space exploration.

While helium is typically a low concentration by-product of natural gas production, Blue Star Helium (ASX:BNL) is targeting high concentration accumulations on its acreage.

And its Enterprise target appears to be the perfect place to do so given that it is located within a fairway proven by the Model Dome helium field, which produced gas with grades of up to 8 per cent helium before it was acquired by the federal government for its strategic reserve.

“I am pleased to advise the company has had numerous positive discussions with the Colorado Oil and Gas Conservation Commission (COGCC) and I am very confident the Enterprise drilling permit will be granted in accordance with the COGCC’s newly implemented rules,” managing director Joanne Kendrick said.

“It is anticipated the company will submit its first permit application at Enterprise in the coming few weeks.”

Blue Star has been actively engaging with the COGCC in pre-vetting several documents that must be submitted to comply with the agency’s newly implemented rules in relation to the broader drilling program in Las Animas County, Colorado, with the company adding that its plans were favourably received by the COGCC.

Galactica and Pegasus

Enterprise is not the only project that Blue Star is looking to drill.

The company is also preparing drilling permit applications for the Galactica and Pegasus projects, which were the subject of a recent resource announcement.

In February, Blue Star pencilled in prospective helium resources of 6.1 billion cubic feet at the Galactica, Pegasus and Argo prospect that is supported by historical well data showing interpreted gas columns in each prospect.

While no flow test or gas samples were taken from these historical wells, the Government Cynthia True-1 well, located on the same greater structural high as Galactica and Pegasus, was tested at a helium concentration of 8.8%.

“I believe these and other future applications will benefit from the current constructive discussions with the COGCC due to their similarities in objective, location and design of the wells,” Kendrick added.

This article was developed in collaboration with Blue Star, 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.