Blue Star closing in on helium production with firm Voyager drill plans

Blue Star has pencilled in an August start date for development drilling at its high-grade Voyager project in Colorado that will take it into helium production.

The company will drill the BBB 33#1 and BBB 34#1 helium development wells, which offset the BBB#1 helium discovery well that had intersected a 134ft (40.8m) gas column and flowed gas containing 8.8% helium to surface.

It will also drill an exploration well on the southern side of the interpreted crest designed to test the area of a new submitted Oil and Gas Development Plan (OGDP) application.

Drilling of the development wells includes flow and pressure testing in preparation for Voyager production activities.

Blue Star Helium’s (ASX:BNL) new OGDP application to the Colorado Oil and Gas Conservation Commission (COGCC) covers a further four development wells at Voyager, which along with the first two wells will deliver a robust inventory of permitted wells from which to select the initial two to four production wells.

Helium processing discussions

In line with these development plans, the company noted that discussions with a midstream company for the supply and operation of a helium processing facility at the project are nearing completion and the contract documentation is now in agreed form.

The mid-stream company has also advised that its technical due diligence is substantially complete and, subject to final sign off, it expects to execute the documentation shortly.

Delivering, installation and commissioning of the facility has been confirmed for the fourth quarter of 2023 with Blue Star confirming that it remains on track for first Voyager helium production and sales before the end of this year.

This plant will have the capacity process about 2 million cubic feet of gas (MMcf) per day of raw gas to produce 38MMcf of 98%+ purity helium product gas in its first full capacity year.

Voyager has a best estimate Contingent Resource of 643 million standard cubic feet of helium, at least a portion of which could be converted into reserves following successful drilling and testing of the development wells.

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.