Blue Star Helium has drilled the second exploratory water well at its Galactica/Pegasus helium prospects in Las Animas County, Colorado.

Samples of gas encountered while drilling have been sent to the laboratory for analysis with data expected in the coming weeks.

Blue Star Helium (ASX:BNL) expects to kick off drilling of the third exploratory water well on Tuesday (US time), with Blue Star personnel at the well location collecting and evaluating data.

Potential to host helium

The company has good reason to be excited – given that a previous water well confirmed a significant gas column (134ft) with a 8.8% helium concentration – similar to that found in the nearby Model Dome helium field.

While these wells cannot be completed as helium producers, they can nonetheless point the way forward and provide valuable data ahead of helium production wells.

Helium exploration wells

Blue Star is in the process of securing a workover rig for its Enterprise 16#1 well after the completion and testing program was approved by the Colorado Oil and Gas Conservation Commission.

It also expects to spud the Sammons 315310C (Blue Star 50%) at the Serenity prospect this quarter and is advancing permitting for another eight wells to be drilled this year.

 

 

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.

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