Blue Star has plenty of helium well locations with which to develop Galactica/Pegasus

While Blue Star is undoubtedly focused on its upcoming development and drill plans at the Voyager project, it certainly hasn’t forgotten about the rest of its helium acreage in Colorado.

The company has now added three wells to its drill inventory after the Colorado Oil and Gas Conservation Commission (COGCC) approved its Oil and Gas Development Plan (OGDP) for the Galactica/Pegasus project.

All three wells – Jackson #01, Jackson #02 and Jackson #03 – are planned to be drilled as offset development wells to the JXSN#1 and JXSN#2 helium discoveries and will be completed as producers.

Blue Star Helium (ASX:BNL) adds that the commencement of helium production and sales from the neighbouring third-party Red Rock project demonstrates the viability of the Galactica discovery and validates its chosen midstream development pathway for Voyager.

The company added that on final approval of the OGDP, its Galactica/Pegasus drilling inventory will consist of seven permitted helium development wells, four development wells awaiting COGCC approval and 20 well locations identified for permitting.

Development planning is well advanced with a range of commercialisation pathways under consideration, including an initial leased plant and third party operated option with expansion expected to include a potential CO2 by-product stream.

“While our maiden Voyager development is the focus for our operations team targeting Q4 first helium, work continues in parallel on the exciting Galactica/Pegasus project where the company had four successful discoveries over the two prospects in 2022 and moved into development planning,” managing director Trent Spry said.

“Galactica/Pegasus is a larger scale project, and we are pleased that three more well locations have been approved.”

Successful exploration drilling

Blue Star’s growing inventory of development well locations is hardly surprising given the success of its exploration program over the Galactica and Pegasus prospects during 2022.

All four exploration wells – JXSN#1 to JXSN#4 – were successful, intersecting gas bearing columns of up to 230 feet, helium content up to 6% and flow rates as high as 412,000 cubic feet per day.

Accordingly, Galactica/Pegasus development is a larger-scale with multiple product streams compared to Voyager.

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.