Blue Star secures approval for four Galactica/Pegasus development wells

Blue Star has added four helium development well locations to its target inventory at its Galactica/Pegasus prospects in Colorado.

This follows the Colorado Oil and Gas Conservation Commission approving two Oil and Gas Development Plans (OGDP) overnight and paves the way for the company to submit final permits for drilling.

Blue Star Helium (ASX:BNL) plans to drill these wells, which were located to offset the helium discoveries at JXSN#1 and JXSN#2, as part of its overall plan of development for the Galactica/Pegasus area.

This work is likely to consist of an early development well for additional pressure and flow analysis while a further three wells will be drilled closer to the commissioning of the planned processing facility.

Major helium push

Galactica/Pegasus represents just one part of the company’s broader helium development operations to capitalise on the growing supply-demand gap for the valuable gas.

Voyager was Blue Star’s first helium discovery, two development wells offsetting the discovery well are already in process with the COGCC with more to be submitted shortly.

The company has outlined plans for 56 wells to date following its multiple helium discoveries.

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.