Blue Star set to spud Serenity helium exploration well

Blue Star via Operator Vecta has contracted a rig to drill the maiden Sammons 315310C helium exploration well at its Serenity prospect in Colorado.

The well is expected to spud in the week commencing 27 June 2022 and is the first of four approved wells locations to be drilled in the Serenity Area of Mutual Interest.

Sammons 315310C well will target the Lyons Formation and will be drilled updip of a historical well that intersected gas (interpreted on logs) in both the upper and lower Lyons formation.

It is also located immediately south of Blue Star Helium’s (ASX:BNL) recently announced discoveries at the Galactica and Pegasus projects.

Budgeted dry-hole costs for drilling of the Sammons well remain in the order of US$150,000 net to the company, which has a 50% non-operated interest.

Helium drilling

The top Lyons formation at the Sammons 315310C well location is expected to be similar to recent wells drilled at Galactica and Pegasus to the north.

Drilling will be completed in the gas-bearing Lyons reservoir to maximise production upon success.

Serenity has the potential to significantly increase the company’s resource base as it is not currently included in its current P50 net unrisked prospective helium resource of 13.4 billion cubic feet of gas within the Las Animas area.

Upon success and integration of the well data into Blue Star’s geologic model, Sproule will be engaged to prepare the first independent resource assessment for the Serenity prospect.

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.