Drilling is now underway at Blue Star’s Serenity Area of Mutual Interest following the spudding of the maiden Sammons 315310C helium exploration well.

The well in Colorado’s Las Animas County is expected to take about 10 days to reach its planned total depth of about 1,400ft (426.72m) and a further seven days for evaluation and testing.

Sammons 315310C is Blue Star Helium’s (ASX:BNL) first well targeting the Serenity prospect and will test the target Lyons formation.

The company expects the Lyons formation at the well location to be structurally similar to its recent discovery wells drilled at Galactica and Pegasus to the north.

Gas samples taken during testing will be sent for laboratory analysis with results expected to be returned within approximately two weeks of arrival.

Just the first step

Blue Star and its partners at the Serenity AMI have already lined up three follow-up appraisal and development locations for drilling, with final permits to drill will be submitted upon success at Sammons 315310C.

Budgeted dry-hole costs for drilling of the Sammons well remain in the order of US$150,000 net to Blue Star (50%).

The Serenity AMI contains the historical State #3053-36-4 well where wireline log interpretation by the company highlighted the presence of gas in both the upper and lower Lyons formation.

The part of the Serenity prospect being tested by the Sammons 315310C well is interpreted to be up-dip and fault separated from the State #3053-36-4 well where gas has been interpreted.

Success at Serenity is expected to significantly increase the company’s helium resource base.

 

 

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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