Blue Star’s first helium well strikes massive, thicker structural gas column
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The Blue Star team’s Enterprise 16#1 helium exploration well in Colorado just intersected gas showing a 78 foot (23.8m) structural gas column.
While it’s still early days, helium has been observed during drilling and the gas column is significantly thicker than the 29ft column previously interpreted in the Hill#2 water well
This is thanks to the deeper gas-water contact seen in the Enterprise structure that had a 13ft gas column in the high-quality Lyons formation.
Blue Star Helium (ASX:BNL) noted that while well testing has been delayed due to water inflow into the well bore from below the gas-water contact, it is designing a new testing procedure that will be implemented in the coming weeks.
Managing director Trent Spry said the company was encouraged to have encountered high-quality Lyons reservoir with gas interpreted on logs with its first exploration well and that the increase in the gas column can be applied to the rest of the field as currently mapped.
“Gas monitoring of the well will continue while a testing procedure designed to isolate the water and test the upper part of the Lyons is established,” he added.
“Although frustrating not to have been able to immediately test the well and obtain a raw gas composition, we are targeting to be in a position to test the well in coming weeks.
“Importantly, the well results have already significantly reduced geological uncertainty at Enterprise and confirmed a deeper gas water contact than previously interpreted.”
Spry said the results to date means that the company’s forward planning remains unchanged with permitting of additional well locations being fast tracked and strategic water well locations being identified.
Enterprise 16#1 is the first in a series of 10 wells planned to be permitted and drilled across the Blue Star portfolio this year.
The next well is expected to be Sammons 315310C, which is located within the Blue Star-Vecta Area of Mutual Interest on Blue Star’s Serenity prospect.
Drilling is expected to begin during the second quarter.
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.