Blue Star’s helium push is continuing with approval hearings for four development well locations at its Galactica/Pegasus prospects in Colorado due mid this week.

It comes as its Serenity AMI partner Vecta Oil & Gas prepares to drill into the lower Lyons sand at the Sammons 315310C well after carrying out additional cementing operations to ensuring that the anticipated gas filled lower Lyons sand can be safely tested in isolation for accurate pressure, flow and compositional analysis.

The Galactica/Pegasus development wells are located to offset the helium discoveries at JXSN#1 and JXSN#2, which returned concentrations of up to 3.14% helium.

And if that wasn’t enough for Blue Star Helium (ASX:BNL), the JXSN wells also confirmed the company’s gas on log interpretations at the historical Denton B #1 and Colorado #B-1 wells, extending and proving gas over a large structural area predominantly leased by the company.

Drilling of these wells will be scheduled as part of the plan of development for the Galactica/Pegasus area, which could include an early well for additional pressure and flow analysis.

The remaining three wells will in turn be completed closer to the commissioning of the processing facility, limiting the time between drilling and exposing the helium reservoir and shutting the well in prior to tie-in to the production facility.

The company has a further seven development wells in process with the Colorado Oil and Gas Conservation Commission (COGCC) to extend the development since exploration wells proved gas over a large structural area and an additional eight wells soon to be submitted to develop the gas discovery by the JXSN#3 well.

Serenity drilling

Meanwhile, Vecta (25%) has set the casing in the Sammons 315310C well at a depth of 1,270 feet in the shale that separates the upper and lower Lyons sands.

This allows the upper Lyons to be preserved for future completion after showing high and increasing flow rates during testing whilst allowing the lower Lyons to be tested in isolation.

Blue Star, which has a 50% interest in the Serenity Area of Mutual Interest, noted that the plan is to run the cement bond log to confirm sufficient cement coverage before drilling into the Lyons sand.

Once in the lower Lyons, the JV intends to drill the first 20 feet of the sand for initial flow testing of the well for pressure and rate analysis and to collect gas samples to determine composition.

Sammons 315310C well is one of four approved helium wells located in the AMI, which also includes Prospero Oil and Gas (25% interest).




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.