Blue Star’s newest exploration well at its Galactica/Pegasus prospect in Colorado has trumped its previous wells by flowing gas containing 6.5% helium to surface.

Notably, the flow of gas from the JXSN#4 exploration well, which was drilled to a total depth of 1,043ft (317.9m), has more than double the helium content (3.14%) of the gas column intersected in JXSN#2.

The well intersected the Upper Lyons sand at a measured depth of 230m and appears to be gas filled down to the base of the sand at 261m while the gas charged Lower Lyons sands was encountered at 273m and appears to extend to the total depth of the well.

Both sands flowed gas to surface and Blue Star Helium (ASX:BNL) expects wireline logs expected at the end of this week to determine if any gas-water contacts were encountered in the well.

“Our exploration program at Galactica/Pegasus prospect continues to deliver. We are delighted to have returned high-concentration helium from a fourth consecutive exploration well in this area,” managing director Trent Spry said.

“The result reconfirms Galactica/Pegasus as one of our high-priority development areas in Las Animas. This dynamic is reflected in our current development well scheduling activities for this field.

“The results of this well will be integrated into current resource update process for Galactica/Pegasus which is expected to culminate in the declaration of contingent resources for this field.”

As it is only being drilled to obtain data, the step-out JXSN#4 well will not be completed for gas production.

Development ready

The same restriction will not apply to the string of development wells the company is planning to drill at the Galactica/Pegasus area.

Approvals have already been received for four wells with another seven in process and a further eight to be submitted.

Blue Star recently defined a best estimate 643 million standard cubic foot unrisked contingent resource for its Voyager project.




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.