Blue Star Helium has won approval from the Colorado Oil and Gas Conservation Commission (COGCC) to break out its Detectorists at the highly-prospective Sammons Ranch Oil and Gas Development Plan (OGDP). 

The Sammons Ranch OGDP consists of four proposed helium exploration wells located in the Area of Mutual Interest (AMI) agreed between the company (50%), Vecta Oil and Gas, (25%) and Prospero Oil and Gas LLC (25%).

The approval – part of a residual condition agreed to ahead of the AMI – has now been satisfied to the immense delight of all parties.

The AMI also includes Blue Star’s Serenity prospect, located immediately south-east of its Galactica and Pegasus prospects.

Rare and valuable commodity

Demand for helium and its absolutely irreplaceable use is sky high and just keeps growing across an exponential range of high-tech applications – from manufacturing MRI machines to nuclear medicine and space exploration.

But supplies are tight, because the periodic tables’ second lightest, most abundant and utterly mercurial element – almost impossible to find on Earth – typically only exists as a byproduct of a chemical exchange – like in the production of LNG, for example.

That’s why Blue Star Helium (ASX:BNL) is seeking to unlock new sources of the increasingly rare and highly-valuable commodity.

Ready to drill

Drilling of the Sammons 315310C well is expected to begin after the companies receive the approved final permit.

Vecta is expected to submit its final permit to drill (Form 2) in the next few days, with approval expected within 30 days of submission.

 

 

 

This article was developed in collaboration with Blue Star Helium Limited, 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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