Blue Star will soon have a better understanding of its Galactica/Pegasus helium prospects as it progresses its exploratory water well program in Colorado
The company has good reason to be excited given that a previous water well that it funded confirmed a significant gas column (134ft) with a 8.8% helium concentration – similar to that found in the nearby Model Dome helium field.
While these wells cannot be completed as helium producers, they can nonetheless point the way forward for Blue Star Helium (ASX:BNL) and provide valuable data ahead of helium production wells.
The company has completed the first well in its latest campaign with laboratory analysis of the encountered gas now underway while the second well has been drilled and cased above the target Lyons formation with further drilling to be carried out later this week.
Drilling of the third exploratory water well will begin once the second is completed.
Separately, a rancher with a relatively deep existing water well nearby has allowed Blue Star Helium (ASX:BNL) to run a suite of wireline logs, providing the company with valuable stratigraphic and depth information to better define Lyons formation prospects in the Galactica and Pegasus area.
Helium exploration wells
Blue Star is in the process of securing a workover rig for its Enterprise 16#1 well after the completion and testing program was approved by the Colorado Oil and Gas Conservation Commission.
It also expects to spud the Sammons 315310C (Blue Star 50%) at the Serenity prospect this quarter and is advancing permitting for another eight wells to be drilled this year.
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.