‘Hello Money’ helium well delivers strong flow test results for Blue Star

• BNL reports constrained flow rate of 3,000 Mcfd at Aloha Mula 12 well in Colorado
• Results look promising for helium production, a vital gas for high tech industries
• Results will inform company’s option exercise decision for the Lincoln County project

Special Report: Blue Star Helium has wrapped up flow testing of the Aloha Mula 12 (‘Hello Money’) well, the third of four wells at its operations in Lincoln County, Colorado, US.

The company previously announced its option to acquire a portfolio of helium assets in the county, with the gas vital for high-tech industries like MRI, semiconductor manufacturing, fibre optics and space exploration.

The flow testing recorded strong performance with a constrained flow rate of 3,000 Mcfd maintained at the maximum limit of the surface equipment and negligible pressure drawdown.

The modelled Absolute Open Hole Flow (AOF) of 9,000 Mcfd was in line with previously reported instantaneous test of 15,000 Mcfd, which further indicates strong well performance.

Plus, gas analysis revealed helium concentration of 1.41% (high for this area) in line with projections and offset tests.

“The Aloha Mula 12 well, translated ‘Hello Money’, has tested as the strongest well in the current campaign,” Blue Star Helium’s (ASX:BNL) managing director and CEO Trent Spry said.

“These strong results indicate the capacity for sustained high flow production.”

Advancing production plans

Flow test data is now being integrated into the Lincoln County project development and economic models, and will guide the company’s option exercise decision.

“Test data will be used to establish production profiles and expected ultimate recoveries (EUR) to help [with] assessment and prioritise development and commercial decisions of the overall Lincoln County project,” Spry said.

“Testing is now well underway at Big Wampum 4, the fourth test in the current campaign, which will complete Blue Star’s option over this strategic high value asset.

“This opportunity is an ideal fit with our existing portfolio, offering rich operational synergies and located only 100 miles from our existing Las Animas helium assets.

“We are also experiencing broader industry interest in participating in the project, and we’ve had a number of discussions with other industry participants who have expressed a strong interest in joining us in this exciting opportunity.”

Placement to raise $4.5m

BNL has also received commitments to raise $4.5m via a placement to institutional and sophisticated investors at 0.5c per share to advance construction at its Galactica project – which is set to enter production this year.

Subject to shareholder approval, participants will also receive one free option for every two new shares issued exercisable at 1c and expiring two years from the date of issue.

“The funds will be used to bring our Galactica project into production in the latter part of 2025, a key milestone for the company,” Spry said.

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.