Blue Star has spudded its long-awaited Enterprise 16#1 helium exploration well that seeks to unlock new sources of the increasingly rare and highly valuable commodity.

Helium is in high-demand for its irreplaceable use in a growing number of high-tech applications from manufacturing MRI machines to nuclear medicine and space exploration.

However, supplies have become tighter over the years as the second lightest and most abundant element – incidentally very rare on Earth – is typically produced as a byproduct of natural gas production.

Blue Star Helium (ASX:BNL) is seeking to address this imbalance with its helium drilling program in Colorado, which kicked off this week with its maiden well targeting a helium pay zone in the Lyons formation.

The location targeted by Enterprise 16#1 is interpreted to be up-dip of the Hill#2 water well that exhibited 29 feet of gas in the Lyons formation.

Drilling is expected to take six days to reach the planned total depth of about 980 feet while evaluation and testing will take another six days.

Managing director Trent Spry says the spudding of Enterprise 16#1 is a significant milestone for the company, which has worked-up its portfolio of helium prospects from first principles and was the first operator to successfully permit a helium exploration well in Colorado since January 2021.

“We have built an industry-leading helium exploration and development business with a premier holding of prospective lands that we are now looking to rapidly advance,” he added.

“The drilling of Enterprise 16#1 represents just the first in a series of ten wells planned to be permitted and drilled across the portfolio this year.

“The helium market is currently experiencing severe and protracted supply restrictions, particularly in the US, making our 2022 exploration program of critical interest to market participants.”

Evaluation and testing

Once drilling is completed, the company will carry out open hole wireline logging across the Lyons formation before carrying out flow testing.

Gas sampling for compositional analysis will be conducted throughout the well testing program.




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.