Multiple Helium Discoveries at Blue Star’s Galactica and Pegasus Prospects
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Exploratory water wells continue to play an important role in Blue Star’s exploration strategy with helium discovered in multiple wells within the Galactica and Pegasus prospect.
Helium concentrations of up to 3.14% were seen in larger than expected gas columns within the primary target Lyons formation, which has historically produced the ultra-rare gas in the Model Dome field.
Adding further interest, gas flow rates have also been consistent with data reported from Model Dome leading Blue Star Helium (ASX:BNL) to note that independent geological consultant Sproule would upgrade resource estimates with a declaration of at least contingent resources expected.
Investors cheered the discoveries, sending BNL shares up more than 10% this morning to 3.2c.
“Our initial exploratory water well program at our Galactica/Pegasus prospects has been very successful with helium being discovered in each of the three wells drilled,” managing director Trent Spry said.
“The gas columns in each of the wells, including JXSN#3 which is located outside the Galactica P50 prospective resource contour, are larger than expected and show that the Lyons formation is helium bearing across a large part of the Galactica/Pegasus area where Blue Star has a dominant acreage coverage.
“Identifying helium bearing gas reservoirs with 3% helium is a high-concentration result. It is well within the range of helium grades we can expect within the vast Lyons helium play fairway in Las Animas, which spans some 4,000 square miles (2.6 million acres).
“This concentration is also similar to many producing or historically producing US helium accumulations such as Ladder Creek, Concho Dome, Shirley Rother and the Keys field in Hugoton.”
Spry added that the company was keen to sell helium into the market which has seen commentators reporting spot sales at between US$2,000 and US$3,000 per thousand cubic feet.
As part of the Plan of Development for Blue Star’s Las Animas portfolio consulting engineers SIGIT are preparing to start a front-end engineering and design (FEED) study on a processing facility to be located in the Voyager prospect where an earlier exploratory water well had intersected plus 8% helium bearing gas.
Now, after today’s results, SIGIT will also prepare a second FEED for a facility to be located on its Galactica/Pegasus/Serenity prospects.
Additionally, the company has submitted applications to drill four helium wells in the Galactica/Pegasus area to follow-up on the water well discoveries while a further 29 helium wells are in the planning and permitting pipeline over just the Galactica and Pegasus area.
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.