Blue Star’s water well drill program in Colorado is returning some excellent results with the intersection of significant gas at the second hole.

Neutron and density wireline logs showed that the Hill-2 water well intersected at least 26 feet of gas effect at the top of the Lyons formation, with a free water level interpreted in the well at the base of the gas effect.

While Blue Star Helium (ASX:BNL) is unable to test the composition of the gas in the water well configuration, it is still highly encouraged by the outcome and may expand the program.

Importantly, Hill-2 is located approximately 1.5 miles north-east and down-dip of Blue Star’s planned Enterprise 16-1 helium exploration well.

Blue Star’s Managing Director, Trent Spry, said “This is an excellent result.  The water well program has identified free gas in the Lyons formation which gives us great confidence heading into the Enterprise 16-1 drilling later this year.”

Drilling of the third well, which is located close to the company’s Voyager prospect, is expected to begin in November.

Water well drilling

Blue Star had previously agreed to fund the drilling of the three water wells on land owned by local ranch owners in exchange for gathering data that might aid in the further definition of its helium prospects.

While drilling of the first well remains incomplete due to delays in the delivery of required equipment, the initial data supports the company’s stratigraphic interpretation of the area around its Galileo prospect.

In the second well, resistivity logs across the gas affected part of the Lyons formation suggest a transition zone above the free water level.

This is important for the company as historical offset wells, including a well interpreted to be within the Model Dome field boundary that was reported to be blowing low pressure gas after abandonment, have shown similar low resistivity responses on logs.

Blue Star noted that the Lyons formation in this area is proven by historical helium production from Model Dome, which had an average helium content of 8% in the Lyons formation.



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.