Wells, wells and more wells, Starting with Enterprise 16#1

Explorer and hopefully soon to be producer Blue Star Helium is ready to start drilling at its maiden Enterprise 16#1 well after receiving the first approved permit to drill for a helium well in Colorado since changes to the State permitting landscape were enacted.

The company says it’s also the first approved drilling application of any type in Las Animas County since then.

Drilling of Enterprise 16#1 is expected to commence in February, with budgeted dry-hole costs at less than US$300,000.

Sammons well drilling expected in April

Last year Blue Star Helium (ASX:BNL) executed an agreement to jointly develop helium leases in an Area of Mutual Interest (AMI) with private entities, Vecta Oil and Gas Ltd and Prospero Oil and Gas LLC – including the company’s Serenity prospect immediately to the south-east of its Galactica and Pegasus prospects.

Vecta currently has Form 2A applications for four helium exploration well locations within the AMI and the approval hearing for these wells has now been moved to 16 February 2022.

The first of these wells (Sammons 315310C) is expected to commence drilling in April, pending permitting and rig mobilsation.

Drilling and evaluation of this well is expected to cost less than US$150,000, net to Blue Star.

Blue Star Helium — Pic: Blue Star’s Las Animas County lease holdings and prospective well locations.

Blue Star owned permits expected mid-year

The company has submitted new drilling location permit applications for four further helium exploration wells, State 35 and State 36 (Pegasus prospect) and State 9 and State 16 (Galactica prospect), with approvals expected by mid-CY2022.

The company also expects to submit a further five Form 2A well location applications during Q1 CY2022 on the Voyager prospect following up from recent helium bearing gas column results – and expected at quarter end to have an interest in 14 wells that are permitted or under permitting.

Plus, preliminary survey work is underway for an additional 33 potential drilling locations across the portfolio as part of the company’s rolling permitting strategy. Totalling 47 wells in the permitting process.

This article was developed in collaboration with Blue Star Helium Limited, 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.