Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has received the final approvals from the Colorado Oil and Gas Conservation Commission (COGCC) for drilling of four helium development wells at the Galactica/Pegasus Helium Project in Las Animas County, Colorado.
The four wells are to be drilled as offset development wells to the JXSN#1 and JXSN#2 helium discoveries made earlier this year and are expected to be production wells.
These production wells will be scheduled for drilling along with the currently proposed development wells at Galactica/Pegasus.
Development plan
Sproule is finalising a resource update for Galactica/Pegasus, which is expected to result in the declaration of contingent helium and CO2 resources.
The Galactica/Pegasus development is a larger-scale project with multiple potential product streams.
Further engineering and market work are underway to refine the initially planned development configuration and forecast helium and CO2 production and cost estimates.
There is a range of development pathways under consideration, including a leased plant and a third-party-operated option.
The final development is expected to include a CO2 extraction route and by-product stream. The Galactica/Pegasus facilities are planned to be permitted in parallel with the Voyager development.
Furthermore, a final decision on the initial Galactica/Pegasus plant configuration is expected in this half.