Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has received final approval to drill the first two helium development wells at its high-grade Voyager helium development in Las Animas County in Colorado.
These two wells offset the BBB#1 helium discovery and are intended to produce in the initial Voyager facility.
Blue Star will kick off drilling the first of these wells late this quarter or the next quarter and will include subsequent flow and pressure testing evaluation as well.
In addition, commercial discussions for the provision of a leased helium facility at Voyager are advancing and expected to conclude in the execution of a facilities agreement in the coming weeks.
Furthermore, the company is on track for the first helium production and sales from Voyager during the second half of this year.
Additional approvals
Following the acquisition of strategic mineral leases and surface access agreements, the next planned oil and gas development plan (OGDP) submission at Voyager has been expanded to five wells and is planned to be submitted in the first week of May after the expiry of mandatory presubmission notices to the county.
Additional five-well OGDP for Voyager is to be submitted to COGCC in the first week of May, together with the BBB 33#1 and 34#1 locations.
This will deliver robust inventory from which the initial 3-4 production well locations at Voyager will be selected.
Commercial discussions
Blue Star is progressing negotiations with a mid-stream company for the lease of a helium processing facility at Voyager.
These discussions are now highly advanced and expected to conclude in the execution of a facilities agreement in the coming weeks for the supply and operation of the helium processing plant.
Accordingly, given the COGCC’s revised permitting guidance, Blue Star is continuing to target the first helium production and sales from Voyager during the second half of this year.