Blue Star Helium Ltd's (ASX:BNL) (OTCMKTS:AZZEF) Enterprise and Galileo 2U (P50) unrisked prospective helium resource in the US has increased by 16% to a total net recoverable helium of 3.5 billion cubic feet (BCF).
The independent helium exploration and production company’s recent leasing will enable it to expand its drilling program to a minimum of three wells and up to five wells to test several prospects in its portfolio, in addition to Enterprise.
It is also finalising prospective resource assessments at Galactica and Pegasus prospects.
"Happy" with increase
Blue Star managing director Joanne Kendrick said: “I am very happy with the 16% increase in our prospective helium resources at Enterprise and Galileo and I am looking forward to soon receiving Sproule’s independent review of our Galactica and Pegasus targets.
“Our preliminary internal assessment ranks the Galactica and Pegasus drilling targets on equal footing with Enterprise, which is very exciting."
To expand maiden drilling
Kendrick said: “The board has decided to expand our maiden drilling campaign following the recent leasing, prospective resources and prospect ranking."
“An expanded drilling campaign will maximise the prospective resources tested in our maiden campaign and deliver clear advantages over the previously planned single well at Enterprise.
“Whilst we await permit approval for Enterprise, our operations team is heading to the field to review several additional drilling locations in preparation for final location selection and well staking for the expanded program.
“The board is extremely pleased with the leasing and prospective resource results to date and is looking forward to testing its prospects with the drill bit.”
Resource assessments
Enterprise and Galileo prospects have been independently assessed at 2U (P50) 3.5 BCF of total net recoverable helium.
The updated assessment of these prospects accounts for material additional leased acreage acquired since the first assessment, as well as a general audit of the calculations by independent global energy consultants Sproule.
Sproule is soon expected to complete its resource assessment of the Galactica and Pegasus prospects.
Blue Star’s preliminary internal analysis has resulted in a similar ranking in the portfolio as Enterprise.
Forward work program
Based on the successful recent leasing over prospects that are highly ranked in the portfolio, the company will expand its maiden drilling campaign to a minimum of three and up to five wells.
Timing of the drilling of each new well is subject to the receipt of drilling permit approvals and surface access agreements.
The company has staked Enterprise and is working closely with the regulator to progress permitting.
Drilling approval
Blue Star will be undertaking an immediate site visit to select the additional drilling locations in preparation for selection and well staking.
Drilling approval for newly selected locations is expected in early 2021.
Further leasing opportunities are progressing to consolidate several prospects across the portfolio, including around Voyager, where a further independent resource review is planned