Blue Star Helium Ltd (ASX:BNL) (OTCMKTS:AZZEF) is ‘very confident’ of being granted an enterprise drilling permit for a planned drilling program at targeted helium prospects in Las Animas County, Colorado.
The company has been actively engaging with the Colorado Oil and Gas Conservation Commission (COGCC) in pre-vetting several documents that must be submitted to comply with the COGCC’s newly implemented rules.
Blue Star recently presented by video conference to key decision-makers within the COGCC in connection with its broader drilling program in Las Animas County.
The company's board of directors believes Blue Star’s plans were favourably received and the COGCC raised no specific issues.
Submit first permit application in coming weeks
Blue Star managing director Joanne Kendrick said: “I am pleased to advise the company has had numerous positive discussions with the Colorado Oil and Gas Conservation Commission (COGCC) and I am very confident the enterprise drilling permit will be granted in accordance with the COGCC’s newly implemented rules.
“It is anticipated the company will submit its first permit application at Enterprise in the coming few weeks."
Constructive discussions with COGCC
She said: “Blue Star is also preparing drilling permit applications for Galactica and Pegasus.
“I believe these and other future applications will benefit from the current constructive discussions with the COGCC due to their similarities in objective, location and design of the wells.”
Galactica and Pegasus
The company recently announced prospective resources over Galactica and Pegasus, which were supported by historic well data showing interpreted gas columns associated with each prospect.
No flow test or gas samples were taken from these historic wells and therefore, helium content is undetermined.
A third historical well, the Government Cynthia True #1 on the same greater structural high as Galactica and Pegasus, was tested at a helium concentration of 8.8%.
The company is preparing permit applications over these prospects and will provide further updates to the market in due course.