Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF)’s maiden helium exploration well, Enterprise 16#1, has spudded.
The Colorado exploration well, 100%-owned by Blue Star and situated in Las Animas County, is expected to take around six days to reach a total depth of roughly 980 feet.
Once drilling is complete, the evaluation and testing program will commence — again, taking roughly six days to complete. Open hole wireline logging across the Lyons formation is planned, followed by flow testing.
Interim results from wireline logging and initial flow-back can be expected prior to the completion of flow testing.
Enterprise 16#1 is set to test an interpreted structural high within the Enterprise prospect, targeting a helium pay zone in the Lyons formation.
The location is interpreted to be up-dip of the Hill#2 water well, which was drilled in October 2021 and exhibited 29 feet of gas in the Lyons formation with a gas water contact interpreted at 838 feet on wireline logs.
“Significant milestone”
Blue Star managing director and CEO Trent Spry commented: “The spudding of our maiden helium exploration well is a significant milestone for the company.
“To have worked up a portfolio of prospects from first principles, assembled the acreage, undertaken the comprehensive COGCC requirements to permit the initial well – including being the first operator to successfully permit a helium exploration well in Colorado since January 2021 – and now to have commenced drilling is an achievement that makes the entire team incredibly proud.
“We have built an industry-leading helium exploration and development business with a premier holding of prospective lands that we are now looking to rapidly advance.
“The drilling of Enterprise 16#1 represents just the first in a series of ten wells planned to be permitted and drilled across the portfolio this year.
“The helium market is currently experiencing severe and protracted supply restrictions, particularly in the US, making our 2022 exploration program of critical interest to market participants.”