Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has received approval from the Colorado Oil and Gas Conservation Commission (COGCC) for its Sammons Ranch Oil and Gas Development Plan (OGDP) in Las Animas County, Colorado.
Approval of the Vecta Oil and Gas Ltd’s OGDP hearing held overnight was the residual condition precedent to the formation of the area of mutual interest (AMI).
The Sammons Ranch OGDP consists of four proposed helium exploration wells located in the AMI agreed between Blue Star (50%), Vecta (25% operating interest) and Prospero Oil and Gas LLC (25% non-operational interest).
The AMI includes Blue Star’s Serenity prospect, located immediately southeast of its Galactica and Pegasus prospects.
Final permit to drill
Approval of the OGDP and associated Forms 2A allows Vecta to submit its final permit to drill for the Sammons 315310C well, which is expected to be done in the next few days.
Blue Star understands that approval for the final permit to drill is typically received within 30 days of its submission.
Planning for the execution of the Sammons 315310C well is underway with drilling expected to begin promptly after receipt of the approved final permit to drill.