Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has taken another stride on the fast track to bring its Voyager prospect and broader helium portfolio in Las Animas County, Colorado, to production with consulting engineers appointed to prepare a plan of development.
Consulting engineers SIGIT Operating Company LLC will prepare the plan of development for the Las Animas portfolio and this is expected to be completed during the September quarter of 2022.
This work will include an initial Front-End Engineering and Design (FEED) study for a processing facility at Voyager prospect.
Voyager on fast-track
The company has also appointed Sproule to prepare the first independent resource assessment for the Voyager prospect and this is expected to be completed this quarter.
Voyager is being fast-tracked for development after the breakthrough success of BBB#1 exploratory water well which returned a 134 ft gas column in the Lyons formation with a calculated air-free helium concentration of 8.8%.
Blue Star has been working with SIGIT since Q3 CY2021 when it prepared an initial high-level engineering study and capital investment analysis of a standardised facility.
Plan of development
SIGIT’s plan of development is set to include:
- Plant asset optimisation including an assessment of power options;
- Gathering system design; and
- FEED for the processing plant including an evaluation of technology providers and other long-lead suppliers, scheduling and total installed cost for the facilities.
The FEED study is also expected to include consideration of a joint development of Voyager with the nearby Enterprise prospect.
As part of the plan of development Blue Star also expects to begin a FEED study this quarter for a facility in the east for the Galactica, Pegasus and Serenity prospects.
Independent resource assessment
In parallel with SIGIT’s work, Sproule will prepare the first independent resource assessment for Voyager.
Blue Star’s current Las Animas P50 net unrisked prospective helium resource of 13.4 Bcf does not include an estimate for Voyager.
This week Blue Start expects to submit applications to drill the initial two Voyager appraisal and development wells with the remaining three to follow shortly thereafter. These well locations are all currently in the 'Permit Preparation' phase.
The company is also in discussions with a rancher in respect of the potential drilling of an additional water well at Voyager in the coming months.