Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) is set to spud its maiden serenity helium exploration Sammons 315310C well targeting the Lyons formation at Las Animas County in Colorado.
The operator has advised the company that the rig has been contracted and the well is planned to spud in the week commencing June 27, 2022.
The Sammons 315310C well is one of four approved helium wells situated in the area of mutual interest (AMI) agreed between Blue Star (50%, non-operated interest), Prospero Oil and Gas LLC (25%, non-operated interest) and Vecta Oil and Gas Ltd (25% operating interest).
Notably, the AMI includes Blue Star’s Galactica and Pegasus prospects where the company recently made three significant discoveries immediately southeast of the Serenity AMI.
Looking ahead, Blue Star has approved three follow up appraisal and development locations with final permits to drill to be submitted upon success at Sammons 315310C well.
Serenity drilling
The Sammons 315310C well is the maiden Serenity helium exploration well and will target the Lyons formation.
The top Lyons formation at the well location is expected to be similar to recent wells drilled at Galactica and Pegasus to the north.
The well is planned to total depth (TD) in the gas-bearing Lyons reservoir to maximise production upon success.
The rig, crew and operational team are the same as those used on Blue Star’s three recent discoveries.
Budgeted dry-hole costs for drilling of the Sammons well remain in the order of US$150,000 net to Blue Star.
Blue Star’s lease holding and key well locations.
Potential at Serenity
Blue Star’s re-interpretation of offset logs showing gas in the Lyons formation, surface mapping and proprietary gravity and magnetics interpretation highlights the significant potential of Serenity leading to drilling in the first round of exploration.
The Serenity AMI contains the historic State #3053-36-4 well where Blue Star has performed wireline log interpretation highlighting gas on logs in both the upper and lower Lyons.
The part of the Serenity prospect being tested by the upcoming Sammons well is interpreted to be up-dip and fault-separated from the State #3053-36-4 well where gas has been interpreted.
Notably, the Serenity prospect has the potential to significantly increase the company’s resource base.
Upon success and integration of the well data into Blue Star’s geologic model, Sproule will be engaged to prepare the first independent resource assessment for the Serenity prospect.
Structural schematic cross section across Serenity prospect.