Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) is continuing its aggressive helium exploration program in Las Animas County, Colorado, and is preparing to drill two more new exploratory water wells at Galactica/Pegasus.
The new wells will follow up the helium discoveries in the recent three-well JXSN#1, 2 & 3 program.
They will be drilled after completion of the maiden helium well at Serenity prospect, Sammons 315310C, which is expected to begin in the week beginning June 27, 2022.
Following Serenity, the drill rig will move to Galactica/Pegasus to drill the two new exploratory water wells.
After success at the JXSN 1, 2 and 3 wells at Galactica and Pegasus, the two new wells will further test the extent of the gas-filled closures ahead of additional appraisal and development helium wells.
Key results from recent Galactica/Pegasus exploratory water wells.
Enterprise-16-1 workover
In the meantime, Blue Star is mobilising rig and crew to the Enterprise 16-1 helium well site to begin the workover of the well.
Blue Star Helium Ltd is an independent helium exploration and production company, headquartered in Australia, with operations and exploration in North America.
Blue Star’s strategy is to find and develop new supplies of low-cost, high-grade helium in North America.
For further information please visit the company’s website at www.bluestarhelium.com.
The company plans to drill four helium wells at Galactica/Pegasus during the second half of 2022 subject to a COGCC hearing on July 19, 2022, and final approval.
Further plans
Further permits and drilling of 2-5 helium wells at Voyager are also expected during the second half of the year with the company set to deliver appraisal and development of the helium discovery announced in BBB#1.
In addition, resource updates, a plan of development and process facilities FEED for Voyager and Galactica/Pegasus are advancing with completion expected during the current quarter and in the September quarter.
About water wells
The water wells are drilled by a contractor in line with a drilling contract between the contractor and the rancher. Blue Star is not a party to this contract.
The well is the property of the rancher and Blue Star does not have a legal or economic interest in it.
Water wells are drilled for the sole purpose of producing water for use by the rancher. They may not produce helium and may not be converted into producing helium wells.
About helium
Helium is a unique industrial gas that exhibits characteristics both of a bulk, commodity gas and of a high-value specialty gas and is considered a 'high tech' strategic element.
Due to its unique chemical and physical qualities, helium is a vital element in the manufacture of MRIs and semiconductors and is critical for fibre optic cable manufacturing, hard disc manufacture and cooling, space exploration, rocketry, lifting and high-level science.
There is no way of manufacturing helium artificially and most of the world’s reserves have been derived as a byproduct of the extraction of natural hydrocarbon gas.