Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has spudded the Sammons 315310C helium well — the first asset to target the company’s Serenity prospect in Las Animas County, Colorado.
The company owns 50% of the exploration well, which is expected to hit total depth in the next 10 days.
From here, the energy stock will take another week to evaluate and test the well’s content in the lab, with results expected a fortnight from arrival.
Big-picture, Sammons is one of four approved helium wells in an area of mutual interest between Blue Star, Prospero Oil and Gas and operator Vecta Oil and Gas.
Drilling at Serenity
The Sammons well is Blue Star’s maiden Serenity helium exploration well and will target the Lyons formation.
Notably, the top Lyons formation — home to the Sammons well — is expected to be structurally similar to helium wells that were recently drilled at Galactica and Pegasus to the north and is estimated pre-drill to be at around 1,285 feet in measured depth.
Essentially, the well is planned to total depth in the gas-bearing Lyons reservoir, which will maximise production if drilling is successful.
On the financial side, dry-hole drilling costs at Sammons remain within the US$150,000 budget, net to Blue Star.
Next steps
Regulators have already approved three follow-up appraisal and development locations at Serenity, so Blue Star will submit its final drill permits as long as it’s happy with the results at Sammons.
The energy stock will keep the market informed of its progress.