Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has had two Oil and Gas Development Plans (OGDP) approved for four helium development well locations at Galactica/Pegasus in Las Animas County of Colorado.
At its hearing overnight in Denver, the Colorado Oil and Gas Conservation Commission (COGCC) approved two well locations each at BNL’s State 9 & 16 and State 35 & 36 development wells.
The company will now submit final permits to drill the four development wells after receipt of the COGCC’s written orders, which are expected shortly.
Approval for the final permit to drill is expected 30 to 40 days after Form 2 submission.
Area development
As BNL looks to develop the Galactica/Pegasus area, drilling of these wells is likely to include drilling of an early development well for additional pressure and flow analysis, with the further three wells being targeted for completion closer to the commissioning of the planned processing facility.
In taking this approach, there will be limited time between drilling and exposing the helium reservoir and shutting the well in prior to tie-in to the production facility.
The four wells (State 09, 16, 35 and 36), as well as the additional seven development wells at Galactica/Pegasus currently under COGCC review, are all which offset the JXSN#1 and JXSN#2 discovery exploration wells, are shown below:
The table below outlines the current status of BNL’s development well permitting activities in Las Animas County, inclusive of the approvals granted overnight at Galactica/Pegasus.
