Three Well Helium Development OGDP Approved Galactica/Pegasus

Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) (Blue Star or the Company) provides an update on helium development well permitting at its Galactica/Pegasus helium project in Las Animas County, Colorado.

Highlights

• COGCC approves OGDP for three proposed helium development wells (Jackson #01, Jackson #02 and Jackson #03) at the Galactica/Pegasus project.
• These three wells are to be drilled as offset development wells to the JXSN#1 and JXSN#2 helium discoveries and are expected to be production wells.
• On final approval (Form 2) of this OGDP, Galactica/Pegasus drilling inventory will comprise seven permitted helium development wells, four helium development wells awaiting OGDP approval, and 20 further well locations identified for permitting.
• Galactica/Pegasus development planning is advancing with a range of commercialisation pathways under consideration, including an initial leased plant and third party operated option with expansion expected to include a potential CO2 by-product stream.
• Commencement of helium production and sales from the neighbouring Red Rock project demonstrates the expected viability of Blue Star’s Galactica discovery and validates the chosen midstream development pathway for its maiden high-grade Voyager helium project.

Blue Star Managing Director and CEO, Trent Spry, commented:

“While our maiden Voyager development is the focus for our operations team targeting Q4 first helium, work continues in parallel on the exciting Galactica/Pegasus project where the Company had four successful discoveries over the two prospects in 2022 and moved into development planning.

“Galactica/Pegasus is a larger scale project, and we are pleased that three more well locations have been approved. With four wells already approved this will soon bring the development well inventory to seven with an additional four already proceeding through the OGDP process and a further 20 wells in various degrees of permitting readiness.

“Galactica/Pegasus development planning is advancing with a range of commercialisation pathways under consideration, including an initial leased plant and third party operated option with expansion expected to include a potential CO2 by-product stream.

“The third-party owned Red Rocks helium project adjoining Galactica recently commenced selling helium into the market from two wells, via an IACX-operated helium recovery plant. Not only does this project demonstrate the expected viability of our Galactica project, it also validates the broader commercialisation model of Blue Star’s chosen development pathway at Voyager.”

Galactica/Pegasus OGDP approved

The Colorado Oil and Gas Conservation Commission (COGCC) has approved the Oil and Gas Development Plan (OGDP) relating to three proposed helium development wells (Jackson #01, Jackson #02 and Jackson #03) at the Galactica/Pegasus project. Following this approval, Blue Star is set to submit the final Form 2s in respect of these wells.

The Jackson #01, Jackson #02 and Jackson #03 wells are to be drilled as offset development wells to the JXSN#1 and JXSN#2 helium discoveries.

On approval of the Form 2s of this newly approved ODGP, the Company will have seven helium development wells approved for drilling at Galactica/Pegasus. Final permits have previously been received for the drilling of the State 09, 16, 35 and 36 helium development wells (see BNL ASX release of 19 April 2023).

Click here for the full ASX Release

This article includes content from Blue Star Helium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.