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Highlights
- Jackson 27 well shows strong gas flow, confirming high production potential
- No water encountered in Lyons Formation, indicating gas saturation
- Blue Star advances Galactica helium project toward commercial development
Blue Star Helium (ASX:BNL) is progressing steadily at its Galactica project in Colorado, with the Jackson 27 development well delivering promising results. The well, which forms part of a series of new developments at the site, has successfully reached its total depth of approximately 360 metres and has shown a strong sustained gas flow—marking another milestone in the company’s drive toward helium production.
Drilled as the fourth development well at the Galactica site, Jackson 27 targeted high-quality sandstone at the top of the upper Lyons Formation. This specific geological layer is considered well-connected across the gas column and holds strong potential based on historical data from nearby wells. During drilling, gas flowed naturally and persistently, with the well ultimately being completed in the upper section of the Lyons Formation at a depth of 18.6 metres. Notably, wireline logging confirmed that the drilling encountered no water—a critical sign that the Lyons Formation is largely gas-saturated, both in its upper and potentially lower layers.
The drilling and completion activities were part of a farm-in arrangement with Helium One Global (AIM:HE1), which is funding the initial US$450,000 for the Jackson 27 well. This collaboration strengthens Blue Star's efforts to accelerate development without placing the full financial burden on its own balance sheet.
While final results from lab analysis of gas samples are still pending—particularly regarding helium and carbon dioxide concentrations—Blue Star has begun installing a wellhead. This step will enable future pressure readings and extended flow testing. These developments are seen as key indicators of the project’s progression toward commercial readiness.
The Galactica/Pegasus development is a large-scale, multi-product opportunity that includes helium as the primary focus. The company is exploring various infrastructure options, including leveraging leased and third-party operated processing plants similar to those in place at its nearby Voyager site. In the longer term, Blue Star plans to expand operations to include carbon dioxide by-products and the capability for in-field production of ultra-high-purity gaseous helium (99.999%).
With the Jackson 27 well demonstrating robust gas flow and geologic potential, Blue Star (BNL) continues to de-risk and mature its Galactica project, setting the stage for a potential leap into commercial helium production.
