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Highlight
- Blue Star Helium (ASX:BNL) successfully drills Jackson 31 well in Colorado, intersecting 57 feet of gas-saturated Lyons Sandstone.
- Natural gas flow suggests strong reservoir communication and potential commercial viability, with helium and CO2 samples sent for analysis.
- The Galactica project is bolstered by collaborations and adjacent helium projects, setting the stage for significant helium production.
Blue Star Helium (ASX:BNL) has reported a significant achievement with its Jackson 31 helium development well in Colorado, marking a pivotal moment in its development campaign. The well successfully intersected 57 feet of high-quality, gas-saturated Lyons Sandstone, with gas flowing naturally, indicating robust reservoir communication and hinting at commercial potential.
Promising Developments in Jackson 31
The gas flow was observed during drilling and at the total depth of 1210 feet, with the reservoir intersected at 1153 feet. The absence of water in the Lyons Formation further supports the promise of the project. Currently, gas samples have been sent to laboratories for helium and carbon dioxide analysis, while preparations for surface pressure readings and flow testing are underway.
Significance of Helium and CO2
Helium is a highly valued rare gas, essential in diverse applications such as semiconductor manufacturing, nuclear energy, and medical imaging. Its market price ranges between US$400 and US$500 per thousand cubic feet, reflecting its irreplaceability. High purity CO2 is another potential product from the project, with uses in the food and beverage industry, welding, agriculture, and more.
Galactica Project Outlook
The Jackson 31 well is part of the broader Galactica/Pegasus development discovered in 2022. Previous wells in the area have demonstrated promising helium concentrations. The project’s prospects are further de-risked by the nearby Red Rocks helium project, which is already producing helium. Upon successful testing, plans are in place to integrate Jackson 31 into production facilities.
Collaborations and Future Prospects
Blue Star Helium’s ongoing engineering work aims to optimize CO2 removal and sale prior to processing helium. The development of Galactica is further supported by a joint venture with Helium One Global, with significant funding provided. Engineering and market analysis efforts continue to refine development configurations, production forecasts, and cost estimates, paving the way for a significant footprint in helium production.
