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Blue Star Helium (ASX:BNL) approved for drilling at four development wells at Galactica/Pegasus, Colorado

ASX News, Energy
ASX:BNL      MCAP $13.47M
15 September 2022 15:35 (AEDT)

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Blue Star Helium (BNL) has received approval for two oil and gas development plans for four helium development well locations at the Galactica/Pegasus area in Colorado.

The approvals were given by the Colorado Oil and Gas Conservation Commission (COGCC).

The company will submit final permits to drill in respect of the four development wells after receipt of the COGCC’s written orders, which are expected soon.

Approval for the final permit to drill is expected from 30 to 40 days after submission.

Drilling of the wells is scheduled as part of the plan of development for the Galactica/Pegasus area which includes drilling of an early development well for additional pressure and flow analysis.

Also, a further three wells have been targeted for completion closer to the commissioning of the planned processing facility.

This will allow for limited time between drilling and exposing the helium reservoir and shutting the well prior to tie-in to the production facility.

The four wells and an additional seven development wells at the prospect are currently under COGCC review, which will offset the JXSN#1 and JXSN#2 discovery exploration wells.

Shares in Blue Star Helium were in the grey to trade at 2.9 cents nearing market close.

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