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Blue Star Helium (ASX:BNL) confirms high concentration helium discovery at Galactica/Pegasus

ASX News, Energy
ASX:BNL      MCAP $13.47M
05 October 2022 16:37 (AEDT)

Source: Blue Star Helium (Not featured in this article)

Blue Star Helium (BNL) has confirmed a high concentration helium discovery at the JXSN#4 discovery well in its Galactica/Pegasus prospect in Las Animas County, Colorado.

The company has confirmed a 233.5 feet gas column with 133.5 feet of net pay across the upper and lower Lyons at JXSN#4.

The well was successfully drilled to a final total depth (TD) of 1043 feet, encountering the upper and lower Lyons sands which both flowed gas to surface.

The company’s analysis of the log data confirmed the intersection of the top of the Lyons formation at 753 feet measured depth and a gas quality to a depth of 986.5 feet across the upper and lower Lyons sands.

There is a gas water contact in the lower Lyons sand at 986.5 feet which has not been included in the net pay calculation.

Gross reservoir rock for both the upper and lower Lyons sands is 213 feet to the base of log data with net pay in the well of 133.5 feet.

Managing Director and CEO Trent Spry said this is the fourth consecutive helium discovery on the field in the targeted Lyons formation, returning high-concentration helium from JXSN#4.

“These four successful discovery wells on Galactica/Pegasus provide the structural and stratigraphic control and high helium reservoir gas composition for the planned offsetting development wells which are well advanced,” he said.

“The results of this well will be integrated into current resource update process for Galactica/Pegasus which is expected to culminate in the declaration of contingent resources for this field.”

All results, including the previous three discovery wells, will be incorporated into an updated resource declaration at Galactica/Pegasus.

Shares in Blue Star Helium ended the day 6.45 per cent in the red to close at 2.9 cents.

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