Blue Star Helium (ASX:BNL) has won approval from Colorado regulators to drill five fresh helium wells at its flagship.
The apparently sci-fi-fantasy themed Galactica/Pegasus project will see up to 5 new drillholes sunk following allowance from the Colorado Energy and Carbon Management Commission (ECMC).
The company’s project is located in the Las Animas County; drilling will commence this quarter (all cards in order.)
Blue Star is hoping that – if not all 5 wells, at least some – can replicate the success the company had downhole its separate ‘State 16’ well which hit native helium and is currently tapped off ahead of production.
The Galactica helium production facility – part of Blue Star’s overall project vision – is expected by geotechs to handle gas from State 16, and, hopefully, any of the new wells being tapped with ECMC’s fresh approval.
“The newly approved wells are located to the south and southwest of the successful State 16 development well,” the company stated on Friday.
And for those taking notes on progress: “Currently, the Company has 1 completed development well waiting for tie into production and an inventory of 15 helium development well locations approved at Galactica/Pegasus including Form 2 approvals for the drilling for 8 development wells including those the subject of this announcement.”
(The company also noted its project tenement adjoins another called Red. Rocks which successfully sells helium into the US market.)
BNL last traded at 0.4cps.
Join the discussion: See what HotCopper users are saying about Blue Star Helium and be part of the conversations that move the markets.