Blue Star Helium Launches Key Well Tests in Colorado to Unlock Growth
Blue Star Helium has initiated well testing at its Great Plains assets in Lincoln County, Colorado, aiming to confirm commercial viability and guide development decisions. Positive results could accelerate the company’s expansion in North America’s helium market.
- Well testing commenced at Great Plains Field, Lincoln County, Colorado
- Historic helium concentrations between 1.36% and 2.02% in existing wells
- Testing to measure helium flow rates, pressures, and commercial potential
- Potential for rapid, low-capex development leveraging existing infrastructure
- Access to 283 square miles of 3D seismic data for further exploration
Strategic Testing Begins in Colorado
Blue Star Helium Limited (ASX:BNL) has officially commenced well testing activities at its newly optioned helium assets located in the Great Plains Field, spanning Lincoln and Cheyenne Counties in Colorado. This marks a pivotal step in the company’s strategy to expand its helium resource base in North America, a region increasingly critical for global helium supply.
The initial focus is on two wells, Ma State 16 and Bubba State 3, which have historic helium shows ranging from 1.36% to 2.02%, alongside raw gas flow rates reported between 5,000 and 10,000 Mcfd. These figures suggest promising helium concentrations that could underpin commercial production.
Assessing Commercial Viability and Development Pathways
The current testing program involves detailed downhole operations targeting the V11 or Keyes formations. By measuring helium concentrations, flow rates, and reservoir pressures, Blue Star aims to establish reliable gas well type curves and estimate expected ultimate recoveries (EUR). These data points are critical for assessing the commerciality of the assets and informing whether to exercise acquisition options and proceed with development.
Positive test outcomes could serve as a major catalyst for Blue Star, enabling a rapid and capital-efficient development phase. The company highlights operational synergies with its existing projects, which may reduce costs and accelerate time to market.
Leveraging Infrastructure and Data for Expansion
The acquisition option includes access to existing infrastructure such as the Tumbleweed gas gathering system and the Ladder Creek helium processing facility. This infrastructure footprint offers Blue Star a significant advantage in scaling production without the need for extensive new capital expenditure.
In addition, the portfolio encompasses approximately 283 square miles of 3D seismic data, providing a valuable resource for identifying additional exploration targets and enhancing the understanding of the region’s helium potential. This data-driven approach aligns with Blue Star’s technical expertise and ambition to become a significant helium producer in North America.
Context in the Helium Market
Helium’s unique industrial applications, from MRI machines to semiconductor manufacturing and space exploration, make it a highly strategic commodity. With helium primarily sourced as a by-product of natural gas extraction, dedicated helium exploration companies like Blue Star are increasingly important in securing supply amid growing demand.
Blue Star’s move into Colorado’s Great Plains Field complements its existing projects and positions the company to capitalize on the evolving helium market dynamics. The upcoming test results will be closely watched by investors and industry observers as indicators of the company’s near-term production potential and growth trajectory.
Bottom Line?
Blue Star’s well testing in Colorado could unlock a low-cost helium production hub, but results will be the true test of commercial promise.
Questions in the middle?
- Will the well testing confirm helium concentrations sufficient for commercial development?
- How quickly can Blue Star transition from testing to production if results are positive?
- What additional exploration targets might the 3D seismic data reveal in the Great Plains Field?
