Can Blue Star Helium Turn Bubba State 3’s Promising Results into Commercial Success?

Strong Performance at Bubba State 3

Blue Star Helium Limited (ASX:BNL) has announced encouraging initial flow test results from its Bubba State 3 well located in Lincoln County, Colorado. The well demonstrated a sustained flow rate of 740 thousand cubic feet per day (Mcfd), with a modelled Absolute Open Flow (AOF) forecast of 885 Mcfd. These figures suggest a robust production potential from the Keyes formation, a geological layer previously overlooked but now validated as a promising helium resource.

Helium Concentrations Align with Expectations

Gas analysis from the Bubba State 3 well confirmed helium content at approximately 2.01%, consistent with prior testing in the area. This concentration is considered high for the region and supports Blue Star Helium’s strategic acquisition option in the Great Plains Field. The presence of methane, nitrogen, and carbon dioxide alongside helium reflects typical gas compositions in such reservoirs, but the helium percentage remains the key value driver.

Strategic Implications and Next Steps

Blue Star’s Managing Director and CEO, Trent Spry, highlighted the significance of these results in validating the company’s helium play in Lincoln County. The company is preparing for the next phase of testing at the Big Wampum 4 well, which is located approximately 100 miles from existing helium assets in the Animas Las area. This proximity offers operational synergies and access to established processing infrastructure, potentially enabling rapid and cost-effective development.

Reservoir Characteristics and Development Potential

The Keyes formation exhibits modest permeability, which influences flow rates and overall gas recovery. However, the sustained flow and stable reservoir pressure of around 1,625 psia at mid-perforation depth indicate a commercially viable resource. Early analysis suggests reservoir boundaries extend roughly 500 feet from the well, with a radius of investigation near 900 feet, providing a solid basis for further development planning.

Outlook for Blue Star Helium

With the Bubba State 3 results reinforcing the helium potential of the Great Plains Field, Blue Star Helium is well positioned to advance its strategic acquisition and development plans. The company’s focus on low-cost, high-grade helium production in North America aligns with growing industrial demand for helium in sectors such as medical imaging, semiconductor manufacturing, and space exploration.