Blue Star Helium’s Jackson 27 Well Surpasses Flow Expectations at Galactica
Blue Star Helium reports robust natural gas flow and high permeability from its Jackson 27 well in Colorado’s Galactica project, underpinning optimistic production forecasts.
- Jackson 27 well achieves natural flow rates up to 320 Mcfd
- Projected stabilized flow rates between 350 and 450 Mcfd, max potential 550 Mcfd
- Helium concentration at 0.41% with 98.31% nitrogen and 1.27% CO2
- Independent engineering confirms high permeability range of 300–750 mD
- Development plans include vacuum compression to optimize production
Strong Natural Flow Rates Confirmed at Jackson 27
Blue Star Helium Limited (ASX: BNL) has announced encouraging flow test results from its Jackson 27 helium development well, part of the Galactica project in Las Animas County, Colorado. The well reached a total depth of 1,183 feet within the Lyons Formation, exhibiting natural gas flow rates that have increased to approximately 320 thousand cubic feet per day (Mcfd) during testing. This rate notably surpasses the sustained natural flow of the nearby State 16 well, which recorded around 150 Mcfd.
Optimistic Production Projections and Reservoir Quality
Independent engineering studies integrated with flow data from Jackson 27 and adjacent wells indicate a permeability range between 300 and 750 millidarcies (mD), suggesting excellent reservoir quality and communication. Based on these parameters, Blue Star projects stabilized flow rates constrained for production optimization between 350 and 450 Mcfd, with a maximum potential rate of 550 Mcfd. These figures reflect a significant step forward in the company’s development planning and economic modelling for the Galactica project.
Gas Composition and Implications for Helium Recovery
Gas analysis from Jackson 27 reveals a helium concentration of 0.41%, accompanied by 98.31% nitrogen and 1.27% carbon dioxide. While the helium percentage is modest, the high nitrogen content and overall gas quality support the potential for efficient helium extraction. The company’s approach includes vacuum compression techniques to optimize production rates and maintain reservoir pressure, which is critical for maximizing helium recovery over the project’s lifespan.
Strategic Positioning in a Growing Helium Market
Blue Star’s Managing Director and CEO, Trent Spry, highlighted the significance of the Jackson 27 well’s performance, noting its location on the eastern flank of the Galactica field and its role in extending the resource base. The strong natural flow and reservoir characteristics reinforce the project’s potential to contribute meaningfully to helium supply, a market increasingly critical for technology and industrial applications worldwide.
Next Steps and Market Outlook
With these results, Blue Star Helium is well-positioned to advance its development plans, incorporating detailed engineering studies and flow optimization strategies. The company’s transparent disclosure, including compliance with ASX Listing Rule 5.30, provides investors with confidence in the technical robustness of the Galactica project. As helium demand continues to rise globally, Blue Star’s progress at Jackson 27 could mark a pivotal chapter in its growth trajectory.
Bottom Line?
Jackson 27’s strong flow rates and reservoir quality set the stage for Blue Star’s next growth phase in helium production.
Questions in the middle?
- How will Blue Star optimize helium extraction given the relatively low helium concentration?
- What are the timelines and capital requirements for scaling production at Galactica?
- How might evolving helium market dynamics impact Blue Star’s development strategy?
