State 9 Well Spudded: Blue Star Targets Lyons Formation Reservoir
Blue Star Helium has commenced drilling the State 9 well at its Galactica helium project in Colorado, marking a significant step in its helium development program. The well is progressing toward the Lyons Formation reservoir with plans for flow testing and production tie-in.
- State 9 well spudded at Galactica helium project in Colorado
- Drilling progressing through intermediate hole section targeting Lyons Formation
- Wireline logging and flow testing planned at total depth
- Well expected to be completed and connected to production facilities
- Helium One Ltd funding first US$450,000 under farm-in agreement
Drilling Milestone at Galactica
Blue Star Helium Limited (ASX: BNL) has officially spudded the State 9 well at its flagship Galactica helium project located in Las Animas County, Colorado. This marks the sixth well in the current drilling campaign aimed at unlocking helium resources within the region. The company has successfully set casing for the intermediate shallow conductor hole and is now preparing to drill deeper into the Lyons Formation, a known gas reservoir.
Technical Progress and Testing Plans
Following the installation and testing of blowout preventers at the base of the intermediate section, drilling will continue to the target depth within the upper Lyons gas reservoir. Upon reaching total depth, Blue Star plans to conduct wireline logging to assess the geological and reservoir characteristics. This will be followed by flow and pressure testing at the wellhead to evaluate the well’s production potential.
Strategic Partnerships and Funding
The Galactica project is a key component of the broader Galactica/Pegasus helium development initiative, which Blue Star is advancing in partnership with Helium One Ltd. Under a farm-in agreement, Helium One is funding the initial US$450,000 of the State 9 well’s drilling costs, underscoring confidence in the project’s prospects. This collaboration supports Blue Star’s strategy to develop low-cost, high-grade helium supplies in North America.
Regional Context and Future Outlook
Adjacent to Blue Star’s Galactica project is the Red Rocks helium project, owned by a third party, which further validates the helium potential of the region. The successful completion and tie-in of State 9 to production facilities would mark a significant step toward commercialising helium resources in this emerging energy sector. Investors will be watching closely for flow test results and production updates as drilling progresses.
Bottom Line?
As drilling advances, all eyes turn to flow test outcomes that will shape Blue Star’s helium production trajectory.
Questions in the middle?
- What are the expected production volumes and timelines following State 9 completion?
- How will Helium One’s funding impact Blue Star’s overall project economics?
- What are the implications of nearby helium projects on Galactica’s commercial potential?
