Galactica Project Progress Hinges on Upcoming Helium Lab Results
Blue Star Helium has successfully drilled the State 9 well at its Galactica helium project in Colorado, confirming natural gas flow and progressing towards production. Laboratory tests on helium and CO2 concentrations are underway as the company prepares for production tie-in.
- State 9 well drilled to total depth with gas confirmed
- Natural gas flow observed during drilling at Lyons Sandstone formation
- Samples sent for helium and CO2 concentration analysis
- Wellhead equipment installed for surface pressure and flow testing
- Joint venture farm-in agreement with Helium Global One Ltd advancing
Successful Drilling Milestone
Blue Star Helium Limited (ASX – BNL) has marked a significant milestone in its Galactica helium project by successfully drilling the State 9 well to its total depth of 1,225 feet in Animas County, Colorado. The well encountered the Lyons Sandstone formation at around 1,165 feet, a key target zone known for its gas saturation. Notably, the well exhibited natural gas flow during drilling, a promising indicator of reservoir quality and potential production capability.
Gas Confirmation and Laboratory Analysis
Wireline logs confirmed the presence of gas throughout the upper Lyons formation, with no water encountered, suggesting a robust gas column. Early samples collected from the well are currently undergoing laboratory analysis to determine helium and carbon dioxide concentrations. These results will be critical in assessing the commercial viability of the gas and guiding further development plans.
Advancing Towards Production
In preparation for production testing, wellhead equipment has been installed to measure surface pressure and facilitate flow testing. Blue Star Helium anticipates that, following successful flow tests, the State 9 well will be tied into existing production facilities. This step is expected to transition the project from exploration to production, potentially unlocking new revenue streams for the company.
Strategic Partnerships and Funding
The Galactica project is being advanced under a joint venture with Helium Global One Ltd, which has committed US$450,000 as part of a farm-in agreement. This partnership not only provides financial support but also aligns expertise to accelerate the project's development. Blue Star Helium's management expressed gratitude to service providers and partners who contributed to the successful drilling campaign.
Looking Ahead
With the State 9 well now drilled and gas presence confirmed, Blue Star Helium is positioned to move swiftly into production testing and further resource evaluation. The company’s progress at Galactica underscores the growing importance of helium exploration in North America, a market increasingly critical for technology and industrial applications.
Bottom Line?
Blue Star Helium’s State 9 success sets the stage for production tests that could unlock significant value at Galactica.
Questions in the middle?
- What will the helium concentration results reveal about commercial viability?
- How quickly can Blue Star Helium complete flow testing and tie-in operations?
- What impact will the Helium Global One farm-in agreement have on project timelines and funding?
