Spudding imminent as Blue Star on the cusp of becoming the ASX’s first primary helium producer

Blue Star Helium’s BBB #33 well expected to spud in the week commencing 27 November
This is the first well to be drilled from the initial planned six well inventory
Once BBB #33 is completed it will be tied into production facilities being installed later this year

Special Report: Blue Star’s drilling contractor has advised that the BBB #33 production well will be ready for drilling in the week commencing November 27 – the first of an initial planned six well inventory.

Blue Star Helium (ASX:BNL) has been putting all the pieces together needed to bring its maiden development project, Voyager, into production during Q4, 2023.

The project is 6 miles from the historical Model Dome field in Las Animas Country, Colorado, which hosts amongst the top three highest helium concentrations in the world.

Achieving this goal will make Blue Star Helium one of the first ASX-listed primary helium plays to enter production, allowing it to tap into helium prices that have been floating towards the stratosphere due to a critical lack of supply.

The rare gas — used in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines and more — currently sees US short-term contract and spot pricing of between US$450 and US$3,000 per thousand cubic feet (Mcf) depending on its purity (98% to 99.999%).

Pre-production activities on-track

BNL says drilling contractor Hydro Resources Rocky Mountain has instructed drilling will kick off at the end of November.

BBB #33 is an offset well to the BBB#1 discovery well where a 134ft gas column was interpreted with gas flowing to surface containing 8.8% helium.

This helium concentration seen at BBB#1 is comparable to that seen at the Model Dome historic production analogue which averaged 8% helium some six miles south on the same regional structure.

BBB #33 well is the first well to be drilled from the initial planned six well inventory with final site works to be undertaken prior to Thanksgiving.

A spudder rig will then be used to set the surface conductor in preparation for arrival of the main drill rig.

BNL says the main rig is expected to mobilise following Thanksgiving with a target arrival during the week starting 27 November.

Exciting time for Blue Star

BNL managing director and CEO Trent Spry says he is looking forward to being in the field to oversee the drilling of the company’s first production well.

“It is an exciting time for Blue Star as we await not only the results of this first production well but also the final drilling approvals for an additional four helium production wells that can be tied into our first helium production facility operated by IACX.

“These further approvals will bring our initial production drilling inventory to 6 wells and the flexibility to optimise drilling of the discovered resource at Voyager with BBB #33 being the first.”

What’s next?

It is anticipated that upon successful testing the BBB #33 well will be completed and ready to be tied in to the production facilities being installed by IACX later this year.

Casing and conductor are already on location and well heads are ready to be delivered to site for completion.

 

This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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