Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has flowed helium to the surface at its JXSN#4 exploration well, part of the Galactica/Pegasus prospect in Las Animas County, Colorado.
The energy stock drilled the well to a final depth of 1,043 feet this week, encountering both the upper and lower Lyons sands in order to bring gas to the surface.
While it’s still early days, a preliminary gas composition analysis has returned a 6.5% helium reading. To get a clearer picture, Blue Star plans to send additional samples to a second lab, with results anticipated within a fortnight.
JXSN#4 is the fourth exploration well to be drilled this year at Galactica/Pegasus and the previous three wells have discovered helium-bearing columns measuring up to 230 feet and containing up to 3.14% helium.
Key results from recent Galactica/Pegasus wells.
These wells also proved the company’s previous interpretations of gas on logs at the Denton B #1 and Colorado #B-1 historical wells, which are also on the Galactica/Pegasus structure.
Reconfirming Galactica/Pegasus’ potential
Commenting on the development, Blue Star managing director and CEO Trent Spry said exploration at Galactica/Pegasus continued to deliver.
“We are delighted to have returned high-concentration helium from a fourth consecutive exploration well in this area,” he explained.
“The result reconfirms Galactica/Pegasus as one of our high-priority development areas in Las Animas. This dynamic is reflected in our current development well scheduling for this field.
“The results of this well will be integrated into current resource update process for Galactica/Pegasus, which is expected to culminate in the declaration of contingent resources for this field.”
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