Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) is expecting the final tick of approval to drill the first two helium development wells at its high-grade Voyager property in Colorado this month.
Wells BBB 33#1 and 34#1, which offset the BBB#1 helium discovery in Las Animas County, have been earmarked for production ahead of flow and pressure testing later this year.
Blue Star expects to generate its first batch of saleable Voyager helium in the second half of this year.
Voyager helium development planned well locations.
What’s to come?
Blue Star recently picked up some strategic mineral crestal leases and inked surface access agreements — moves that are expected to boost Voyager’s contingent resource profile and help the company nail down a location for its helium processing facility.
The helium stock is also in commercial talks to lease a helium facility, with an agreement anticipated in the coming weeks.
Blue Star is already planning its next oil and gas development plan (OGDP) submission to the Colorado Oil and Gas Conservation Commission, which has expanded to include five helium wells.
Coupled with BBB 33#1 and 34#1, Blue Star hopes the submission will tee up a highly prospective portfolio from which it can cherry pick three to four initial production assets.
Advancing exploration and development prospects
Blue Star managing director and CEO Trent Spry said: “We are very pleased to have now secured the majority of the Voyager helium resource area with these new crestal leases.
“While infill leasing will continue in the background, these leases are expected to significantly add to our net contingent resource and have allowed inclusion of highly regarded well locations in the upcoming OGDP submission.
“It will also allow for additional crestal locations to be added to the inventory going forward. The new surface access allows for optimal placing of the helium facility and a more efficient gathering gas system.
“While in Denver recently we met with the mid-stream company that will provide and operate the initial facility at Voyager with discussions now highly advanced and final document signing expected in the coming weeks.”
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