Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) plans to begin a development well drilling program in August for its maiden helium project at the high-grade Voyager discovery in Las Animas County of Colorado.
A drilling contractor has been selected for the program which will initially encompass three wells.
The program incorporates two approved helium development wells (BBB 33#1 and 34#1) as well as an exploratory well on the southern side of an interpreted crest designed to test the area of a new submitted OGDP application.
Drilling of these wells is set to include flow and pressure testing in preparation for Voyager production activities, however, the exploratory well will not be capable of being a producer.
On track for first production
Blue Star remains on track for first helium production and sales from Voyager during Q4 of 2023.
The company’s new development wells are expected to deliver a robust inventory of permitted wells from which to select the initial 2-4 production wells to deliver targeted nameplate helium output at Voyager.
Blue Star does not intend to stop its drilling program after these wells and, as such, the company has submitted its next Oil and Gas Development Plan (OGDP) for the development of the Voyager prospect.
Voyager helium development planned well locations.
Second OGDP submitted
The second OGDP, which has been submitted to the Colorado Oil and Gas Conservation Commission (COGCC), comprises four additional helium development well drilling locations.
This OGDP was amended down from the original five planned wells because of a delay in counterparty return of a negotiated signed mineral lease.
The location for the fifth additional well will be the subject of a future OGDP submission as part of the company’s phase 2 development drilling.
Blue Star is confident of success with its plan for this well as a pre-submission review of the new OGDP has been completed with the COGCC and no issues were identified in this preliminary review.
The company welcomes the implementation by COGCC of a revised permitting process designed to shorten the time between application submission and approval hearing to 4.5 months or less.
READ: Blue Star Helium has helium in the crosshairs ahead of final helium well approvals
Processing facility progress
Meantime, Blue Star’s discussions with a mid-stream company for the supply and operation of a helium processing facility at Voyager are nearing completion with the contract documentation now in agreed form.
The mid-stream company has advised that its technical due diligence is substantially complete and, subject to final sign-off, it expects to execute the documentation shortly.
This company has also confirmed Q4 delivery, installation and commissioning of the facility.