Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has elected to upgrade the design of the development well at its high-grade Voyager helium project in Las Animas County Colorado, following advice from engineers based on drilling activity in the adjacent Galactica and Pegasus discoveries.
The design upgrade will see a larger production well bore that is expected to enhance production outcomes to further optimise helium recovery.
This is in line with Blue Star’s strategy to find and develop new supplies of low-cost, high-grade helium in North America.
Well drilling in October
The company now expects to commence drilling of the well when the rig is mobilised at the Voyager site in October.
The slight delay will have no impact on the scheduled delivery of the leased helium recovery unit from IACX Energy LLC, which remains on schedule for the fourth quarter.
As well, plant permitting and long lead items are progressing in-line with the scheduled delivery of the IACX plant.
About helium
Helium is a unique industrial gas that exhibits characteristics of a bulk, commodity gas and of a high-value, specialty gas and is considered a 'high-tech' strategic element.
Due to its unique chemical and physical qualities, helium is a vital element in the manufacture of MRIs and semiconductors and is critical for fibre optic cable manufacturing, hard disc manufacture and cooling, space exploration, rocketry, lifting and high-level science.
There is no way of artificially manufacturing helium and most of the world’s reserves have been derived as a by-product of the extraction of natural hydrocarbon gas.