Blue Star Helium has reported helium concentrations of 2.14% from its JXSN#3 well, located in Las Animas County, Colorado.
The helium exploration firm on Tuesday (7th June) confirmed its findings in a progress update that also confirmed that flow rates are consistent with data report from the historic Model Dome field.
News of Blue Star Helium’s success comes as helium prices are at an all-time high.
Trent Spry, Managing Director of Blue Star Helium said, “We are happy to confirm high helium concentrations from the JXSN#3 well to round out an exceptionally successful initial exploratory water well programme at our Galactica/Pegasus prospects, which saw high helium concentrations being discovered in each of the three wells drilled.”
“The gas column in JXSN#3 is located outside the Galactica P50 prospective resource contour and is larger than expected. JXSN#3 is located approximately 6.4 miles southeast of the Denton B#1 well, where Blue Star had previously interpreted gas to be present on historic logs.”
“These two wells show that the Lyons formation is helium bearing across a large part of the Galactica structure where Blue Star has a dominant/extensive acreage coverage.”
On top of the above, Blue Star Helium also said four helium well drilling applications are currently pending COGCC approval as immediate follow-ups to the Galactica/Pegasus discoveries and a further 29 helium wells are currently in various stages of the permitting pipeline.
Consulting engineers SIGIT are also currently preparing a plan of development for Blue Star’s Las Animas acreage, including front-end engineering and design studies on processing facilities at Voyager and Galactica/Pegasus.
Spry continued, “Helium prices are at all-time highs, with a number of commentators reporting helium sales of up to $600/mcf and anecdotally helium spot sales between $2,00 and $3,000 per mcf. Naturally, we are keen to sell helium into this market as soon as possible.”