Blue Star Helium (ASX:BNL) announced positive initial results from its Jackson 4 L4 3154 development well at the Galactica helium project in Las Animas County, Colorado. The well demonstrated strong reservoir flow, increasing to 190 Mcfd since reaching total depth (TD). Projections indicate stabilized flow rates between 250 to 350 Mcfd, optimized for production, with a maximum potential of 450 Mcfd. Early gas samples revealed helium concentrations up to 1.18% and CO2 at 85.93%, aligning with expectations. The Lyons sandstone was encountered at 1,198 feet, with wireline logs confirming its high quality and gas saturation. Strong pressure build-up post-testing suggests high permeability and good reservoir communication. The Jackson 4 well, located at the southern edge of the project, is expected to access higher CO2 and lower helium concentrations. Blue Star’s Managing Director & CEO, Trent Spry, expressed satisfaction with the results, citing further confirmation of helium and CO2 resources and the impressive deliverability of the Lyons reservoir. He also highlighted that the raw gas composition aligns with the geologic model, boosting confidence in future targeted development wells. These high CO2 wells are critical for blending to maintain optimal plant throughput for beverage-grade CO2 production. Compared to the State 16 well, Jackson 4 has demonstrated a higher natural flow rate, attributed to greater permeability in the Lyons sand. Considering an independent engineering study and the higher natural flow at Jackson 4, the company projects stabilized flow rates, constrained for production optimization, between 250 and 350 Mscfd with a maximum potential rate of 450 Mscfd. BNL also released information regarding the Jackson 31 SENW 3054 helium development well which showed natural flow at up to 240 Mcfd through a 1.25” orifice plate.
