Blue Star Helium’s Jackson 29 Well Delivers Strongest Flow and Highest Helium Grade Yet
Blue Star Helium reports robust natural flow rates and peak helium concentrations from its Jackson 29 well at the Galactica project, underscoring the site’s promising helium resource potential.
- Jackson 29 well achieves natural flow rates exceeding 320 Mcfd
- Projected stabilized flow rates between 350 to 450 Mcfd, max potential 550 Mcfd
- Helium concentration peaks at 3.30%, highest in current drilling campaign
- High permeability Lyons Formation sandstone confirmed with no water encountered
- Results compare favorably to previous wells, supporting strong reservoir quality
Jackson 29 Well Flow Test Breakthrough
Blue Star Helium Limited (ASX:BNL) has unveiled compelling initial flow test results from its Jackson 29 helium development well, part of the Galactica project in Las Animas County, Colorado. The well, drilled to a total depth of 1,183 feet within the Lyons Formation, demonstrated natural gas flow during drilling and at total depth, with flow rates increasing to over 320 thousand cubic feet per day (Mcfd).
This performance marks the strongest flow rate observed in Blue Star’s current drilling campaign, a significant milestone that CEO Trent Spry highlighted as validating the high-quality helium resource potential of the site. Early gas samples from Jackson 29 revealed helium concentrations reaching up to 3.30%, the highest recorded so far in this phase of exploration.
Reservoir Quality and Production Potential
Wireline logs confirmed the Lyons sandstone encountered is both high-quality and gas saturated, with no water detected during drilling. The well’s strong pressure build-up after flow testing indicates excellent permeability and reservoir communication, essential factors for sustained production.
Based on an independent engineering study integrating data from Jackson 29 and previous wells, including State 16 and multiple JXSN discovery wells, the projected stabilized flow rates for Jackson 29 are expected to range between 350 and 450 Mcfd, with a maximum potential rate around 550 Mcfd. These rates are constrained to optimise production and reservoir longevity, reflecting industry best practices for gas development.
Comparative Context and Strategic Implications
Jackson 29’s natural flow rate of approximately 320 Mcfd compares favorably to the State 16 well’s sustained natural flow of 150 Mcfd, underscoring the superior permeability of the Lyons Formation at this location. The engineering analysis suggests permeability values between 300 and 750 millidarcies (mD) across the project, with Jackson 29 likely at the higher end of this spectrum.
These findings reinforce Blue Star’s strategic positioning in the helium market, where supply constraints and rising demand have heightened interest in new, high-quality helium sources. The Galactica project’s promising flow rates and helium grades could accelerate Blue Star’s development timeline and enhance its commercial viability.
Next Steps and Market Watch
While these initial results are encouraging, the company will need to confirm stabilized flow rates over extended testing periods and integrate these data into broader development and economic models. The impact of vacuum compression techniques on flow optimization will also be a key area of focus moving forward.
Investors and analysts will be watching closely for updates on production ramp-up plans, potential capital expenditure, and how these technical results translate into commercial helium output in the coming quarters.
Bottom Line?
Jackson 29’s strong flow and helium content set a high bar for Galactica’s development, but sustained performance will be the true test.
Questions in the middle?
- Will Jackson 29 maintain its projected stabilized flow rates over longer-term testing?
- How will Blue Star integrate vacuum compression to optimize production and reservoir management?
- What are the timelines and capital requirements for moving Galactica into commercial helium production?