Jackson 2 Success Advances Galactica Project but Key Tests Pending
Blue Star Helium has successfully drilled the Jackson 2 well to total depth at its Galactica project in Colorado, confirming strong natural gas flow and advancing the project toward commercial production.
- Jackson 2 well drilled to total depth with gas confirmed
- Strong natural flow observed from Lyons Formation sandstone
- Samples sent for helium and CO2 concentration analysis
- Wellhead installed; flow testing and pressure readings underway
- Next drilling rig mobilizing to new well site under farm-in agreement
Successful Drilling Milestone at Galactica
Blue Star Helium Limited (ASX:BNL) has announced a significant operational milestone with the successful drilling of its Jackson 2 well to total depth at the Galactica helium project in Animas County, Colorado. The well encountered the Lyons Formation at approximately 1,159 feet and was drilled to a total depth of 1,232 feet, confirming the presence of gas through natural flow during drilling and wireline logging.
The Lyons Formation is a key target for Blue Star, known for its high-quality sandstone reservoirs saturated with helium-rich gas. The Jackson 2 well flowed naturally during drilling, an encouraging sign that the formation is well connected to a substantial gas column. Importantly, no water was encountered in the targeted sandstone, which bodes well for future production potential.
Advancing Toward Commercial Production
Following the drilling success, Blue Star has installed the wellhead and dispatched early gas samples to laboratories for detailed analysis of helium and CO2 concentrations. These results will be critical in assessing the commercial viability of the resource. Surface pressure readings and flow testing are currently underway, with the company anticipating that, upon successful testing, the well will be completed and tied into production facilities.
Managing Director and CEO Trent Spry highlighted the significance of this achievement, noting that Jackson 2 reinforces the robustness of the Galactica project and represents a substantial step forward in the company’s development campaign. The drilling success has also triggered the decision to proceed with the sixth well under the ongoing farm-in and integration agreement with Helium One Global Ltd.
Strategic Partnership and Next Steps
Under the farm-in agreement, Helium One Global Ltd is funding the first US$450,000 of the well costs, underscoring the collaborative approach to advancing the Galactica project. The drilling rig is scheduled to move next to the State 9 SWSE 3054 well location, where pad construction is already underway, continuing the company’s aggressive exploration and development program.
Blue Star’s focus remains on unlocking new helium supplies, a critical industrial gas with growing demand across high-tech sectors such as semiconductors, fiber optics, and medical imaging. The Jackson 2 well’s promising early results add momentum to Blue Star’s strategy of developing low-cost, high-grade helium resources in North America.
Bottom Line?
Jackson 2’s strong gas flow sets the stage for critical testing that will determine Blue Star’s next production milestones.
Questions in the middle?
- What will the helium and CO2 concentration analyses reveal about resource quality?
- How will flow testing results impact the timeline for commercial production?
- What are the terms and implications of the farm-in agreement with Helium One Global Ltd?
