Can Blue Star Helium Sustain Strong Flows to Commercialize Galactica?
Blue Star Helium reports robust natural flow rates from its Jackson 2 well at the Galactica project, with helium concentrations nearing 78%, signaling strong reservoir potential in Colorado.
- Jackson 2 well natural flow rates exceed 250 Mcfd
- Projected stabilized production between 300-400 Mcfd, max 500 Mcfd
- Helium concentration in gas samples at 77.77%
- Independent analysis confirms high reservoir permeability
- Development underway with sixth well drilling under farm-in agreement
Strong Natural Flow Rates Confirm Reservoir Quality
Blue Star Helium Limited has announced encouraging results from the Jackson 2 well at its Galactica helium project in Las Animas County, Colorado. The well has demonstrated a natural flow rate exceeding 250 million cubic feet per day (Mcfd), with projections suggesting stabilized rates between 300 and 400 Mcfd, and a maximum potential of 500 Mcfd. These figures represent a significant step forward in validating the commercial viability of the Galactica reservoir.
Exceptional Helium Concentration Boosts Project Appeal
Gas analysis from early samples reveals an impressive helium concentration of 77.77%, accompanied by 20.61% carbon dioxide and minor nitrogen content. This high helium purity is a critical factor for the project's economics, as it reduces processing complexity and enhances product value. The composition aligns well with expectations for the Lyons Sandstone Formation, the geological target of the drilling campaign.
Independent Engineering Supports Strong Production Potential
An independent engineering study integrating data from Jackson 2 and adjacent wells confirms the reservoir's high permeability, ranging between 300 and 750 millidarcies. This permeability supports the observed strong natural flow rates and underpins the projected production plateau. The study also models stabilized flow constrained to optimize reservoir pressure and maximize recovery, reinforcing confidence in the field's development plan.
Advancing Development with New Drilling Activity
Building on this momentum, Blue Star Helium has commenced construction of the sixth well under a farm-in agreement with Helium Global. This strategic partnership aims to accelerate resource delineation and production ramp-up. Managing Director and CEO Trent Spry highlighted the importance of these results in refining the company’s development strategy and advancing the Galactica project towards commercial production.
Outlook and Market Implications
With helium demand rising globally, Blue Star Helium’s strong flow test results position the Galactica project as a promising new supply source. The combination of high flow rates, excellent helium concentration, and robust reservoir characteristics could translate into attractive economics. However, ongoing drilling results and sustained production performance will be critical to confirming the project's full potential.
Bottom Line?
Blue Star Helium’s Jackson 2 well results mark a pivotal step, but sustained production and further drilling will define the project’s commercial future.
Questions in the middle?
- Will the high helium concentration sustain over longer production periods?
- How will the sixth well’s results impact overall project economics?
- What are the timelines and capital requirements for full-scale development?
