Mula Well Flow Test Sustains 3,000 Mcfd with 1.41% Helium Concentration
Blue Star Helium has completed flow testing at its Mula well in Colorado, revealing robust gas flow rates and a helium concentration above regional norms, bolstering the asset’s commercial promise.
- Mula well flow test sustained at 3,000 Mcfd with minimal pressure drop
- Open Flow Absolute Hole model estimates up to 9,000 Mcfd, with prior instantaneous tests hitting 15,000 Mcfd
- Helium concentration measured at 1.41%, notable for the Lincoln County area
- Test data integrated into economic models to guide development and production decisions
- Ongoing testing campaign supports Blue Star Helium’s strategic expansion in Colorado
Robust Flow Testing at Mula Well
Blue Star Helium Limited (ASX – BNL) has announced the completion of flow testing at its Mula well, located at the Aloha 12 site in Lincoln County, Colorado. The test demonstrated a sustained constrained gas flow rate of 3,000 thousand cubic feet per day (Mcfd) with negligible pressure drawdown, indicating strong reservoir performance and permeability.
Modelled estimates of the well’s Open Flow Absolute Hole (AOF) rate stand at 9,000 Mcfd, while previous instantaneous tests reported flows as high as 15,000 Mcfd. These figures suggest the well has significant production potential, particularly given the minimal pressure loss during testing.
High Helium Concentration Enhances Commercial Appeal
Gas analysis from the flow test revealed a helium concentration of 1.41%, which is considered high for this region. This elevated helium content, combined with the strong flow rates, reinforces the commercial viability of the Mula well and the broader Lincoln County asset portfolio.
The gas composition also includes significant nitrogen and methane components, typical of the area’s natural gas mix. The helium-rich gas stream positions Blue Star Helium well within the competitive landscape of North American helium producers.
Strategic Development and Economic Integration
Blue Star Helium is integrating the flow test data into its economic and development models to refine production profiles and estimate ultimate recoverable helium volumes. This approach will help prioritize development decisions and optimize the commercialisation of the Lincoln County assets.
The Mula well testing is part of a broader campaign that includes ongoing tests at other wells such as Wampum 4. These efforts align with Blue Star Helium’s strategic acquisition of helium assets in Colorado, aimed at expanding its resource base and leveraging existing infrastructure like the Tumbleweed gathering system and Ladder Creek processing facility.
Outlook and Industry Interest
Blue Star Helium’s Managing Director and CEO, Trent Spry, highlighted the strong performance of the Mula well as a key milestone in the company’s development campaign. The company is also engaging with other industry participants interested in joining the project, reflecting growing market interest in helium as a critical industrial gas.
With helium’s unique applications in high-tech industries such as semiconductors, optics, and medical imaging, Blue Star Helium’s progress in Colorado positions it to capitalize on rising demand and supply constraints in the global helium market.
Bottom Line?
Blue Star Helium’s strong Mula well results mark a pivotal step toward unlocking the commercial potential of its Colorado helium assets.
Questions in the middle?
- How will ongoing flow tests at other wells impact Blue Star Helium’s production forecasts?
- What are the next steps for development and infrastructure investment in Lincoln County?
- How might helium market dynamics influence Blue Star Helium’s strategic decisions moving forward?