Significant Expansion at Galactica/Pegasus Project
Blue Star Helium Limited has received permits from the Colorado Energy and Carbon Management Commission (ECMC) to drill five additional helium development wells at its Galactica/Pegasus project in Las Animas County, Colorado. This approval represents a pivotal step in the company's development strategy.
Strengthening Initial Gas Gathering Plans
The newly approved wells, along with the previously drilled and suspended State 16 well, are expected to contribute to the initial gas gathering system for the Galactica helium production facility. Blue Star plans to commence drilling operations for these wells within the fourth quarter of 2024, marking a critical advancement in project execution.
Strategic Developments in Helium Exploration
The approval extends Blue Star’s inventory to 15 helium development well locations at Galactica/Pegasus. Among these, eight wells, including the recently approved ones, are ready for immediate drilling. The strategic placement of the wells aligns with the company’s broader objectives of optimizing production capacity.
Proven Potential of State 16 Well
The State 16 well, drilled earlier in 2024, showcased significant helium reserves. Independent assessments reported stabilised production rates ranging from 250 Mscfd to 350 Mscfd, with helium content at 1.9% and a confirmed gas column of over 96 feet in the Lyons Sandstone. This sets a strong foundation for the newly approved drilling initiatives.
Successful Discoveries and Regional Synergy
Previous exploration at Galactica and Pegasus revealed gas-bearing columns of up to 230 feet and helium concentrations as high as 6% in four wells. The nearby Red Rocks helium project, which utilizes an operational helium recovery plant, underscores the favorable regional dynamics that support Blue Star’s prospects.
Collaboration with Helium One Global
Blue Star recently finalized a landmark Farm-in Agreement with Helium One Global Ltd, strengthening its capacity to develop the Galactica helium production facility. This collaboration aligns with the company’s goal of scaling operations while leveraging technological expertise and market access.
Helium’s Strategic Importance
As a critical resource for industries ranging from healthcare to technology, helium remains an irreplaceable element for applications like MRI manufacturing, semiconductors, and space exploration. Blue Star Helium’s commitment to securing sustainable helium supplies positions the company as a key player in addressing growing global demand.
A Step Forward in Sustainable Energy Solutions
With the approval of these additional wells, Blue Star Helium reinforces its dedication to pioneering sustainable and cost-effective helium production in North America. The company’s ongoing efforts underscore its leadership in tapping into strategic reserves of this high-tech industrial gas.
