Blue Star Helium (ASX:BNL) spudded the Jackson 4 L4 3154 development well at its Galactica helium project in Colorado, according to a Wednesday filing with the Australian bourse.
The shallow conductor section is set, and blowout preventers are being installed and tested for drilling through the intermediate hole section, the filing said.
Wireline logging and flow and pressure readings will be conducted at total depth to estimate the well's production potential, based on existing field data and public information from the nearby Red Rocks development, per the filing.
Shares rose nearly 17% in afternoon trade Wednesday.
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