Blue Star Helium (ASX: BNL) has hit gas in its Jackson 29 development well at the Galactica helium project in Colorado and has now sent samples to a local laboratory to be assessed.
Precedence Research has estimated that the North American market – which is likely to face supply shortages in the near future – surpassed approximately $2.4 billion in 2024 and will grow at a compound annual rate of 6.85% from 2025 to 2034.
It is forecasting the global helium market to reach around US$12.1b by 2034, growing annually at a compound rate of 6.72% over the same period.
Chief executive officer Trent Spry said the results were a continuation of the company’s early development drilling success at Galactica.
” This continued success further verifies the strength of our Galactica project and marks a significant step towards commercial production,” Mr Spry said.
Jackson 29 encountered the targeted Lyons formation at a depth of 1,122ft and was completed deliberately 61ft into the Lyons formation’s upper sand, for a total depth of 1,183 feet drilled.
Mr Spry said the well produced strong natural flow during drilling and at total depth, in line with the recent observations from the Jackson 31 well, with wireline tests confirming that no water was encountered.
“Based on offset wells we expect the entire upper Lyons to be gas-saturated, as well as a significant portion of the lower Lyons sand,” Mr Spry said.
“This well targeted the highest quality sandstone at the top of the upper Lyons formation, which is well connected to the entire gas column
Blue Star’s contractors are now installing a wellhead to enable surface pressure readings, flow testing and further gas sampling.
If testing is successful, the company intends to complete the well so that it is ready to be tied in to production facilities.
Blue Star is developing the Galactica project via a joint venture with Helium One Global, which is funding the first $733,000 (US$450,000) of drilling costs at Jackson 29.
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