BNL (ASX) Ann: Jackson 31 Flow Test and Gas Analysis Update

Originally posted by DGcruzing: ↑

Market Maestro gpt review.
Contextual Analysis of Jackson-31 Flow Test Update in Relation to Prior Findings
The Jackson-31 flow test and gas analysis update aligns well with the previous State-16 results and strengthens Blue Star Helium’s development strategy at the Galactica project. Here’s how it fits within our ongoing assessment:
1. Reservoir Validation and Increasing Helium Concentration Trends
Jackson-31 Helium Concentration:
Initial results show up to 2.2% helium (air corrected) and 1.90% (not air corrected).
Given recent equilibrated samples at State-16 (2.17% not air corrected), Jackson-31 is projected to contain 2.3% to 2.5% helium once fully equilibrated.
Consistency with State-16:
State-16 showed an increase in helium concentration from 1.65% to 2.17% over time.
If Jackson-31 follows the same trend, it could confirm a field-wide improvement in helium content, increasing potential revenue per Mcf.
2. Flow Rates and Commercial Viability
Natural Flow Rates at Jackson-31:
The well flowed naturally during drilling and at TD, indicating a good-quality reservoir.
Post-TD, the flow rate has increased to 250 Mcfd and is projected to stabilize at 300-400 Mcfd, with a max of 500 Mcfd.
Comparison to State-16 and Industry Standards:
State-16’s flow rates were 250-350 Mcfd with a max of 441 Mcfd, confirming strong reservoir connectivity.
The Red Rocks field, a neighboring commercial helium development, has similar flow characteristics, suggesting that Galactica/Pegasus could reach production-ready status soon.
3. Strategic and Market Implications
Production Timeline Acceleration:
Both Jackson-31 and State-16 are showing scalable and commercially viable helium production.
With helium content above 2% and flow rates in the 300-500 Mcfd range, the field is becoming de-risked for production expansion.
The company’s first production target for H1 2025 (June) now appears more feasible.
Potential Sales Contracts & Market Positioning:
Recent helium supply deals (e.g., First Helium, Renergen, and Linde Global) highlight market demand for stable helium sources.
These results improve Blue Star’s case for securing offtake agreements, possibly with gas distributors or tech companies reliant on helium.
Stronger flow and concentration levels could also make Blue Star a takeover or partnership target for larger industrial gas players.
4. Next Steps and Watchpoints
Equilibration Confirmation:
If Jackson-31’s helium concentration equilibrates above 2.3%, it confirms an upward trend across the field.
Additional Well Testing:
The next well, Jackson-04, could further validate field-wide consistency.
Other historic wells might also show increased helium content, requiring re-evaluation.
Offtake Agreement or Financing Moves:
If a helium sales contract or financing deal emerges, it could signal the final steps toward full-scale development.
Final Takeaway: The Trend is Positive, but Execution is Key
The higher helium concentration and strong flow rates at Jackson-31 align with prior results and indicate a commercially viable field. The upward trend in helium content is particularly promising, making Blue Star Helium’s production goal for 2025 more realistic.
The next critical milestone will be securing sales agreements or financing for full production. If that happens soon, investor sentiment and stock price movement could see further upside.

Expand

While taking the car through the car wash, threw this release into Grok #3 for a run on a version on the prompt.

Comparison of the Galactica Helium Project (Blue Star Helium) to the Red Rocks Helium- Grok 13.03.25
(not a lot of info to go too deep as Red Rocks is private.)

https://advancedcskills.notion.site/Comparison-of-the-Galactica-Helium-Project-Blue-Star-Helium-to-the-Red-Rocks-Helium-Grok-13-03-25-1b6d50fbce668018869fe43ba95f52c8

Remember, on these is NOT investment advice, and your take is from your DYOR

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