Blue Star Helium updates market on Sammons drilling progress

Sammons is just one of four approved helium wells in an area of mutual interest between Blue Star, Prospero Oil and Gas and operator Vecta Oil and Gas.

Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has updated the market on drilling activity at 50%-owned Sammons 315310C well in Colorado, which is currently sitting around 425 feet deep.

The helium well, which is being drilled by joint venture partner Vecta Oil & Gas Ltd, was recently hampered by some unexpected rig issues that have since been resolved.

Thanks to the quick fix, drilling continues at Sammons, and Blue Star says it will update the market once the hole’s shallow section is complete.

From here, the drill team can target the Lyons formation — a development said to be structurally similar to helium wells drilled at Galactica and Pegasus to the north and estimated to be at around 1,285 feet in measured depth.

Essentially, the Sammons well is planned to total depth in the gas-bearing Lyons reservoir, which will maximise production if drilling is successful.

On the financial side, dry-hole drilling at Sammons is poised to cost US$150,000, net to Blue Star.

Big-picture, Sammons is just one of four approved helium wells in an area of mutual interest between Blue Star, Prospero Oil and Gas and operator Vecta Oil and Gas.