At least we got clean gas coming up so we are on track.. still...

At least we got clean gas coming up so we are on track.. still feeling they are in for the pump for the CR thus the "5 wells applied for " carrot.. I need to add it to the working sheet.

Quick summary of my GPT.

Latest Announcement Overview (4 June 2024)

Key Highlights:

• Significant Helium Discovery: Confirmed at the State 16 SWSE 3054 development well.
• Helium Concentration: Air corrected helium concentrations up to 1.90%, consistent with adjacent wells.
• Flow Rates: Peak flow rates reached 313 Mcfd, stabilizing at 285 Mcfd.
• CO2 Content: Approaching 70%, offering potential for significant revenue contribution.
• Development Plans: New OGDP filed for 5 additional development wells, and progress on helium processing plant site permitting.
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Comparison with Previous Announcements:

27 May 2024 Report:

• Drilling Completion: Successfully drilled to total depth, with wireline logs confirming gas presence.
• Flow Testing: Initial results indicated sustained natural flow rates and the necessity for larger compressors to increase sustainable flow rates.
• Economic Planning: Data from flow tests being analyzed for incorporation into development planning and economic models.

17 May 2024 Report:

• Drilling Projections: Outlined the projected timeline for drilling and testing operations.
• Voyager and Galactica Projects: Emphasis on progress and strategic shifts in capital allocation, with the Voyager project being re-evaluated.
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Prospects Moving Forward for Well Development:

1. State 16 Well Development:

   • Helium and CO2 Potential: The discovery of significant helium concentrations and high CO2 content opens avenues for dual revenue streams.
   • Flow Rates and Pressure: The stabilized flow rates and positive pressure test results indicate a robust reservoir with good permeability, crucial for sustained production.
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2. Expansion Plans:

   • New Wells: Filing for 5 additional development wells indicates an aggressive expansion strategy, leveraging the positive results from State 16.
   • Processing Facilities: Progress on helium processing plant site permitting is critical for scaling up production and ensuring efficient processing of extracted gases.
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3. Economic and Operational Models:

   • Data Integration: Continuous integration of testing data into development planning ensures informed decision-making and optimized resource allocation.
   • Independent Analysis: Ongoing evaluations by independent engineering consultants will refine flow rates and economic models, supporting strategic planning.
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4. Market and Commercialization:

   • Commercial Discussions: Ongoing negotiations with potential buyers for purified products underscore the market readiness and commercial viability of Blue Star’s helium projects.
   • Competitive Positioning: The comparison with the adjacent Red Rocks project highlights the competitive edge and commercial potential of the Galactica/Pegasus development.
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Conclusion:

The latest announcement builds on the previous updates by confirming significant helium discoveries and providing detailed flow test results. The strategic move to file for additional wells and progress on processing plant permitting indicates a clear path toward scaling up production. With the positive testing outcomes and ongoing commercial discussions, Blue Star Helium is well-positioned to capitalize on its high-grade helium resources, potentially leading to substantial revenue generation and market impact. The consistent alignment of development planning with testing data and economic models further strengthens the prospects for successful well development and commercialization.