Blue Star Helium announced that the State 16 well drilled into the Galactica field in Las Animas, Colorado resulted in a significant discovery. The well encountered 96 feet of gas-filled, high quality sandstone in the Lyons formation at target depth, which indicates a strong and productive reservoir. The well flowed naturally during drilling and after the usual cleaning up process took place, returned drilling gas to surface before reservoir gas started flowing. The reservoir gas composition on an air-corrected basis was 1.9% helium, 69.6% CO2 and 28.5% nitrogen, which is in line with offset wells and BNL’s geologic model. Preliminary results indicate the well can sustain a natural flow rate of 150 Mcf/d at 5.5 psig, starting at 208 Mcf/d at 6.5 psig. This development is adjacent to the Red Rocks helium project which has been producing helium for over a year.
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