Blue Star Helium advances Jackson 31 well as Galactica Project shows strong production potential

Blue Star Helium Limited has reported positive initial flow test results from its Jackson 31 well, a key asset within the Galactica Project in Las Animas County, Colorado. The findings underscore the well’s potential to deliver commercially viable helium production, with natural flow rates steadily increasing and helium concentrations reaching promising levels. With the global helium market experiencing sustained supply constraints, these results bolster confidence in Blue Star Helium’s ability to establish itself as a significant North American supplier of this critical industrial gas.

What Do the Flow Test Results at Jackson 31 Indicate?

The Jackson 31 well was drilled to a total depth (TD) of 1,210 feet, encountering the Lyons Formation at 1,153 feet. Well logs confirmed high-quality, gas-saturated sandstone, and drilling operations did not encounter water, a key indicator of reservoir integrity. Natural gas flow was evident during drilling and at TD, leading to extensive flow testing to assess production potential.

Initial tests demonstrated a natural flow rate of approximately 250 Mcfd, with pressure build-up post-testing confirming high permeability and strong reservoir communication. These results align with prior engineering analyses conducted across the Galactica Project area, supporting projections that the stabilised flow rate could range between 300 and 400 Mcfd, with a maximum potential of 500 Mcfd.

Comparisons with the nearby Red Rocks development, a commercially producing helium project, further validate the production outlook at Jackson 31. By leveraging proven extraction methods used in similar reservoirs, Blue Star Helium is well-positioned to optimise recovery and maximise long-term output.

How Significant Is the Helium Concentration at Jackson 31?

Gas sample analysis revealed a helium concentration of up to 2.2% (air corrected), while unadjusted figures reached 1.90%. When benchmarked against recent equilibrated State 16 well samples, which recorded 2.17% helium (not air corrected), the reservoir’s helium content at Jackson 31 is expected to stabilise between 2.3% and 2.5%.

These concentration levels are notable within the global helium extraction industry, where helium is typically found as a by-product of natural gas reservoirs. The Galactica Project’s helium purity suggests that Blue Star Helium’s assets could offer a sustainable, high-quality supply source amid growing demand from sectors such as semiconductors, medical imaging, space exploration, and fibre optics.

How Does Jackson 31 Compare to Other Wells in the Galactica Project?

The Galactica/Pegasus project has been the focus of ongoing helium exploration and evaluation efforts, incorporating data from multiple wells, including State 16 and the JXSN discovery wells. Independent engineering studies indicate that permeabilities in these wells range from 300 to 750 mD, supporting initial flow rate estimates of 334 to 780 Mscfd under optimal conditions.

The State 16 well, which recorded a natural flow rate of 150 Mscfd, serves as a useful comparison. With higher permeability in the Lyons Sandstone at Jackson 31, initial results suggest that this well could deliver substantially improved production rates. The consistency of these findings across the Galactica Project enhances confidence in regional resource distribution and scalability.

What Are the Next Steps for Blue Star Helium?

With Jackson 31 confirming strong helium flow rates and favourable reservoir properties, Blue Star Helium is moving forward with development planning. The company holds a 50% working interest in the well, operating under a private mineral lease spanning 4,895 acres. Future operational strategies will focus on optimising production through methods such as vacuum compression, which has been shown to enhance recovery efficiency in comparable helium reservoirs.

In the broader context of the helium supply chain, Blue Star Helium’s findings arrive at a critical time for the industry. Helium shortages have created price volatility and supply risks, particularly as major producers in North America, the Middle East, and Russia face constraints in scaling production. As industries reliant on helium—such as medical technology, aerospace, and scientific research—seek stable supply sources, projects like Galactica stand to benefit from favourable market dynamics.

What Does This Mean for the Helium Market?

Helium’s role as a non-renewable industrial gas has made supply security a pressing concern for manufacturers and research institutions worldwide. Unlike hydrocarbons, helium is a finite resource formed over millions of years, and its extraction depends on discovering high-concentration reservoirs with commercially viable recovery rates.

The Galactica Project’s helium potential adds to the growing interest in dedicated helium exploration, rather than reliance on by-product extraction from natural gas fields. With strategic investment in helium-specific developments, Blue Star Helium is aligning itself with a long-term industry shift toward independent helium sourcing.

Could Blue Star Helium Become a Key Player in North American Helium Production?

As helium demand continues to rise, the success of Jackson 31 and future wells in the Galactica Project could position Blue Star Helium as a significant producer in North America. The company’s strategy of developing independent helium resources aligns with market trends favouring secure, domestic supply chains for critical industrial materials.

By demonstrating consistent helium concentrations, increasing flow rates, and strong reservoir permeability, Blue Star Helium is making tangible progress toward commercial production. With further drilling and flow optimisation, the company could establish a scalable helium extraction operation, contributing to a more stable supply environment for high-tech and medical industries.

As Blue Star Helium moves into the next phase of its development strategy, industry observers will be watching closely for further operational updates and production milestones that could shape the company’s future trajectory.