Helium Ventures Plc Investment Update: Blue Star Helium Limited

 
TIDMHEV 
 
Helium Ventures plc 
 
                     ("Helium Ventures" or the "Company") 
 
                  Investment Update: Blue Star Helium Limited 
 
Helium Ventures plc (AQSE:HEV), a special purpose acquisition vehicle focused 
on investments in helium related assets, announces that its maiden investment, 
ASX listed Blue Star Helium Limited ("Blue Star"), has today issued an update 
on its water well programme in Las Animas County Colorado, stating a high 
concentration of 8.8% helium in its Voyager prospect water well. 
 
The full announcement from Blue Star can be viewed via the following link and 
in the appendix below: 
 
https://www.bluestarhelium.com/wp-content/uploads/2021/11/61063130.pdf 
 
Neil Ritson, Chairman of Helium Ventures commented: 
 
"We invested in Blue Star to gain exposure to an immediate and exciting drill 
programme and the results from the Voyager prospect are certainly highly 
encouraging." 
 
Helium Ventures holds 7,142,858 ordinary shares in Blue Star. 
 
The Directors of the Company accept responsibility for the contents of this 
announcement.S 
 
 
Enquiries: 
 
Helium Ventures plc 
 
Neil Ritson                                 +44 (0) 20 3475 6834 
 
Vigo Consulting (Investor Relations) 
 
Ben Simons                                  +44 (0) 20 7390 0230 
 
Oliver Clark 
 
Cairn Financial Advisers LLP (AQSE 
Corporate Adviser) 
 
Liam Murray                                 +44 (0) 20 72130 880 
 
Ludovico Lazzaretti 
 
 
For more information please visit: www.heliumvs.com 
 
Appendix 
 
A copy of the announcement released by Blue Star has been inserted below, 
without material change. 
 
"HIGH CONCENTRATION OF 8.8% HELIUM IN VOYAGER PROSPECT WATER WELL 
 
Blue Star Helium Limited (ASX:BNL) (Blue Star or the Company) is pleased to 
provide an update on the water well program in Las Animas County, Colorado. 
 
Drilling of the BBB#1 water well has been completed by the ranch owner. The 
water well is located within Blue Star's Voyager prospect and approximately six 
miles north of the historic Model Dome helium field which produced raw gas with 
an average helium content of 8%. Data collected during the drilling of this 
water well included continuous gas logging and sampling, mudlogging and 
geologic sampling, and wireline logs. 
 
Analysis of this data has confirmed intersection of the top of the Lyons 
formation at 888 feet depth, with wireline logs confirming a gas column in high 
quality reservoir from the top of the Lyons formation to a depth of 922 feet 
(which was also the achieved logged total depth (TD) of the well). The well 
TD'ed in gas in the Lyons reservoir and no gas-water contact was observed on 
the logs, meaning the gas column is greater than observed. 
 
Gas analysis of samples obtained while drilling has resulted in a calculated 
air-free gas composition from the Lyons formation in BBB#1 of 8.8% helium (He), 
78.7% nitrogen (N) and 12.5% carbon dioxide (CO2). This composition is very 
similar to the average historic Model Dome analogue production. It also 
represents one of the highest in-situ helium concentrations found both in the 
United States and globally. 
 
BBB#1 will not be completed as a water well as it did not encounter material 
water to TD. Blue Star is evaluating the funding of an additional water well 
for the rancher on the same terms. Blue Star 
 
Managing Director and CEO, Trent Spry, commented: 
 
"The whole Blue Star team is incredibly proud of this result. Historic wells in 
the Voyager area were reported as dry holes, and plugged and abandoned, however 
our interpretation was that gas had been missed. This result proves that gas is 
trapped in the Voyager prospect and is a strong validation of that 
interpretation and our prospect mapping. Encouragingly we have also interpreted 
gas from historic well data in the Argo, Galactica and Pegasus prospects, which 
we have yet to confirm with new drilling activity and data. 
 
"We have improved the water well gas sampling protocol from that utilised at 
Hill#2. The new  protocol has allowed less diluted samples to be collected and 
enabled air-free gas calculations to  be performed at BBB#1, which we were 
unable to do at Hill#2. 
 
"The air-free calculated helium content from gas sampled while drilling BBB#1 
has confirmed helium concentrations in the order of those reported from 
historic production from the Model Dome field analogue. This is further, modern 
evidence that the area contains some of the highest helium concentrations in 
the United States and globally - a dynamic which drew us to Las Animas County 
and has us excited about the targeted commercialisation pathway ahead for Blue 
Star." 
 
Voyager prospect 
 
BBB#1 is located within Blue Star's Voyager prospect and approximately six 
miles north from the historic Model Dome field. The Voyager prospect is 
associated with a dome feature mapped in the area around Thatcher in Las Animas 
County, Colorado. Thatcher was the historic location for the helium processing 
facility that treated gas from the Model Dome field. Historic wells drilled on 
the Thatcher Dome structure in the 1920's and 1930's were reported as dry holes 
and plugged and abandoned. Unearthing of old well data and reinterpretation by 
Blue Star resulted in the proposition that gas had been missed in the Thatcher 
Dome area and the Voyager prospect was mapped defining the associated 
prospective resources. 
 
No prospective resources associated with the Voyager prospect have been 
reported by Blue Star. Any prospective resources at Voyager would be in 
addition to the Company's stated prospective helium resources of 13.4 BCF 
associated with the Enterprise, Galileo, Argo, Galactica and Pegasus prospects. 
 
Water well drilling program 
 
As previously advised, Blue Star agreed to fund the drilling of three water 
wells for local ranch holders (see BNL ASX releases dated 29 July 2021, 10 
September 2021, 30 September 2021 and 20 October 2021). In the process of 
drilling these wells, Blue Star is seeking to gather data from the wells that 
might aid in the further definition of its helium prospects. The wells are 
drilled and owned by the ranchers and Blue Star does not have any interest in 
them. However, the Company does own a mineral lease interest at each of the 
well locations. 
 
Water wells are drilled differently to the method the Company expects to use to 
drill dedicated helium gas wells (particularly given the low-pressure nature of 
the Lyons formation). The water wells are air drilled with increasing pressure 
and if significant water is encountered assisted, if required, by foam to lift 
the cuttings. The result is that any formation gas in the return gas is highly 
diluted by air. Additionally, water wells cannot be conventionally tested. 
 
Hill #1 
 
The drilling of the first of these water wells (Hill#1) (associated with the 
Galileo prospect)  commenced during the June 2021 quarter, however it remains 
incomplete. Significant shallow water was encountered, which required the 
delivery of additional equipment to complete drilling to target depth (see BNL 
ASX release dated 29 July 2021). There have been ongoing delays in the delivery 
of this equipment, which remains pending. However, and as also previously 
reported, the initial data obtained to current depth from this well supports 
the Company's stratigraphic interpretation of the area around its Galileo 
prospect. 
 
Hill#2 
 
The drilling of the second water well (Hill#2), which was associated with Blue 
Star's Enterprise prospect, was completed during October. Neutron and density 
wireline logs run in the well show approximately 26 feet of gas effect at the 
top of the high-quality Lyons formation, with a free water level interpreted in 
the well at the base of the gas effect. The resistivity logs across the gas 
effected part of the Lyons formation suggest a transition zone above the free 
water level. The composition of the free gas in the Lyons formation could not 
be determined because of the nature of the water well configuration (see BNL 
ASX release dated 20 October 2021). This drilling and sampling protocol was 
revised and the new protocol used on BBB#1. 
 
The Hill#2 water well was located approximately 1.5 miles to the north-east, 
and interpreted to be down dip from, Blue Star's planned Enterprise 16#1 helium 
exploration well. Blue Star expects to receive the approved final permit to 
drill the Enterprise 16#1 well during Q4 2021 and to commence drilling the well 
promptly thereafter. 
 
BBB#1 well details 
 
The BBB#1 well was drilled and is owned by the rancher and Blue Star does not 
have any interest in it. The rancher agreed to permit Blue Star to collect data 
in consideration of it agreeing to fund the rancher's drilling cost which was 
not material. 
 
The BBB#1 water well is located in Township 28 Range 60 Section 33. The 
minerals are the subject of two mineral leases entered into between Las Animas 
Leasing Inc (LAL) and private mineral owners. The first lease has an effective 
date of 14 June 2021, the total area of the lease is 2,644 gross acres, the 
term is 5 years from the effective date, the rental was paid in advance, the 
royalty is 15% and LAL's working interest in the lease is 100%. The second 
lease has an effective date of 2 July 2021, the total area of the lease is 
1,552 gross acres, the term is 5 years from the effective date, the rental was 
paid in advance, the royalty is 12.5% and LAL's working interest in the lease 
is 100%. 
 
The BBB#1 water well was not conventionally tested. The Company ran a suite of 
logs including gamma ray, resistivity (induction), micro log, density and 
neutron logs. 
 
Gas analysis of samples obtained while drilling was performed using mass 
spectrometry. An estimated air-free gas composition from the Lyons formation in 
BBB#1 of 8.8% helium (He), 78.7% nitrogen (N) and 12.5% carbon dioxide (CO2) 
has been calculated after backing out air. 
 
The miniRuedi mass spectrometer was operated by Geochemical Insight. The

instrument was calibrated with a certified air standard comprised of 0.000524% 
He, 0.934% Ar, 0.05% CH4, 0.2% CO2, 20.95% O2 in a nitrogen (77.87%) balance. 
The standard was prepared and certified by Global Calibration Gases, LLC out of 
Sarasota, Florida, USA." 
 
 
 
END

(END) Dow Jones Newswires

November 17, 2021 05:32 ET (10:32 GMT)

Helium Ventures (AQSE:HEV)
Historical Stock Chart
From May 2024 to Jun 2024