The Blue Star Helium Ltd (ASX: BNL) share price is rocketing in morning trade, up 19% to 6.3 cents per share.
Below we take a look at the water well update that appears to be stoking ASX investor interest in the helium exploration and production company.
What water well update was announced?
The Blue Star Helium share price is off to the races today after the company reported promising helium concentration results following the completion of drilling at its BBB#1 water well by the ranch owner.
The BBB#1 water well is located in Blue Star's Voyager prospect in the US state of Colorado. The company highlights that it's just 6 miles (9.6 kilometres) from the historic Model Dome helium field.
Analysis of gas obtained during drilling looks to be giving the Blue Star Helium share price a healthy boost today. That analysis showed a "calculated air-free gas composition of 8.8% helium" in the Lyons formation.
According to the company that's a comparable gas composition to the Model Dome production, and amongst the highest helium concentrations in the world.
Commenting on the results, Blue Star's CEO Trent Spry said:
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…
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.
Blue Star Helium share price snapshot
The Blue Star Helium share price is up 55% in 2021. That compares to a year-to-date gain of 11% posted by the All Ordinaries Index (ASX: XAO).
Over the past months, Blue Star Helium shares have gained 3%.
