Blue Star Helium submits initial application for permit to drill Enterprise well

Blue Star Helium Ltd (ASX:BNL) (OTCMKTS:AZZEF) has submitted an initial application, through its wholly-owned subsidiary BNL (Enterprise) Inc, for a permit to drill the Enterprise 16#1 well in Colorado, USA.

The initial application was submitted to the Colorado Oil and Gas Conservation Commission (COGCC) and under the new regulatory process, the final permit to drill is expected to be received during the third quarter of 2021.

Following submission of this initial permit application, Blue Star is now equipped to undertake a rolling well-permitting strategy.

The company has been carrying out preparatory activities for further applications for some time and this work is expected to see the submission of initial applications for a further two wells during the current quarter.

Regulatory changes impact process

Blue Star managing director and CEO Trent Spry said: “We are pleased to have submitted the initial drilling application for Enterprise.

“The application process was impacted by recent regulatory changes to the State permitting process and recent executive orders from the Biden Administration that, while targeted at hydrocarbon drilling, still caused a degree of additional complexity and delay across applications for other drilling activities.

One of first to submit application

“Our understanding is that Blue Star is one of the first to have successfully submitted an initial drilling application in Colorado under the new permitting regimen.

“With our ability to navigate the initial application process now established, the opportunity ahead is for us to permit on an accelerated, rolling and multiple-option basis ahead of our planned drilling activities.

“This is the strategy we are adopting and we look forward to executing on it.”

Seeks to permit multiple locations

Following this initial phase, Blue Star will seek to permit multiple potential well locations across its various Las Animas prospects on a rolling basis.

This rolling permitting strategy is designed to give the company flexibility around well selection and allow a continuous drilling program with a substantial degree of embedded responsiveness to respective drilling outcomes.

Story by ProactiveInvestors