Here's why the Blue Star Helium (ASX:BNL) share price is rocketing 19%

Helium could become a major global energy source in the 21st century.

A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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%.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today
Energy Shares

Looking for opportunity? This sector has fallen the furthest in 2025

Whilst the ASX 200 has largely rebounded from a turbulent start to the year, this sector is yet to recover. 

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

The Coronado Global share price just surged to a 114% weekly gain. Here's why

Investors have sent the ASX coal stock flying higher in June. But why?

Read more »

Worker inspecting oil and gas pipeline.
Dividend Investing

Should I buy Woodside shares today for their 8% dividend yield?

With an 8% dividend yield and a resurgent share price, should I buy Woodside shares right now?

Read more »

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Energy Shares

4 reasons to buy Santos shares right now

A leading expert forecasts Santos shares and dividends are set to grow. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX 200 stock has rocketed 86% since April?

This sky rocketing ASX 200 stock continues to defy short sellers. But how?

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

4 ASX 200 energy shares making big moves today as OPEC's oil production set to surge

ASX energy shares, including Woodside and Santos, are making big moves today. But not all in the same direction.

Read more »