Big Star bulks up helium acreage, lays groundwork for drill program
Special Report: Big Star has locked up more acreage over key helium prospects as it progresses well location selection, drill planning and prospective resource estimation.
New leases secured at a state land auction (22 leases) and from private owners (eight leases) have increased the company’s acreage by 17,612 gross acres, or nearly 20 per cent, to 110,055 gross acres.
With the new acquisitions, Big Star Energy (ASX:BNL) now has leased acreage covering 15 soil gas sample locations that returned helium readings significantly above atmospheric concentrations.
All samples were obtained during the regional gas survey carried out last year.
Helium is already in short supply and will become increasingly rare once the US Strategic Helium Reserve shuts in 2021.
With demand coming from modern technology applications such as for magnetic resonance imaging machines and in nuclear medicine, helium producers will have little difficulty finding customers for their gas.
“I’m delighted by our success at the recent state auction where we saw an increase in competition for leases, supporting our opinion of the prospectivity in the area and specifically at the Enterprise location,” managing director Joanne Kendrick said.
“Our leasing program will continue this quarter with a focus on increasing net acreage over key prospects. At the same time, we are working on well location selection, drilling planning and prospective resource estimation.”
>> Now watch: 90 Seconds With… Joanne Kendrick, Big Star Energy