Big Star continues to increase helium footprint
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Special Report: Big Star has picked up more helium leases, one of which includes an elevated helium sample taken during its earlier regional gas survey.
Big Star Energy (ASX:BNL) has leased a further 1640 net acres of helium prospective land in Colorado, taking its total foot print up to 92,443 gross (39,811 net) acres.
“We are rapidly extending and consolidating our leasing coverage of the Enterprise prospect where we are targeting our exploration efforts on the Lyons Sandstone which is pervasive in the region and has previously produced helium in Las Animas County,” managing director Joanne Kendrick said.
“We are also pleased to have acquired a lease in our Prometheus prospect which includes an elevated helium sample taken during our regional gas survey. We will continue to consolidate our leasing position at Enterprise and our other prospects.”
The Company’s large acreage position is located in Las Animas County Colorado. The county has a history of helium production dating back to the 1920’s when the Model Dome helium field was produced for a short period. This field, at 8%, is one of the top-4 highest helium concentrations to have been produced in the USA. It was subsequently acquired by the US Government and held as part of its strategic helium reserve.
Helium is in short supply despite being a critical component in modern technology applications such as for magnetic resonance imaging machines and in nuclear medicine.
This has resulted in helium prices rising over the past decade to over 100 times the price of natural gas in the US.
And with the US federal reserve set to shut down completely by 2021, new sources of helium will have little difficulty finding eager buyers.