Big Star Energy expands into new helium leases at Enterprise
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Special Report: Big Star Energy has secured two additional leases at its Enterprise helium prospect in the USA.
The two leases cover five helium anomalies detected in the company’s recent soil gas survey and takes the total area under lease to 5,120 acres, which is above the company’s near-term strategic objective of securing 5,000 gross acres.
Big Star Energy (ASX:BNL) said all five anomalies returned positive results that ranged from between 10 per cent and 21 per cent above normal atmospheric levels.
This is consistent with soil gas results from third-party helium projects producing in the US.
Helium is a critical component in modern technology applications, from telecommunications to nuclear power stations, and demand has already outstripped supply.
The new leases are for an initial term of five years with an option to renew for a further five years and a 12.5 per cent royalty.
“The statutory pooling rules mean Big Star has the ability to undertake a drilling program in its gross leased acreage.
“Big Star is targeting having several prospects ready for drilling permitting in 1Q2020.
“Our ongoing leasing program is gathering momentum and we will now focus on building our leasehold position at Enterprise by in-fill leasing and step-out leasing.”
Earlier this month, Big Star indicated that its Enterprise prospect could be larger than originally mapped.