Big Star grows helium position ahead of 2020 drill program
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Special Report: Big Star has once again expanded its helium lease position in Colorado after raising funds through a successful share placement.
With more funding from a successful share placement and yet more helium leases tucked away in its portfolio, Big Star Energy (ASX:BNL) is well positioned to kick off its planned work program in 2020.
The company has just added a further 5,440 net acres, taking its total lease position up to 50,692 net acres within a broader position of 92,443 gross acres.
Gross acres is the amount of land leased by the company. The company’s current economic interest in those gross acres is expressed as its net acres
Earlier this week, the company received subscriptions for 146.75 million shares priced at 0.6c each to raise just over $880,000.
Proceeds from this share placement will be used to expand its existing acreage position and further its helium exploration program.
“As we continue to consolidate our lease position and with a strongly supported capital raise completed, I look forward to an active new year’s work program,” managing director Joanne Kendrick said.
Big Star previously flagged that it would carry out a three-to-five well drill program in the second quarter of 2020.
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.
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