Big Star is building a big helium lease position at Enterprise
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Special Report: Big Star Energy continues to put together a significant helium land position in the US with the acquisition of additional leases at its Enterprise prospect.
The company has leased an additional 300 net acres, taking the total area under lease at Enterprise up to 5120 gross and 1310 net acres.
Enterprise is located in the Four Corners States area and is updip and within 15 miles of a field that produced high-grade helium in concentrations between 5 per cent and 10 per cent.
The prospect features good local infrastructure and shallow target horizons.
Big Star Energy (ASX:BNL) said 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 on any future production. The leases have no minimum work commitment.
In September, the company picking up two leases covering five helium anomalies. These anomalies have returned positive soil gas 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 that are already 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.
Earlier this week, the company raised nearly $587,000 through a placement of shares priced at 0.5 cents each to fund its helium acreage leasing and exploration programs.
Big Star is now fully funded to meet its objective of leasing 25,000 gross acres and 15,000 net acres.