Special Report: Big Star Energy has leased another 5,440 net acres, highly prospective for helium, across its existing gross acreage position in Colorado. The explorer now has a dominant land position over one of North America’s top four historically producing helium regions.

Steep price increases and “supply shocks” in helium threaten basic academic research among broader health and industry applications, according to a Washington University expert.

Going forward, vital users of helium – like academia, space exploration, medicine, and telecommunications – will be threatened by the lack of a reliable supply, said Professor Sophia Hayes in a December briefing on Capitol Hill.

“What we have faced in the past two decades is steep price increases, and supply ‘shocks,’ where helium could not be acquired in some cases at any price,” she said.

“The US Strategic Helium Reserve, which is scheduled for shutdown in fall 2021, is central to these supply shocks.

“The reserve currently supplies more than 4 per cent of domestic demand. But Congress also has decided that private industry should step in when the reserve closes.”

READ: A helium boom is fast approaching … and there aren’t many stocks to choose from

So far this hasn’t happened — but Big Star is working hard to help fill the supply gap.

With its latest acquisition, Big Star now holds a total 92,443 gross and 45,251 net acres in Colorado prospective for high helium concentrations:

The Big Star leases.

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. Big Star has stated that it plans to continue to increase its net acre position across its gross acres by further leasing with mineral owners.

Big Star managing director Joanne Kendrick says this dominant land position in Las Animas, Colorado is one of the top four areas in North America in terms of its historical produced helium concentration from the Model Dome helium field.

The Model Dome field — 6km from Big Star’s Enterprise leases — produced helium for a short time prior to WWII before it was acquired by the federal government for its strategic reserve.

Big Star is targeting the same high-quality reservoir formation at Enterprise.

“We expect to continue to add to both our gross and net positions over preferred prospects in the area whilst we complete the technical and well location selection work, necessary to get five prospects to drill ready status,” Kendrick says.

>> NOW WATCH: 90 Seconds With… Joanne Kendrick, Big Star Energy




This story was developed in collaboration with Big Star Energy, a Stockhead advertiser at the time of publishing.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.