Blue Star grows helium resources by 39pc

Blue Star has increased its unrisked prospective helium resource by 39 per cent to 13.4Bcf after it was awarded an additional 32,858 acres of prospective ground.

The new leases were awarded by the US Bureau of Land Management through its December 2020 auction, taking its total leasehold up to 173,000 net acres (237,000 gross acres).

Blue Star Helium (ASX:BNL) adds that it is on track to receive the final permit to drill the Enterprise 16-1 well during the third quarter of 2021.

It also expects to shortly apply for two new wells in accordance with its rolling permitting strategy.

Helium is a high-value commodity that is vital in a number of modern technology applications such as MRI, nuclear medicine, rocketry and space exploration.

Helium Resource

Blue Star’s helium resource is contained in the Galactica, Pegasus, Argo, Enterprise and Galileo prospects.

Petrophysical analysis of two historical wells within the Galactica and Pegasus prospects had indicated that a significant gas column has been trapped at both locations with sufficient porosity and gas saturations to flow gas.

While neither well was tested for gas or helium, the prospects are all located within the Lyons Helium Play Fairway that was proven by the Model Dome helium field that produced gas with grades of up to 8 per cent helium and are also on trend with the Govt Cynthia True #1 well that flow tested 8.8 per cent helium.

This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.

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