Blue Star Helium picks up more prospective land with drilling set to kick-off in New Year
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Special Report: Blue Star Helium has secured more acreage over the highly promising Galactica and Pegasus prospects as it moves towards defining independent resources for them.
Blue Star Helium (ASX:BNL) added an extra 32,858 gross acres of land to its highly prospective portfolio of helium prospects in Colorado’s Las Animas County.
The newly leased land, which takes Blue Star Helium’s total landholding in Las Animas County to around 215,000 gross acres, spans a number of prospects and was acquired for US$470,253.50 at the Federal Bureau of Land Management auction on December 17.
Much of the new acreage acquired covers the Galactica and Pegasus, where independent prospective resources are expected soon. Site visits were recently completed to evaluate potential wells at these prospects, as well as at the Voyager, Galileo and Enterprise prospects.
The company has previously flagged Galactica and Pegasus as potentially being on equal footing with Enterprise – a vote of confidence, given Enterprise has already been staked as the company’s first helium well.
Maiden drilling on a minimum of three helium wells, and potentially five, will begin once permit approvals are received – this is expected early in 2021.
Blue Star managing director Joanne Kendrick said today’s announcement was a boost for the company as it headed into the new year.
“Blue Star is excited to acquire these additional leases including, in particular, those over our Galactica and Pegasus prospects where we expect to publish an independent resource report in January,” she said.
“We’re looking forward to an incredibly active 2021 with our recent $6 million placement ensuring we are well-funded to deliver our maiden drilling campaign as well as additional strategic leasing acquisitions.”
Blue Star has strengthened its landholding in the region a number of times this year as it works towards its maiden wells in Las Animas County.
In November it increased the upgraded prospective helium resources at Enterprise and Galileo by 16 per cent, to 3.5 billion cubic feet.
The capital raising of $6 million, also in November, offered additional cash to pick up the pace for planned drilling of three to five wells in Colorado, as well as further leases and working capital.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.