The execution of a Master Services Agreement (MSA) with experienced midstream US provider, IACX Energy, is another step on the development pathway toward targeted first production at Voyager in Q4 2023.

In-line with its chosen commercialisation strategy at the high-grade Voyager development, Blue Star Helium (ASX:BNL) has executed an MSA with IACX Energy for helium recovery services via the delivery and operation of an initial helium recovery plant at Voyager.

Blue Star is responsible for providing a secure site, access to the facility and delivering the raw gas to the facility inlet while IACX supplies and operates the helium plant in exchange for a monthly payment.

According to the company, the process to execute the MSA and associated documents has been thorough and included the appointment of a top tier reserves/resource auditor to evaluate the Voyager resource.

The result has allowed Blue Star to mortgage the Voyager mineral leases in Colorado as collateral to secure the payments required under the MSA.

 

Delivery and operation of a helium recovery plant

Includes delivery and operation of a helium recovery plant with nameplate raw gas throughput of 2 MMcf/day to produce 98+% purity helium product gas.

Targeted helium production based on an average of 8% helium in the raw gas is expected to be approx. 38 MMcf net to Blue Star in first full capacity year.

Forecast total field and plant operating cost is highly attractive at an approximate US$100-120/Mcf of helium product gas (full capacity).

“As well as delivering significant de-risking benefits in terms of upfront capital, time and operating profile, adopting this pathway has also eliminated any requirement for Blue Star to commit to price concession offtake agreements,” BNL managing director and CEO Trent Spry says.

“Now we can target the premium pricing available in short-term US contract markets and spot sales, with current pricing estimates understood to be running at US$450–$3,000/Mcf for 98 to 99.999% purity helium.

“The plant to be supplied at Voyager can be readily expanded via the addition of a modular membrane unit or addition of a second PSA plant to increase helium output in the future, as well as to accommodate additional high He-concentration raw gas from surrounding discoveries.”

 

What’s next?

The facility is planned to start up on site-generated power before eventually transitioning to grid power.

BNL has permitted two wells at Voyager for drilling and is currently seeking permits for a further four wells initial phase wells.

Production well drilling at Voyager is set to commence during August with pressure and flow testing to be undertaken post drilling.

IACX expects to install and commission the facility during Q4 CY2023, subject to receipt of all necessary permits, surface use and access agreements.

 

 

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.

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