Blue Star lifts off with more helium ground in Colorado

Special Report: Blue Star continues to build up its landholding over six priority helium prospects, with the addition of a further 34,848 net acres in Colorado.

The 22 new leases were acquired for $US849,492 at the Federal Bureau of Land Management’s land auction, giving it material contiguous leasing over four other highly ranked prospects in addition to the Enterprise and Galileo prospects.

Blue Star Helium (ASX:BNL) says the new leases will allow it to drill multiple wells in its maiden drilling program.

Its total acreage now covers 164,000 gross acres (108,000 net acres).

“The new leasing adds significantly to Blue Star’s dominant acreage position in the area but more importantly we now have a high-net contiguous position over four more of our preferred helium prospects – Voyager, Prometheus, Galactica and the newly named Pegasus,” managing director Joanne Kendrick said.

”We will now conclude in-field surveys and prospective resource assessments to get these four prospects drill-ready and to the same level of technical maturity as Enterprise and Galileo.

“We will then select a number of further prospects to add to our maiden drilling program to test structures within the Lyons Helium Play Fairway proven by the historic Model Dome helium field.”

Blue Star’s helium acreage in Colorado Pic: Supplied

Helium drilling imminent

Blue Star plans to start drilling for helium in the fourth quarter of this year with the location of the first well already staked out at the Enterprise prospect.

Helium, traditionally a low concentration by-product of natural gas production, is a dwindling commodity that is vital in a number of modern technology applications such as MRI and nuclear medicine. Blue Star is targeting high helium concentration accumulations.

It has already identified the potential for the Enterprise and Galileo prospects to host prospective resources of 3 billion cubic feet (Bcf) of 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.