Blue Star’s exploration strategy has paid off in spades with the definition of a best estimate 643 million standard cubic foot unrisked contingent resource of valuable helium at its Voyager project.

Just how valuable you ask? According to the World Economic Forum, the cost of helium – the use of which is indispensable for medical diagnostic equipment, semiconductor manufacturing and cooling nuclear reactors – has increased 250% over the last five years.

Long-term contract prices from Qatar to China are estimated to be over US$400 per thousand cubic feet (Mcf) while spot prices of over US$1,000/Mcf have been noted by various sources.

Blue Star’s best estimate announced today is 643,000 Mcf.

This is in addition to the existing (and lower confidence) prospective resources at its Galactica/Pegasus, Enterprise, Argo, Galileo projects and validates the company’s exploration program that has made a number of discoveries across Las Animas County.

“The independent Contingent Resource certification by Sproule is a key step in the process to allow us to make a final investment decision for the development of the Voyager Helium Field and move the project into commercial production,” managing director Trent Spry said.

“The contingencies required for upgrading of the current contingent resources at Voyager to reserves are currently being addressed as part of the plan of development preparation and offtake agreement discussions.

“Through the current plan of development process, the Voyager Field is now expected to progressively move to reserves, production and commercialisation.”

Blue Star is planning on permitting 15 wells for the Voyager field development and expects a plan for development and front-end engineering and design for an initial processing facility at the Voyager field to be completed during the fourth quarter of 2022.

Commissioning of the facility is expected during the second half of 2023.

Below is the resource classification framework from the PRMS putting Blue Star’s contingent and prospective resources into context.

 

Blue Star ASX BNL Resource
Image: Supplied

 

Aggressive drilling

Highlighting the company’s aggressive exploration plan, it noted last week that it had spudded a fourth helium exploration well at its Galactica/Pegasus prospect.

It is also flow testing the Sammons 315310C exploration well at the Serenity prospect.

Approvals are also already in place for the drilling of four development wells at Galactica/Pegasus.

 

 

 

 

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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