Blue Star raises $15m ahead of drilling maiden helium well

Blue Star has received strong support from new and existing institutional and sophisticated investors for a $15m placement as it nears final approval for its maiden helium well.

The strong capital position will enable the company to accelerate its exploration and development evaluation activities across its Las Animas County acreage in Colorado.

It also comes after Blue Star Helium (ASX:BNL) secured Form 2A Oil and Gas Development Plan approval for its Enterprise 16#1 helium well, which cleared the way for the submission of the final Form 2 Permit to Drill that is typically approved within 30 days of submission.

Proceeds from the placement will be directed towards:

Expanding helium exploration well and water well drilling activities;
Further key acreage leasing initiatives;
Production development studies (surface, subsurface, resources, facilities); and
Working Capital

“The strong support for this raising evidences the large-scale extent and expected high-grade helium content of our Las Animas landholding in Colorado. We are especially pleased to welcome a number of new institutional investors onto the Blue Star register,” managing director Trent Spry said.

“We believe that this shows a growing market recognition of the tightening fundamentals within the global helium market, and most particularly within the world’s largest helium market, the United States.”

He added that the company continued to progress multiple exploration well permits through the Colorado approvals process to provide significant flexibility around well selection and allow a sustained drilling program.

“Drilling of the next water well (BBB#1) is also expected to commence in November. This well is located close to Blue Star’s Voyager prospect, which is positioned approximately six miles north from the Model Dome field,” Spry noted.

“Our water well drilling program not only offers significant community relationship benefits but is also a source of valuable additional data with respect to helium prospectivity across our acreage.”

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.