Blue Star’s all new US team-up will leverage local helium expertise

Blue Star continues to progress its helium ambitions, signing an agreement with two companies to jointly develop its Serenity prospect… and beyond.

Blue Star will work with Vecta Oil and Gas – an existing helium producer in Cheyenne County – and Prospero Oil and Gas to jointly develop helium leases in an Area of Mutual Interest (AMI) within Las Animas County that will provide a number of benefits.

These include wider exploration (and potentially production) well exposure; clear synergies with its own exploration; evaluation activities; direct access to existing helium production expertise and; validation of its tenure and personnel.

Blue Star Helium (ASX:BNL) will contribute 4,334 net acres and take up a 50% non-operated interest in the AMI while Vecta and Prospero will contribute 10,212 net acres.

Vecta will serve as the operator of the AMI with a 25% interest.

“This is an exciting transaction for Blue Star and one we have been working towards with the Vecta team for some time now,” managing director Trent Spry said.

“We look forward to providing an idea of the potential of the Serenity area upon completion of a prospective resource estimate for the AMI, which is targeted for next quarter and the drilling of the first well in the AMI anticipated for early Q2 CY22.

“Blue Star has been leasing in this part of the County ever since we identified the Serenity prospect in 2019,” Spry said.

“This transaction enables us to increase our interests in this prospect with the added benefit of expected near-term drilling by an experienced operator with strong alignment in the outcome.”

Helium AMI

The AMI is located southeast of the company’s Galactica prospect and covers 126 square miles.

Vecta currently has a Form 2A application submitted for the drilling of four helium exploration wells within the area with an approval hearing scheduled for February 2022.

The first well – Sammons 315310D – is expected to be drilled once permitting as secured.

All parties have agreed to participate for their respective working interest shares in the drilling of the well with Blue Star estimating its share of costs at less than US$150,000.

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.