Blue Star Helium continues three to five well drilling campaign across Las Animas landholding in Colorado
- Blue Star Helium increases resource and landholding at Las Animas ahead of drill program
- Blue Star Helium boosts landholding and prospective helium resources at Las Animas
- Blue Star Helium nearly triples total resources in Las Animas portfolio with new independent report
Quick facts: Blue Star Helium Ltd
Price: 0.062 AUD
Market Cap: $77.94 m
About the company
Blue Star Helium Ltd (ASX:BNL) is a Perth-headquartered independent helium exploration and production company with projects in North America.
The company’s strategy is to find and develop new supplies of low-cost, high-grade helium and it has a helium prospect generation program focusing on Utah, Colorado, Arizona and New Mexico, where helium has been previously produced.
This program has identified 30 prospects and leads in initial focus area.
How it is doing
Blue Star Helium Ltd (ASX:BNL, OTC:AZZEF) is well placed ahead of a three to five well drilling campaign across its Las Animas County landholding in Colorado, following increases in resources and landholding in the half-year to June.
The helium explorer released its half-year report in mid-September, showing cash reserves of $3.3 million.
It has made strong progress towards its goal of finding and developing new supplies of low-cost, high-grade helium in the past six months, despite a backdrop of changing oil and gas regulations.
Blue Star increased its P50 prospective helium resource by a whopping 175% back in February, with the Galactica, Pegasus and Argo prospects independently assessed to add 6.1 billion cubic feet to the company’s P50 unrisked prospective helium resource. (P50 refers to the quantity of oil or gas within the reserves category that has a 50% probability of being exceeded.)
Blue Star Helium Ltd (ASX:BNL, OTC:AZZEF) has received notification that its Form 2A application for the Enterprise 16 #1 well has passed completeness review with the Colorado Oil and Gas Conservation Commission (COGCC).
The helium stock believes this is a key achievement following the uncertainty created earlier this year by regulatory changes to the State permitting process and executive orders from the Biden Administration that while targeted at hydrocarbon drilling, caused additional complexity and delay across applications for other drilling activities.
Blue Star Helium Ltd (ASX:BNL, OTC:AZZEF) expects to receive an advanced initial drilling permit for its Enterprise 16#1 well with the Colorado Oil and Gas Conservation Commission (COGCC) this quarter, while a further four applications to test the Galactica and Pegasus prospects are expected to be submitted to the COGCC in August.
During the quarter, the company’s US-based operations were busy furthering preparations, lease acquisitions, surveying and site assessments, as well as refining pathways to commercialisation.
Insight: Blue Star Helium boosts landholding and prospective helium resources at Las...
The increase follows a recent federal lease completion, which formally granted Blue Star nearly 33,000 additional net acres within a helium play fairway.
What management says
Blue Star Helium Ltd's (ASX:BNL) (OTCMKTS:AZZEF) Joanne Kendrick talks Proactive's Andrew Scott through an independent prospective resource evaluation by Sproule Incorporated for the Galactica, Pegasus and Argo prospects which lie within a proven helium play fairway in Colorado, USA. The assessment has added a total P50 unrisked prospective helium resource of 6.1 BCF across the newly assessed prospects, with the historic wells at Galactica and Pegasus having interpreted gas shows.
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