Blue Star Helium

TRENT SPRY

CEO & MANAGING DIRECTOR

◾ Company Name: Blue Star Helium ◾ Company ASX code: BNL ◾ Key areas: Helium ◾ Key Personnel: Ross Warner, Executive Chairman | Trent Spry, CEO & Managing Director | Peter Kondrat, Chief Operating Officer | Scott Fenoglio, Chief Financial Officer ◾ Locations: Colorado, US ◾ Market Cap as of 15/10/22: $44.41 ◾ 52 Week share price as of 15/10/22: $0.025 - $0.069 ◾ Company Website: www.bluestarhelium.com

(ASX:BNL)

COMPANY PROFILE

Helium is an irreplaceable gas used in a multitude of high-tech applications including MRIs, semiconductor manufacturing, nuclear reactor cooling and fibre optics.

Growing demand and continued supply scarcity have combined to increase helium prices to historic highs over US$1,000 per thousand cubic feet - around 140 times the current Henry Hub natural gas spot price.

It is little wonder Blue Star Helium has aggressively progressed an exploration and development program across its portfolio in Colorado’s Las Animas County, near the historically significant and government-owned Model Dome helium field.

BNL’s work in Las Animas has paid off in spades so far, with the company making five helium discoveries – four at the Galactica/Pegasus field and one at the Voyager field, while gas has also been logged at two wells within the Enterprise field.

At Galactica/Pegasus, Blue Star recently declared its fourth exploration well – JXSN#4 – to be a high helium concentration discovery, registering 6.06% helium concentration – nearly double the 3.14% helium content of its JXSN#2 discovery. JXSN wells have flowed at rates of up to 412,000 cubic feet of gas to surface during drilling.

“The results of this well will be integrated into the current resource update process for Galactica/Pegasus which is expected to culminate in the declaration of contingent resources for this field,” BNL managing director Trent Spry said.

Over at the Voyager project, the successful BBB#1 well that intersected a 134ft gas column with 8.8% helium concentration – comparable to that found at the Model Dome field – has allowed the company to pencil in an unrisked best estimate contingent resource of 643 million standard cubic feet.

This is additional to the existing prospective helium resource across Blue Star’s Las Animas prospects - previously reported at 13.4 billion cubic feet and currently being updated.

And this is just the activity within its wholly-owned projects.

Blue Star has also participated in the successful drilling of the Sammons 315310C well within the Serenity Area of Mutual Interest – the first of four wells shared between itself (50%), operator Vecta Oil & Gas (25%) and Prospero Oil and Gas (25%).

This well flowed gas at rates of up to 500,000 cubic feet in testing carried out during drilling, and the partners are currently reviewing flow test, pressure and compositional data after encountering additional gas in the lower Lyons formation.

With successful exploration under its belt, the well-funded company ($10.8m cash at 30 June 2022) is planning development and FEED studies for processing facilities across its projects.

It is also gearing up for drilling helium development wells, with 56 planned across its land position at varying stages of permitting.

This includes seven offset development wells in advanced stages of permitting at the Galactica/Pegasus and Voyager fields.

KEY INVESTMENT HIGHLIGHTS

◾ A pure helium play with a largely untested strategic US land position in Las Animas County, Colorado. ◾ Ongoing low-cost, high-impact exploration and development drilling program has made several discoveries at the Galactica/Pegasus and Voyager fields, allowing for significant, high-grade green helium contingent resources to be booked. ◾ Clear commercialisation pathways are available for the critically under-supplied helium market.