- Big Star Energy (BNL) has leased another 59,000 gross acres across its prospects in Colorado
- The company’s acreage position has been gaining rapid momentum lately following yesterday’s acquisition of 63 new leases
- Its total acreage covers over 86,000 gross acres, or 38,000 net acres
- Big Star is pleased, and slightly surprised, to have exceeded its year-end targets by so much
- Company shares remain flat and are trading for 0.8 cents each
Big Star Energy (BNL) has leased a further 59,510 gross (14,877 net) acres across its prospect and lead portfolio in Colorado, U.S.
The company’s acreage position has been gaining rapid momentum lately as, just yesterday, it acquired 63 new leases which brought it to 27,104 gross (23,294 net).
“It is extremely pleasing that our leasing program is gathering such momentum, with this material acquisition following on from the highly successful State auction last week,” Managing Director Joanne Kendrick said.
Big Star now has 86,614 gross (38,171 net) acres in total spanning across various helium prospects.
“I am delighted that we have exceeded our year-end targets by so much and so soon – currently our lease position sits at 346% and 254% of the gross and net targets respectively,” Joanne said.
The new lease is for an initial term of five years with the option to renew for a further five.
If the company successfully produces helium, or other products, from the lease area, a 12.5 per cent royalty will be payable to the lessor and the lease term will be extended indefinitely.
Big Star is the only working interest owner in the lease.
The company has agreed to pay a consideration of US$75,000 (A$110,848) to the lessor once the lease acquisition is complete which is due by April 1 2020.
Company shares remain flat and are trading for 0.8 cents each at 1:10 pm AEDT.