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- Blue Star Helium (BNL) has agreed to work with two US companies on joint development of leases its holds in the American state of Colorado
- The target area includes Blue Star’s Serenity prospect, which is located immediately to the south-east of its Galactica and Pegasus prospects
- A completed prospective resource estimate for the area has been scheduled for the start of next year
- Blue Star closed Tuesday at $0.05.
Blue Star Helium (BNL) has agreed to work with two US companies on joint development of leases its holds in the American state of Colorado.
The agreement is to jointly develop helium leases in an Area of Mutual Interest (AMI) with private entities, Vecta Oil and Gas Ltd and Prospero Oil and Gas, in Las Animas County, Colorado. The AMI includes Blue Star’s Serenity prospect, which is located immediately to the south-east of its Galactica and Pegasus prospects.
Vecta and Prospero have each contributed 10,212 net acres while Blue Star has contributed 4,334 acres to the AMI, totalling 14,551 net acres.
A completed prospective resource estimate for the AMI has been scheduled for the start of next year.
Vecta holds an application for four helium exploration wells within the AMI, approval hearings have been scheduled for February 2022.
Blue Star Helium CEO Trent Spry said Vecta is already an existing producer in Cheyenne County, Utah and in Colorado, where its first well is scheduled to comment drilling in the second quarter of 2022.
It will also be the operator at the sites acquired under the AMI.
“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 the second quarter of 2022,” Mr Spry said.
“Blue Star has been leasing in this part of the County ever since we identified the Serenity prospect in 2019. 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,” he said.
“Our other activity schedule in Las Animas remains unchanged. We expect to be drilling shortly at our maiden Enterprise 16#1 helium exploration well and then undertaking an extensive drilling program across multiple key prospects through calendar 2022.”
Blue Star closed Tuesday at $0.05.
