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Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) (Blue Star or the Company) is pleased to provide an update on activities undertaken during the quarter ended 30 June 2023.
Highlights
Voyager
- Master Services Agreement (MSA) executed with experienced US midstream provider, IACX Energy LLC (IACX), to provide helium recovery services through delivery and operation of a pressure swing adsorption (PSA) helium (He) recovery plant at high-grade Voyager project.
- The agreement includes the delivery and operation of a helium recovery plant with nameplate raw gas throughput of 2 MMcf/day to produce 98+% purity helium product gas.
- Plant delivery, installation, commissioning and first production expected during Q4 CY2023.
- Targeted helium production based on an average of 8% helium in raw Voyager gas is expected to be approx. 38 MMcf net to Blue Star in first full capacity year.
- Forecast total field and plant operating cost is highly attractive at an approximate US$100- 120/Mcf of helium product gas (full capacity).
- The Company has two permitted wells, BBB 33#1 and BBB 34#1, with an additional four development wells awaiting OGDP approval and 14 additional well locations identified for permitting.
Galactica/Pegasus
- COGCC has approved a further OGDP for three proposed helium development wells (Jackson #01, Jackson #02 and Jackson #03) to be drilled as offset development wells to the JXSN#1 and JXSN#2 helium discoveries which are expected to be production wells.
- On final approval (Form 2) of this OGDP, Galactica/Pegasus drilling inventory will comprise seven permitted helium development wells, four additional helium development wells awaiting OGDP approval, and 20 additional well locations identified for permitting.
- Development planning is advancing with various commercialisation pathways under consideration, including an initial leased plant and third-party operated option with expansion expected to include a potential CO2 by-product stream.
Corporate
- Quarter end cash balance of A$3.8 million and zero debt.
OPERATIONS
Voyager Field development
Voyager gas processing agreement executed
Blue Star announced on 30 June 2023 that it had executed a MSA with experienced US midstream provider, IACX, for the provision of helium recovery services through the delivery and operation of a helium recovery plant at its maiden helium development at the Voyager prospect.
IACX is a fully integrated helium production, processing and marketing company. Its gas gathering and processing assets are concentrated in central Kansas, eastern New Mexico and the Texas Panhandle; and the company operates a number of standalone facilities across the Midcontinent and Four Corners areas of the US. It currently operates fourteen discrete helium recovery plants in seven states in the US and one Canadian province. One of the existing helium facilities is located in Las Animas County, Colorado, neighbouring Blue Star’s Galactica and Pegasus discoveries.
The execution process was thorough and included the appointment of a top tier reserves/resource auditor to evaluate the Voyager resource. The result of this process allowed Blue Star to mortgage the Voyager mineral leases as collateral to secure the required payments. The ability to post non-cash collateral is another affirmation of the potential resource as the Company moves forward with development.
Click here for the full ASX Release
This article includes content from Blue Star Helium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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