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Blue Star Helium
Overview
Blue Star Helium (ASX:BNL,OTCQB:BSNLF) is an independent helium exploration and production company with operations in North America. The Australia-headquartered company’s strategy is to find new and undeveloped low-cost sources of high-grade helium.
Helium is a high-value commodity with widespread use in the technology and medical industries, but we’re facing a global shortage that may hinder growth in critical technologies. The so-called, helium shortage 4.0, is caused by inadequate supply resulting from declining and unreliable helium sources from the U.S. Bureau of Land Management and failures at existing and new plants as well as Russia’s invasion of Ukraine. The global shortage has prompted the Compressed Gas Association to officially request federal intervention to consider helium necessary for U.S. national security.
The global helium market is projected to reach US$20.17 billion by 2026, growing by a CAGR of 13 percent between 2022 and 2026. Helium is necessary for dozens of applications, including hard drives, airbags, mobile phones, semiconductor manufacture, MRIs, welding and rocketry. As helium production declines and anticipated sources are affected by geopolitical factors, amongst growing demand, the need to explore and develop more reliable sources of helium has become evident.
Blue Star Helium’s first-mover flagship assets are within the county of Las Animas in Colorado, with nearby vital infrastructure and the world’s largest helium marketplace. An experienced management team with expertise throughout the natural resources industry leads Blue Star Helium toward its goals.
The company is a pure helium play with a large-scale land position in Colorado surrounding historic helium analogs, such as the government-owned Model Dome helium field. Blue Star Helium benefits from a clear commercialization pathway resulting from an under-supplied helium market. Blue Sky Helium’s assets are categorized into the proven Lyons helium play and a range of secondary targets with highly prospective potential projects.
Blue Star’s ongoing low-cost and high-impact exploration and development program has already made significant discoveries within the Lyons play at its Galactica/Pegasus and Voyager fields. Both prospects are presently pending helium development well permits following significant discoveries. In addition, the company recently announced that its fourth exploration well at the Galactica/Pegasus asset is a high-helium concentration discovery, with results registering 6.06 percent helium concentration. This new announcement is nearly double the 3.14 percent helium content of previous discoveries at the Galactica/Pegasus project.
Additionally, the company’s Voyager project recently intersected a 134-foot gas column with an 8.8 percent helium concentration comparable to the Model Dome field and representing one of the highest helium grades in the US and globally. This new discovery allows the company to create a best-estimate contingent resource of 643 million standard cubic feet. These discoveries at Galactica/Pegasus and Voyager indicate the blue-sky potential of the company’s untested land holdings.
An experienced management team leads Blue Star to capitalize on its first-mover advantage and realize its assets' potential. Trent Spry, CEO, brings expertise in geoscience, exploration and project development in Australia and the United States. Ross Warner, executive chairman, has held executive leadership roles in ASX and AIM-listed companies and was previously a corporate finance lawyer in the UK and Australia. Neil Rinaldi, non-executive director, has a successful track record throughout the finance sector spanning over twenty years.
Company Highlights
- Blue Star Helium is an Australia-headquartered helium exploration and production company with large-scale operations in North America.
- The company’s strategy targets low-cost exploration and underdeveloped helium sources to move into production.
- Blue Star’s assets are within the county of Las Animas in Colorado, close to the government-acquired historic Model Dome helium field.
- The company recently announced a significant discovery at the Galactica/Pegasus prospect, with a new drill hole registering 6.06 percent helium concentration.
- Another new discovery at the Voyager project intersected a 134-foot gas column with 8.8 percent helium concentration, directly comparable to the Model Dome field. Representing one of the highest helium grades in the US and globally.
- A management team with directly relevant expertise in the natural resources industry leads the company toward its goals.
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Developing High-Grade Helium Assets in Colorado