 Blue Star banks US$1.5m plus US$2.7m free carry on Galactica-Pegasus helium project farm out.
Helium One pays US$1.5m for 50% stake in Galactica/Pegasus
It will also fund drilling of a six-well program capped at US$450,000 per well
Helium demand expected to grow from 6Bcf to 8.5Bcf by 2030
Special Report: Blue Star has completed the farm out of a 50% interest in its Galactica/Pegasus project in Colorado, USA, to Helium One Global for US$1.5 million, plus US$2.7m free carry.
As part of the free carry, London-listed Helium One will also fund the drilling of six development wells on top of the already producing State 16 well to form part of initial gas gathering into the Galactica helium production facility.
The swift completion of the deal comes on the back of drilling permits being rubber-stamped by the Colorado Energy and Carbon Management Commission via an Oil and Gas Development Plan.
Each well is being funded to a cap of US$450,000 each and drilling is expected to kick off during this quarter, with an aim for first helium production from Galactica/Pegasus slated for H1 2025.
Lofty prices
Helium, the gas stars produce when they smash two hydrogen atoms together, is highly valued and a finite resource because once released into the atmosphere, the helium molecules – because they are so light – escape Earth’s gravity and are lost into space forever.
It’s used in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and to cool superconducting magnets in MRI scanning machines, with global demand expected to balloon from 6 billion cubic feet (Bcf) to 8.5Bcf by 2030.
Developing Galactica/Pegasus
The Galactica/Pegasus field was discovered by Blue Star Helium (ASX:BNL) in 2022 via the JXSN#1, #2, #3 and #4 wells, which showed gas bearing columns of up to 230 feet containing gas with between ~2-6% helium and initial recorded flow rates of between 125-412Mcfd.
In June this year, BNL drilled the State 16 well, which promisingly flowed 1.9% helium at 285Mcfd in addition to 70% CO2.
Subsequent independent tests and data reviews including the adjacent Red Rocks helium development established likely initial production flow rate estimates of 250-615Mcfd for future development wells.
“The completion of our landmark agreement with Helium One marks the first step in our strategic plan to accelerate growth across our large Las Animas asset portfolio, and to rapidly build and expand our production operations in the region,” BNL CEO Trent Spry says.
“With the farm-in complete, we can now apply our full weight behind executing the Galactica project.
“We are excited to soon be drilling an additional six development wells, following the successful drilling of the State 16 development well earlier this year.
“Together these wells are expected to form the initial gas gathering system into the Galactica helium production facility, delivering exciting, high-value helium and critical CO2 co-product streams, with first production on target for H1 2025.” |
This will need far more cash than you think get real |
Range Farm in funded, however how much working capital do they have ??? |
RNR
Such an excellent RNS that the share price is a … . .
Sea of red
😂😂😂
“Fully funded” 😂😂😂
Where have I heard that before 😂😂😂
Where is the mining licence 😂😂😂 |
Farm out is fully funded so talk of placing is blatant deramp by the usual suspects. |
Plenty of Cash and Revenue to next phase of Development and beyond.
Get on the Train before next RNS.
Fantastic news...more to come with ML |
The previous fund raise included the cost of drilling so, they don't need another one |
They have 12 million in the bank.....catch up |
They have to raise funds for the drill, will await the placing first then might be tradable. |
Timber
Rats are leaving the ship
Full Time scam |
Oh dear.. where is all the cash needed going to come from??? How many more confetti cannon fires can this stock take??? |
Fantastic Breaking News as Expected.
Revenue arrives Early. Drilling Starts days away.
Drilling of these initial six wells is expected to start during Q4 2024, with first helium production expected in H1 2025
CEO agrees Transformative news with Early Revenue and NL now expected very soon.
Future Grows as Assets Increase ahead if schedule.and Early Cash Flow... |
You mean off 😂😂 you must be straggling. |
Morning Blunderheed. You seem extremely grumpy this morning. Problems with the girlfriend again?
I would have thought you would have been happy after the budget last week with penny off a pint!
If you are struggling, I am sure someone else can read the RNS to you. No shame in that.
Enjoy your week as I will be as fun is just around the corner and you will enjoy it too! (Maybe not though)
🤭🤭🤭 |
Excellent RNS and Great weekend of F1.
Looking forward to the Red Bull Party in Las Vegas! |
Board members stands down that is worrying |
Old news nothing knew just same old what's thepoint in that |
Let’s hope for a blue start to the day 7am Rns should push this north gla. |
 COMPLETION OF LANDMARK FARM-IN AGREEMENT - GALACTICA / PEGASUS PROJECT
4 November 2024
Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) (Blue Star or the Company) is pleased to advise that it has successfully completed its agreement to farm out a 50% interest in its Galactica / Pegasus project in Colorado, USA, to Helium One Global Ltd (AIM: HE1) (Helium One).
Blue Star Managing Director and CEO, Trent Spry, said
“The completion of our landmark agreement with Helium One marks the first step in our strategic plan to accelerate growth across our large Las Animas asset portfolio, and to rapidly build and expand our production operations in the region.
“With the farm-in complete, we can now apply our full weight behind executing the Galactica project.
“We are excited to soon be drilling an additional six development wells, following the successful drilling of the State 16 development well earlier this year. Together these wells are expected to form the initial gas gathering system into the Galactica helium production facility, delivering exciting, high-value helium and critical CO2 co-product streams, with first production on target for H1 2025.” |
Get ready before RNS..
Be Patient as ML RNS is due to be released.
CEO stated further announcements to come.
Happy Days with early Revenue and ML award. |
Pinocchio strikes again
🤥 🤥 🤥 |
Happy Days with early Revenue and ML award. |
Shame you should have mentioned you were missing, I could have bought you a one way ticket with profits from Aminex! How much have you lost here now or are you too ashamed to say? |
Pinocchio - I haven’t gone to Brazil this week or Mexico last week. Will be doing Qatar & Abu Dhabi though to see Red Bull win Drivers Championship.
They won’t allow bellends like you attend.
Bell End 🤭🤭🤭 |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
