Blue Star Helium update on Serenity project

Blue Star Helium Limited (ASX: $BNL) has announced the targeted addition of primary, premium CO2 product from the Serenity project to its high-grade helium and CO2 co-product offering from Galactica/Pegasus. The company has increased its stake in the Serenity project to 100% at zero cash or scrip outlay, providing a foundation to commercialize the CO2 component of its key asset focus, the Galactica/Pegasus helium project.

Executive commentary on CO2 commercialisation opportunity

The primary CO2 commercialisation opportunity at the Sammons 315310C well and across the broader Serenity project excites us. It aligns neatly with our planned co-production of premium CO2 at Galactica/Pegasus along with high-grade helium. Serenity offers a very high-grade, natural CO2 development opportunity enabling Blue Star to deliver a valuable additional gas product to end-users in critical markets that are undersupplied with reliable, sustainable CO2 streams. The advancement of Serenity is also expected to be technically and commercially foundational to monetizing the CO2 co-product from our core development focus, the Galactica/Pegasus helium project. - Trent Spry, Managing Director & CEO, Blue Star Helium

Summary of Blue Star Helium's CO2 addition to its portfolio

Blue Star Helium (ASX: $BNL) has acquired the interests of Vecta Oil & Gas Ltd and its partners in the mineral leases, the Sammons 315310C well, and three additional approved drilling locations to enhance its industrial gas portfolio. The company has lifted its interest in approximately 18,141 net acres from 50% to 100% without any cash or scrip consideration. The targeted development of a primary CO2 production stream from Serenity provides a foundation to commercialize the CO2 component of its Galactica/Pegasus helium project. Blue Star's goal is the production of high-grade helium from Galactica/Pegasus and the sustainable production of food/beverage grade CO2 from both Serenity and Galactica/Pegasus. The company aims to contract targeted CO2 production for fixed-price offtake with large beverage corporations, dry ice manufacturers, regional distributors, and others. The US carbon dioxide market presents significant growth opportunities, and Blue Star's strategic move aligns with the industry's demand for reliable new sources. The company's focus on delivering valuable additional gas products to critical markets underscores its commitment to meeting the undersupplied demand for sustainable CO2 streams.