Blue Star Helium's significant discovery at State 16 well

Blue Star Helium Limited (ASX: $BNL) has confirmed a significant helium discovery at the State 16 SWSE 3054 development well at its Galactica helium project in Las Animas County, Colorado. The laboratory analysis of reservoir samples shows air-corrected helium concentrations up to 1.90%, consistent with offset discovery wells. The peak flow rates reached as high as 313 Mcfd, stabilised at 285 Mcfd, and the CO2 approaching 70% concentration has the potential to contribute significant revenues. The Company has filed a new OGDP for 5 additional development wells and is progressing the helium processing plant site permitting.

Executive commentary on the State 16 well results

The Company's independent engineering consultants are evaluating the data from the flow test and pressure build up to determine a maximum stabilised rate and drawdown for the well which will be modelled for incorporation into development planning and economics. These results are in-line with the Company's ongoing development planning and economic modelling and are consistent with the results from the adjacent commercialised helium development at Red Rocks.

Summary of Blue Star Helium's State 16 well discovery

Blue Star Helium (ASX: $BNL) has announced a significant helium discovery at the State 16 SWSE 3054 development well at its Galactica helium project in Las Animas County, Colorado. The preliminary results indicate a sustained flow rate of 150 Mcfd with 5.5 psig flowing well head pressure, starting at a rate of 208 Mcfd and 6.5 psig flowing pressure. The well also showed a drawdown to atmospheric pressure with rates of 285 Mcfd starting as high as 313 Mcfd with 2.5 psig flowing pressure. The lab analysis of representative reservoir samples contained an average helium percentage of 1.65% and up to 1.90% when air-corrected. These results are consistent with the Company's geologic model, and the CO2 content allows for an additional product stream to be captured, purified, and sold, significantly contributing to revenues. The Company has filed a new OGDP for 5 additional development wells and is progressing the helium processing plant site permitting, indicating a positive outlook for the company's future endeavors.