Key details on Blue Star Helium's latest agreement

Blue Star Helium (ASX:BNL) has finalized a farm-in agreement with Helium One Global Ltd, granting Helium One a 50% stake in the Galactica Pegasus project located in Colorado, USA. This collaboration involves Helium One investing US$1.5 million and funding the drilling of six development wells. Blue Star will remain the project operator, with drilling set to commence in Q4 2024 and initial helium production anticipated in the first half of 2025.

Overview and strategic outlook

Blue Star Helium has entered a strategic farm-in agreement with Helium One, allowing Helium One to acquire a 50% interest in the Galactica Pegasus project. This arrangement involves a US$1.5 million payment and funding for six wells, capped at US$450,000 per well. The project, with Blue Star as the operator, aims to commence drilling in late 2024 and expects initial helium production by early 2025. The Galactica / Pegasus field, discovered in 2022, has shown promising helium concentrations. This partnership is a significant step in Blue Star's strategy to enhance its production capabilities and capitalize on the strategic importance of helium, essential for high-tech industries. Regulatory approvals are underway, and Blue Star is committed to advancing the project efficiently.

Executive commentary on strategic partnership

This agreement accelerates Blue Star's growth in its Las Animas asset portfolio, expanding its production capabilities through strategic collaboration with Helium One. The Galactica Pegasus project presents significant opportunities for helium extraction, a vital resource for numerous high-tech applications.