Blue Star updates Voyager resources by 33% ahead of commercial helium production

Blue Star Helium updates to 2C contingent resource of 857MMscf at Voyager project in US
Company targeting commissioning of helium production facility in Q1 2024
BNL also just successfully spudded the second well at Voyager

Special Report: Blue Star Helium is inching closer to becoming the next helium producer, releasing an updated independent assessment of the resources at its Voyager project in Colorado, USA, of a 2C net unrisked contingent helium resource of 857 MMscf.

A 2C contingent resource is one with an ~50% chance of being economically recovered.

Notably, the update also includes 1C contingent resources of 388MMscf, which means a ~90% chance of economic recovery.

Overall, that’s a 33% bump on the previous contingent resource, thanks to the company’s acquisition of additional mineral leases in Las Animas Country during 2023 – a region which is home to the historical Model Dome field (just 6 miles from Voyager) which hosts amongst the top three highest helium concentrations in the world.

The ultimate goal of bringing the project into production would make Blue Star Helium (ASX:BNL) one of the first ASX-listed primary helium plays to enter production, allowing it to tap into high helium prices due to a critical lack of supply.

“This is a timely update to the contingent resources at our Voyager helium development project as we move the project into commercial production,” MD and CEO Trent Spry said.

The world’s next helium producer

The timing of the update couldn’t be better, as the company eyes commissioning of its helium production facility during Q1 CY2024 by IACX Energy – who will provide gas processing services via an owned and operated helium recovery plant.

“Development well drilling restarts in January 2024 where we plan to convert the contingent resources into reserves and production,” Spry said.

“It is an exciting time for Blue Star as we await the results of production drilling ahead of commissioning of our first helium production facility during Q1 CY2024 by IACX.

“Blue Star is looking forward to becoming a new helium producer right in the middle of the largest helium market in the world, the US.”

Total field and plant operating cost is highly attractive at around US$100-120/Mcf of helium product gas (full capacity) with targeted helium production of 38 MMcf in the first full capacity year.

Pic: Voyager is just 6 miles from the Model Dome Field in Colorado. Source: BNL.

Six wells approved for drilling

Last month BNL secured regulatory approval to drill four additional wells at Voyager, which means the company now has a robust inventory of six wells approved for drilling.

This allows flexibility to optimise early drilling of the discovered resource at Voyager and for BNL to expand its initial Voyager development well drilling program early Q1 CY2024.

To date, BNL has successfully spudded the second well at Voyager and expects the project will ultimately utilise a 20-well development inventory to maximise the contingent resource.

 

This article was developed in collaboration with Blue Star Helium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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