Blue Star ASX23 Dec 2024 04:07
Summary
▪ Executed option agreement to purchase discovered and producing helium assets in the
Great Plains field, Lincoln County, Colorado and the Kregel well in Cheyene County,
Colorado.
▪ Great Plains field historic testing shows helium concentrations of 1.36% to 2.02% with raw
gas flow rates of 5,000 to 10,000 Mcfd.
▪ Highly strategic assets given existing well discoveries, substantial existing production
infrastructure, and proximity to helium liquefaction at Ladder Creek processing facility.
▪ Capex-lite helium development opportunity at Great Plains field recompleting existing wellbores, and utilising associated infrastructure and gas processing plant site.
▪ Kregel well, producing at 1.38% helium, is tied into the Tumbleweed gas gathering system,
which feeds the Ladder Creek helium processing liquefaction plant in Cheyene County.
▪ Kregel associated pipeline and connection provides opportunity for offset wells and
expansion to increase gas through the Ladder Creek facility.
▪ Extensive exploration upside with approximately 283 square miles of exclusive 3D seismic.
▪ Blue Star to deliver specialist helium expertise to drive capture of high-value opportunity.
▪ Low-risk option with entry cost and obligations being staged via well-testing costs.
▪ Well-testing activities to commence promptly depending on weather and field access.
▪ Dual purchase option structure: helium-only development, or all WFE assets including
existing oil and gas production and cash flows.
▪ Evaluation of acquisition funding options underway, including debt and/or strategic JV
partnership(s).
▪ Strong operational synergies with Blue Star’s existing Las Animas projects, and strong
familiarity with permitting/operational requirements.
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