And one from HFH12 Sep 2024 12:03
So let me explain to everyone what happened to BlueStar. Firstly, they were trying to run two projects in parallel, Voyager and Galactica-Pegasus. Voyager was their flagship and was supposed to generate the initial revenue to fund the Galactica-Pegasus development wells. However, both their initial wells came up with very low pressure and anomalous flow rates. For those who don't know the word it means 'deviating from what is standard, normal or expected'.
Whilst this was going on they were also progressing the Galactica-Pegasus project, and with the success they were having in effect abandoned the Voyager project. BUT, as they hadn't generated any revenue they were left with a problem. They were left with only £600,000 cash as of June 24 after already spending $1.5m on Galactica-Pegasus as well as millions on Voyager. They had no money to drill their development wells.
Being opportunistic HE1 stepped in. For rescuing them by paying their $1.5m initial project spend and committing to fund their first 6 development wells, HE1 got:
A 50% share of the 36 development wells.
A 50% share of all BlueStar leases associated with 61 000 acres with the option to fully aquire them should they wish to.
BlueStar put themselves over a barrel and HE1 took advantage. BlueStar then had the ability to raise a bit of money and with HE1 paying past costs and initial drilling they are now solvent until revenues start, and HE1 have done a fantastic piece of business for us holders. The first six wells will fund the next nine and the next nine will fund the other twenty one, and exploration of the other leases.
You see, research really does allow you to keep calm when others are losing their heads.