Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has declared a maiden, contingent helium resource for the wholly-owned Voyager Field in Las Animas County, Colorado.
The 2C net unrisked contingent resource clocks in at 643 million standard cubic feet, including a high side, 3C net unrisked estimate of 1,228 million standard cubic feet.
Independent contractor Sproule completed the resource evaluation following the BBB#1 helium discovery, marking a major step toward the prospect’s potential production and commercialisation.
With the resource certification in tow, Voyager is moving toward development, with 15 helium wells slated for permitting.
One step closer to final investment decision
Commenting on the first declaration of contingent resources across BNL’s Las Animas tenure, managing director and CEO Trent Spry said the numbers correlated to an incredibly valuable helium resource.
“The independent contingent resource certification by Sproule is a key step in the process to allow us to make a final investment decision for the development of the Voyager Helium Field and move the project into commercial production,” he stated.
“The contingencies required for upgrading of the current contingent resources at Voyager to reserves are currently being addressed as part of the plan of development preparation and offtake agreement discussions.”
Beyond the Voyager property, Blue Star is exploring the prospective helium resources across Las Animas’ Galactica/Pegasus, Enterprise, Argo and Galileo prospects.
What’s next?
Blue Star plans to launch into planning and front-end engineering and design (FEED) work to support an initial processing facility at the Voyager Field, scheduled for completion in Q4 this year.
From here, the energy stock plans to finish targeted commissioning on a stage one helium production facility in the second half of next year.
Big-picture, Spry said BNL was looking forward to becoming a new helium producer right in the middle of the largest helium market in the world: the US.
“Blue Star was a first mover in Las Animas County, self-generating a portfolio of prospective resources over a vast play area,” he explained.
“The exploration program undertaken this year has resulted in a number of discoveries already, with Voyager being the first to be moved into contingent resource status.”
Considering the current development plan, Spry said the Voyager Field was now expected to move to reserves, production and commercialisation.
“We plan to move our other discoveries such as Galactica/Pegasus, as well as potential future discoveries in the area, at the Lyons helium play level through the same process,” he said.
“At the same time, we are also looking to unlock the deeper play potential of the area.”