Blue Star Helium Ltd Accelerates Colorado Drilling Development

Rhea-AI Summary

Blue Star Helium Ltd (OTCQB:BSNLF) is nearing approval for its first four development wells in Las Animas, Colorado, following significant helium discoveries in 2022. An additional 13 wells are expected to receive approval from December 2022 to May 2023, along with 19 further permit applications. The company's independent valuation estimates a share price between A$0.13 and A$0.25, with A$9 million in cash and no debt. Helium sales contracts are anticipated, leveraging high market prices. The report emphasizes ongoing resource assessments at recent discoveries.

Positive

• Approval nearing for four development wells, potentially increasing production.
• Independent valuation estimates between A$0.13 and A$0.25 per share, indicating strong growth potential.
• Company maintains A$9 million cash with no debt, providing financial stability.
• Helium sales contracts expected to capitalize on premium pricing in the helium market.

Negative

• None.

LAS ANIMAS, CO / ACCESSWIRE / December 14, 2022 / Following significant Las Animas helium gas discoveries in 2022, Blue Star Helium Ltd (OTCQB:BSNLF)(ASX:BNL) is approaching approval of its first four development wells, nearby the Model Dome Helium gas field.

A further 13 wells are in the pipeline for approval from December 2022 to May 2023. An additional 19 permits are following in the application process.

Blue Star Helium Limited (BNL, formerly Big Star Energy Limited) is an independent helium exploration and production company, headquartered in Australia, with operations and exploration in North America. Blue Star's strategy is to provide its shareholders with exposure to multiple high-value helium projects in North America.

Independent Investment Research (ASIC Licensed) in a recently produced overview and analysis of Blue Star places a base valuation of A$0.13 per share based on conservative assumptions. A Net Present Value estimate is as high as $A0.25 per share. Importantly, additional production wells are expected to come on stream after the wells used in the evaluation.

Cash on hand is around $A9 Million, no debt, with low capital development scenarios being considered.

Helium sales contracts are expected as drilling is completed to capitalize on premium pricing dynamics of the current high value helium market.

The report notes that Sproule has assigned contingent resource to the Voyager discovery and an additional contingent resource estimate is underway for its discoveries at Galactica/Pegasus. The Company will soon be rolling out its plan development for its Las Animas helium project.

The report also provides insights into the global helium industry and peer group comparison.

A copy of the 37 page full report with assumptions for valuation and price target is available at www.independentinvestmentresearch.com.au at no charge. The report may also be viewed on the Company's LinkedIn page https://www.linkedin.com/company/blue-star-helium-limited/

For Further Information Contact:

Trent Spry
CEO
Blue Star Helium Ltd
TSPRY@BLUESTARHELIUM.COM

Gavin Wendt at Independent Investment Research
gavin.wendt@independentinvestmentresearch.com.au

SOURCE: Blue Star Helium Ltd.

View source version on accesswire.com:
https://www.accesswire.com/731740/Blue-Star-Helium-Ltd-Accelerates-Colorado-Drilling-Development

FAQ

What developments are happening with Blue Star Helium Ltd (BSNLF) in 2023?

Blue Star Helium Ltd is seeking approval for its first four development wells in Las Animas, with an additional 13 wells planned for approval by May 2023.

What is the financial status of Blue Star Helium Ltd (BSNLF)?

Blue Star Helium has approximately A$9 million in cash and no debt, indicating strong financial health.

What is the estimated share price for Blue Star Helium Ltd (BSNLF)?

The independent valuation places the share price between A$0.13 and A$0.25 based on conservative assumptions.

How many wells does Blue Star Helium Ltd (BSNLF) plan to drill?

The company plans to drill a total of 36 wells, including the first four under approval and additional wells in the pipeline.

What is the expected impact of helium sales on Blue Star Helium Ltd (BSNLF)?

The company anticipates selling helium at premium prices due to current market dynamics as drilling is completed.