Blue Star Helium Limited provided an update on helium well permitting at its Galactica/Pegasus and Voyager helium prospects in Las Animas County, Colorado. Notification has been received of a Colorado Oil and Gas Conservation Commission (COGCC) approval hearing date (Form 2A Oil and Gas Development Plan (OGDP)) for the four planned helium appraisal and development wells at Galactica/Pegasus. The approval hearing is set for 19 July 2022.

The Company will lodge permits to drill (Form 2) in respect of each well after approval at the hearing. These well locations are expected to deliver rapid follow-up appraisal and targeted development of the helium discoveries announced last week at the Galactica/Pegasus prospects with helium concentrations up to 3.14% (see BNL ASX release dated 17 May 2022, Helium Discoveries at Galactica/Pegasus). Subject to final permitting, Blue Star expects to drill all four of these wells at Galactica/Pegasus during second half of 2022.

Blue Star recently engaged consulting engineers, SIGIT, to commence a second Front-End Engineering and Design (FEED) study (in addition to the one underway for the Voyager prospect) for a facility located in the east servicing the Galactica, Pegasus and Serenity prospects. Independent resource consultant, Sproule, has also been engaged to undertake an update of the Galactica/Pegasus resource following the recent discoveries, with a declaration of at least contingent resources expected. As also recently announced, the Voyager prospect is being fast tracked for development after the breakthrough success of BBB#1 exploratory water well, which returned a 134 ft gas column in the Lyons formation with a calculated air-free helium concentration of 8.8% (see BNL ASX releases dated 17 November 2021, 21 December 2021 and 5 April 2022).

Two appraisal and development well locations (Form 2A), offsetting the BBB#1 helium discovery, have now been submitted. Submission of a further three well location applications is expected to follow in the next few weeks. These five Voyager wells represent the initial planned production wells of the field development plan.

Blue Star is also currently finalising the planned location of Phase 2 development wells at Voyager. These well locations are being designed to deliver a substantial degree of flexibility and responsiveness with respect to progressive Phase 1 well outcomes. Sproule has been engaged to prepare the first independent resource assessment for the Voyager prospect.

Blue Star's current Las Animas P50 net unrisked prospective helium resource of 13.4 Bcf does not include an estimate for the Voyager prospect.