Australian oil and gas exploration company Big Star Energy has leased an additional 1,640 net acres at the Enterprise, Voyager, Millennium, Galactica and Prometheus prospects in Colorado, US.
Big Star Managing Director Joanne Kendrick commented, “We are rapidly extending and consolidating our leasing coverage of the Enterprise prospect where we are targeting our exploration efforts on the Lyons Sandstone, which is pervasive in the region and has previously produced helium in Las Animas County.”
“We are also pleased to have acquired a lease in our Prometheus prospect, which includes an elevated helium sample taken during our regional gas survey.”
“We will continue to consolidate our leasing position at Enterprise and our other prospects.”
The new lease is for an initial term of five years with an option to renew for a further five years.
If the company successfully produces helium or other products from the lease area, a 12.5% royalty will be payable to the lessor and the lease term will be extended indefinitely until production ceases.
The lease does not include any minimum work commitments, Big Star said.
The company has agreed to pay lease bonuses to the lessors on or before 28th February 2020 after concluding customary due diligence.