Blue Star Helium said it has acquired an additional 22 new leases over 34,848 gross acres within the highly prospective Las Animas region in Colorado, US.
In a statement, the Australian exploration company said the new leases were acquired for $849,492 at the Federal Bureau of Land Management’s (BLM) land auction last Thursday (24th September).
The new leases are expected to enable Blue Star Helium to drill multiple wells in its maiden drilling program.
Additional prospective resource assessments are underway prior to a final decision on expanding the program, the company said.
Blue Star now has total acreage circa 164,000 gross acres.
“The new leasing adds significantly to Blue Star’s dominant acreage position in the area but more importantly we now have a high-net contiguous position over four more of our preferred helium prospects – Voyager, Prometheus, Galactica and the newly named Pegasus,” said Blue Star’s Managing Director Joanne Kendrick.
“We will now conclude in-field surveys and prospective resource assessments to get these four prospects drill-ready and to the same level of technical maturity as Enterprise and Galileo.”
“We will then select a number of further prospects to add to our maiden drilling program to test structures within the Lyons Helium Play Fairway proven by the historic Model Dome helium field.”
gasworld has reached out to Blue Star Helium for further information and to clarify the feasibility of this project.
Proven vs Prospective reserves
There are many different terms and phrases to get accustomed to in the helium business, but few as significant as ‘proven’ and ‘prospective’ reserves when it comes to the future potential and validity of a helium project.
Statements often abound about the prospective reserves of a new helium discovery, while others will cite the proven reserves. So, what do they mean and what’s the difference?
Prospective Resource estimates are developed based on a set of assumptions provided to a geological consultant, assumptions which can be highly optimistic.
These figures can generate great scope for future capacities, but such estimates of prospective resources can and often are obtained before any drilling activity has even occurred at the site in question.
Proved Reserves, however, are considered almost definite. These are, as the name implies, proven and more precise than estimates alone. In fact, most investment decisions are based on something called ‘2P Reserves’ – which means Proved + Probable.