Ann: Well Testing Commences in Lincoln County, page-8

Since we know where this is going. Giving the new Grok 3 a run over morning coffee.

Since you’ve asked to open up the Colorado research and focus on Blue Star Helium’s private land holdings, I’ll dive into their land acquisition strategy in Colorado, particularly in Las Animas County, and analyze how it ties into their helium mining efforts. I’ll draw from the existing context, my prior analysis, and relevant X posts to provide a detailed picture, keeping the current date of February 21, 2025, in mind. Let’s break this down.

Blue Star Helium’s Private Land Holdings in Colorado

Blue Star Helium has strategically built a substantial land portfolio in Las Animas County, Colorado, targeting helium-rich formations like the Lyons Formation, historically proven by the nearby Model Dome field (up to 8% helium). Their holdings span both private and federal leases, but their focus on private land offers distinct advantages—faster permitting, fewer regulatory hurdles, and flexibility in development timelines compared to federal or state lands. Here’s how their private land holdings have evolved and what they mean for their helium projects.

Scale and Growth of Holdings

• Early Expansion (2019-2020): Blue Star began aggressively acquiring land in 2019 under its former name, Big Star Energy, leasing 59,510 gross (14,877 net) acres by November 2019. By September 2020, they added 5,356 net acres from private mineral owners, pushing their total to 129,561 gross (73,486 net) acres. This included key prospects like Enterprise and Galileo, near Model Dome.
• Consolidation (Late 2020): By November 2020, they secured an additional 6,720 net acres, bringing their total to 182,000 gross (127,000 net) acres. Much of this growth came from private leases, which lack minimum work commitments and offer a 12.5% royalty to lessors upon production—standard terms that favor rapid scaling.
• Recent Moves (2024): In December 2024, Blue Star executed an option to acquire helium assets in Lincoln and Cheyenne Counties, including the Great Plains field and Kregel well, roughly 100 miles north of Las Animas. While this includes some existing production infrastructure, the deal underscores their ongoing strategy to consolidate private holdings across Colorado’s helium fairway. The option with Wiepking-Fullerton Energy (WFE) highlights private land’s appeal for quick, capex-light development.

Current Footprint

As of early 2025, Blue Star’s Las Animas holdings are estimated at around 246 km² (61,000 gross acres) for the Galactica/Pegasus project alone, where Helium One acquired a 50% stake in 2024. Their broader Colorado portfolio likely exceeds 182,000 gross acres when factoring in Voyager, Serenity, and the Lincoln/Cheyenne option. Private land dominates their Las Animas assets, giving them operational control over key prospects like Galactica, Pegasus, and Voyager.

Strategic Importance of Private Land

Blue Star’s emphasis on private land holdings in Colorado is a deliberate play to streamline helium development:

• Regulatory Advantage: Unlike federal lands managed by the Bureau of Land Management (BLM) or state lands subject to auctions and stricter oversight, private leases in Colorado face lighter regulation. The Colorado Oil and Gas Conservation Commission (COGCC) approved four Galactica/Pegasus wells in 2023, and recent X posts (e.g.,

  @MiningJournal

  , January 2025) suggest drilling progress (Jackson-31 and Jackson-04) without the delays seen in Minnesota’s public land debates.
• Proximity to Infrastructure: Las Animas County’s private lands are near underutilized helium infrastructure, like the Ladder Creek processing facility (linked via the Tumbleweed gas gathering system). The December 2024 Lincoln/Cheyenne option reinforces this, offering access to existing wells and pipelines, reducing capex for Blue Star’s planned H1 2025 production at Galactica.
• High-Grade Potential: Private acreage in Las Animas abuts the Model Dome fairway, with discoveries like JXSN#4 (6.06% helium) and State-16 (1.9% helium, 285 Mcf/d). The Great Plains field (1.36%-2.02% helium) further validates private land’s helium richness across Colorado.

Research and Development Context

Blue Star’s private land strategy aligns with their research-driven approach to helium extraction:

• Geological Targeting: Their focus on the Lyons Formation stems from historical data (Model Dome’s 8% helium) and modern well results. Water well drilling in 2021 near Voyager showed 26 feet of gas effect in the Lyons, hinting at untapped reserves—data gained from private landowner partnerships.
• Partnership with Helium One: The 2024 farm-in deal leverages private land flexibility. Helium One’s $1.5 million investment and six-well drilling commitment (started Q4 2024) rely on Blue Star’s contiguous private holdings, enabling a five-well program at Galactica/Pegasus by mid-2025.
• CO2 Co-Product: Private land wells like State-16 yield up to 70% CO2 alongside helium, offering a dual revenue stream. Blue Star’s research into CO2 monetization (e.g., industrial use or carbon capture) enhances project economics, a perk easier to pursue on private acreage.

X Sentiment and Insights

X posts from late 2024 and early 2025 reflect growing interest in Blue Star’s Colorado holdings:

• Momentum: A January 2025 post from

  @AminXunofficial

  praised the Jackson Galactica well’s spudding, tied to private land efficiency. Sentiment is bullish, with users noting “Blue Star’s private land play cuts red tape.”
• Scale: Posts highlight their “dominant acreage position” (e.g., 182,000+ gross acres), with some speculating further private lease grabs in 2025 to bolster Galactica’s output.
• Comparison: Users contrast Blue Star’s swift progress with Pulsar Helium’s regulatory snags in Minnesota, crediting private land for Blue Star’s edge.

Analysis of Achievements

Blue Star’s private land holdings in Colorado are a cornerstone of their helium strategy:

• Acreage Dominance: From 14,877 net acres in 2019 to over 127,000 net acres by 2020 (plus recent options), they’ve secured a top-tier position in Las Animas, a proven helium fairway.
• Operational Agility: Private land has enabled rapid permitting (e.g., 2023 COGCC approvals) and drilling (five wells planned by mid-2025), outpacing peers on public lands.
• Economic Upside: High-grade helium (3%-6% at Galactica) and CO2 co-products, paired with low-cost access to infrastructure, position Blue Star for profitability in a market where spot prices hit $450-$3,000/Mcf.

Broader Implications

Blue Star’s private land achievements in Colorado bolster US helium supply security, especially as federal reserves wane. Their Las Animas focus, amplified by the Helium One partnership, could see them rival Pulsar’s Minnesota project in output if production scales as planned. The Lincoln/Cheyenne option suggests they’re not done expanding, eyeing private assets to diversify beyond Las Animas.

If you’d like me to drill deeper into a specific prospect (e.g., Galactica’s well data) or compare private vs. federal land impacts further, just let me know your next step!