Ann: JACKSON 29 FLOW TEST AND GAS ANALYSIS UPDATE, page-4

Based on the information provided in the Blue Star Helium announcement regarding the Jackson 29 well, here is a geological assessment from a professional standpoint:

1. Geological Formation and Quality

• The Lyons Formation, encountered at ~1,122 feet, is a well-known target for helium in this region (Las Animas County, Colorado).

• The upper Lyons sandstone unit appears to be high-quality: wireline logs confirm good porosity and gas saturation, which aligns with prior successful wells in the area.

This is a positive geological indicator: the reservoir rock is suitable for production, and the absence of water suggests the gas column is well-separated and undiluted.

2. Reservoir Performance

• Natural flow was observed during drilling and at total depth (TD), which is unusual for low-pressure helium systems and suggests high permeability and strong reservoir connectivity.

• Permeability estimates (from analogous wells in the project) range from 300 to 750 millidarcies (mD), with Jackson 29 likely at the higher end given its performance.

These permeability values are excellent for a tight sandstone reservoir and explain the strong flow rates without stimulation.

3. Flow Rates

• Initial flow reached ~320 Mcfd (thousand cubic feet per day), with projected stabilised rates of 350–450 Mcfd and a potential peak of 550 Mcfd.

• Compared to State 16 (natural flow 150 Mcfd, stabilized at 250–350 Mcfd), Jackson 29 is substantially more productive.

This positions Jackson 29 as a key development well with attractive economics and higher expected recovery per well.

4. Gas Composition

• Gas analysis reveals:

  • Helium content up to 3.30% (air-corrected) – this is very high in commercial terms.

  • CO₂: 48.66%

  • N₂: 48.04%

  • No hydrocarbons detected.

High helium content makes the well economically significant, while the high CO₂/N₂ mix is consistent with non-hydrocarbon helium plays in the region. These gases are manageable with the right processing infrastructure.

5. Development Implications

• Jackson 29 supports the viability of the Galactica Project.

• The strong natural flow without stimulation, high permeability, and favourable gas composition all support scaling up development.

• No water or hydrocarbons means less complexity in processing and minimal risk of water breakthrough.

Conclusion

From a geological and reservoir engineering standpoint, Jackson 29 is a very promising well. It validates the Lyons Sandstone as a productive helium reservoir, confirms high permeability and reservoir continuity, and delivers strong flow with high helium content. It should be considered a model well for future development planning across the Galactica Project.

Let me know if you'd like a summary formatted for investors or technical stakeholders.