Congratulations to Blue Star Helium (BNL.ASX) who today executed a gas processing agreement with IACX at their Voyager prospect, Colorado USA and are targeting production in Q4CY23. Includes delivery and operation of a helium recovery plant with nameplate raw gas throughput of 2 MMcf/day to produce 98+% purity helium product gas.Targeted helium production based on an average of 8% helium in the raw gas is expected to be approx. 38 MMcf net to Blue Star in first full capacity yearForecast total field and plant operating cost is highly attractive at an approximate US$100- 120/Mcf of helium product gas (full capacity). Recent short term, 2-year offtake with another producer was struck at US$750 MCF. A year ago, this would have been closer to US$400 MCF.Spot He well over US$1,000 Mcf BackgroundFor those of you looking for Helium exposure, a high growth commodity with no substitute and strong macro tailwinds take a look at Blue Star Helium (BNL.ASX) M/cap ~A$46MBNL will be the NEXT listed global helium producer and will target production in Q4CY23Spot Helium well over US$1,000 MCFRecent short term, 2-year offtake with another producer was struck at US$750 MCF. A year ago, this would have been closer to US$400 MCFStrategic footprint increased by ~25% in the Voyager resource area. This new acreage will go straight to the P90 and P50 resource numbers which stand globally at 643 MMCF (contingent resource at Voyager) and 13 BCF of prospective resource across the total portfolioNewly acquired acreage is highly prospective for Helium and is adjacent to BBB#1 (8.8% Helium) and in the same structure as Model Dome (see map below)The key access agreements on this new acreage allow for a more optimised development2 x production wells are expected to be drilled in August ‘23 and to be tied into production at Voyager & 1 X Exploration well. All in Cash costs, including leasing the plant are estimated to be at ~US$120 MCFCash approx. A$5M/ Market Cap ~A$49MHelium prices remain high. Helium has no substitute and is used in all high tech applications (i.e. as a coolant in server racks, satellites, rockets, MRI machines)Located in Las Animas, Colorado, USA. A proven, historically producing region with multiple liquification facilities all within trucking distance. (~100 Miles) Low Capex & Opex in a well-known and SAFE jurisdictionHelium recently added to the EU critical metals listHigh Grade Helium up to ~>8% HeAdjacent to the Model Dome Field. (US GOVT strategic Helium reserve)
BNL Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
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