Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) has submitted the Form 2 (final permit to drill) application for the planned Enterprise 16#1 exploration well in Las Animas County, Colorado.
Form 2 has been submitted to the Colorado Oil and Gas Conservation Commission (COGCC) with final approval typically received within 30 days of submission.
Planning for the execution of the Enterprise 16#1 well is already underway with drilling expected to begin promptly after receipt of the approved Form 2.
The company recently raised A$15 million from a share placement to accelerate its exploration and development strategy over the Colorado acreage.
Blue Star placed the shares to sophisticated and institutional investors, who participated at A$0.056 per share for the war chest.
Multiple exploration well permits in Colorado
Blue Star managing director and CEO Trent Spry said following the placement: “The strong support for this raising evidences the large-scale extent and expected high-grade helium content of our Las Animas landholding in Colorado.
“We are especially pleased to welcome a number of new institutional investors onto the Blue Star register.
“We believe that this shows a growing market recognition of the tightening fundamentals within the global helium market, and most particularly within the world’s largest helium market, the United States.
“Following the grant of our Form 2A OGDP approval for the Enterprise 16#1 well, we are excited to be in the final phase of approval to commence drilling of our maiden helium exploration well.
“Blue Star continues to progress multiple further exploration well permits through the Colorado approvals process.
“The adoption of a rolling permitting strategy is designed to provide the business with significant flexibility around well selection and allow a sustained drilling program with a substantial degree of embedded responsiveness to respective drilling outcomes.”
Capital to support exploration and development
Blue Star’s latest cash injection will go towards:
- Expanding helium exploration well and water well drilling activities;
- Further key acreage leasing initiatives;
- Production development studies (surface, subsurface, resources, facilities); and
- Working capital.