Gas Findings Unveiled by Blue Star Helium in Galactica Initiative

Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) (Blue Star or the Company) announces the successful completion of drilling the State 16 SWSE 3054 development well at its Galactica helium project in Las Animas County, Colorado, reaching its final total depth (TD). The production section of the well was drilled according to the planned procedure using air.

The well intersected the Lyons formation at a depth of 1,111.5 feet and reached its intended total depth (TD) at 1,211 feet, situated at the base of the upper sand within the Lyons formation.

Notably, there were no instances of encountering water during the drilling process. Wireline logs corroborated this, indicating around 96 feet of premium-quality sands within the upper Lyons production zone (ranging from 1,111.5 to 1,211 feet) to be saturated with gas.

The well exhibited natural flow throughout the drilling process and has been undergoing a "cleaning-up" phase, gradually returning drilling gas and approaching the composition and conditions of reservoir gas since drilling operations concluded.

Throughout drilling operations and while flowing at the total depth (TD), the onsite mass spectrometer detected higher-than-normal levels of helium, as anticipated, despite substantial air dilution resulting from drilling activities.

Throughout drilling operations and while flowing at the total depth (TD), the onsite mass spectrometer detected higher-than-normal levels of helium, as anticipated, despite substantial air dilution resulting from drilling activities.

The Company is set to begin pressure and flow testing, which includes a pressure gradient test, followed by flow testing, sampling, and a pressure build-up test scheduled over five days.

After successful final testing and analysis, the well will undergo completion for integration into production facilities. Commercial negotiations with potential buyers have been underway since the fourth quarter of 2023.

The Galactica project is a component of the broader Galactica/Pegasus development, which Blue Star discovered in 2022. This development encompasses a significant project with various potential product streams. Through exploration wells JXSN#1 to JXSN#4, Blue Star has already identified four existing discoveries at Galactica/Pegasus, yielding gas flow rates ranging from 125 to 412 mcf/d and displaying high air-corrected concentrations of helium ranging from 2.0% to 6.1%.

Helium stands out as an industrial gas, showcasing attributes of both a widespread, commodity gas and a premium, specialty gas, thus earning its status as a "high-tech" strategic element. Its distinct chemical and physical properties render helium indispensable in various critical applications such as MRI and semiconductor manufacturing, as well as in the production of fiber optic cables, hard discs, cooling systems, space exploration, rocket propulsion, lifting operations, and advanced scientific research. Unlike many gases, helium cannot be artificially manufactured, and the majority of global reserves are obtained as a byproduct of natural hydrocarbon gas extraction.

Blue Star Helium Ltd is a helium exploration company operating independently and based in Australia, actively conducting exploration and operations in North America. The company's focus lies in discovering and advancing new sources of high-quality helium at competitive costs within North America.