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Big Star secures its first US oil and gas lease

Energy
ASX:BNL      MCAP $10.77M
21 August 2019 23:32 (AEDT)

Big Star Energy has secured its first oil and gas lease over the ‘Enterprise’ helium prospect in the U.S.

This acquisition is in line with Big Star’s ongoing prospect generation program which is targeting helium-rich areas in the Mountain States region of North America. These areas contain helium which has previously produced to surface in high concentrations of between two and 10 per cent of the raw gas stream.

The acquisition comprises an initial lease of 1800 gross acres for five years with an option to acquire up to 5000 gross acres.

“Onshore USA is a great location for helium exploration with a long history of high concentration helium production going back to the 1920s and a well developed supply chain and market,” Managing Director Joanne Kendrick said.

The company has high hopes for another helium discovery in this region.

“A helium discovery in the Mountain States region could potentially be brought into production within 6 months using modular, off-the-shelf technology,” Joanne said.

Big Star has conducted a regional analysis of this area and identified 30 unleased prospects and leads, including Enterprise.

“We intend to continue adding to the leasing position over Enterprise and several other prospects over the next several months,” Joanne stated.

A technical program is underway at Enterprise and surrounding prospects. The company expects to have several prospects ready for drilling permitting in early 2020.

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