JXSN#4 FLOWS HELIUM (6.5% He) TO SURFACE GALACTICA/PEGASUS

Highlights

• JXSN#4 exploration well completed in Blue Star's Galactica/Pegasus prospect.
• Analysis of gas obtained during drilling shows a calculated air-free gas composition of 6.5% helium in the Lyons formation.
• Both the upper and lower Lyons sands are gas charged with helium.
• JXSN#4 is the fourth consecutive well on the Galactica prospect to identify helium in the targeted Lyons formation.

PERTH, Australia, Sept. 29, 2022 /PRNewswire/ -- Blue Star Helium Limited (ASX:BNL) (Blue Star or the Company) provides an update on the JXSN#4 exploration well drilled on its Galactica prospect in Las Animas County, Colorado.

The well was successfully drilled to a final total depth (TD) of 1,043 feet on 27 September encountering both the upper and lower Lyons sands, which both flowed gas to surface.

Preliminary gas composition analysis shows 6.5% helium (He). Additional gas samples collected during operations will also be delivered to a second laboratory for composition analysis, which is expected to be returned within the next two weeks.

The upper Lyons sand was encountered at a measured depth of 756 feet and appears to be gas filled down to the base of the sand at 859 feet. The lower Lyons sand was encountered at 898 feet and also flowed gas to surface. The well TD'ed at the base of the lower Lyons. Wireline log interpretation is expected by the end of next week to determine if any gas-water-contacts (GWCs) were encountered in the well.

Three exploration wells drilled earlier this year at Galactica/Pegasus – JXSN#1, JXSN#2 and JXSN#3 – discovered significant helium bearing gas columns of up to 230 feet containing up to 3.14% helium (refer Table 1). These wells also proved the Company's previous interpretations of gas on logs at historic wells, Denton B #1 and Colorado #B-1, also located on the Galactica/Pegasus structure.

Blue Star Managing Director and CEO, Trent Spry, commented:

"Our exploration program at Galactica/Pegasus prospect continues to deliver. We are delighted to have returned high-concentration helium from a fourth consecutive exploration well in this area.

"The result reconfirms Galactica/Pegasus as one of our high-priority development areas in Las Animas. This dynamic is reflected in our current development well scheduling activities for this field.

The results of this well will be integrated into current resource update process for Galactica/Pegasus which is expected to culminate in the declaration of contingent resources for this field."