Blue Star Helium Limited is advancing its Galactica helium project in Colorado, aiming for initial commercial production by December 2025, supported by a recent A$4.5 million equity raise.
- Galactica Project progressing to initial commercial helium production
- First helium output scheduled for December 2025
- Two-tranche equity placement raised A$4.5 million before costs
- Decision not to exercise option on Great Plains Field assets
- Detailed flow testing confirms promising helium well performance
Galactica Project Nears Production Milestone
Blue Star Helium Limited (ASX – BNL) has provided a comprehensive update on its activities for the quarter ended 30 September 2025, highlighting significant progress on the Galactica helium project located in Animas County, Colorado. The company is advancing the initial stage of commercial helium production, with first output scheduled for December 2025. Preparatory work for the processing facility is nearing completion, with key equipment selected and installation readiness confirmed.
The Galactica project, operated in joint venture with Helium One Ltd, has seen successful drilling campaigns targeting multiple helium development wells. Flow testing results from these wells demonstrate promising helium concentrations and flow rates, underpinning the company’s confidence in ramping up production. The initial phase will tie in seven wells to the Pinon Canyon helium and CO2 processing plant, which is on track for commissioning.
Strategic Decisions and Portfolio Management
In a strategic move, Blue Star elected not to exercise its option on the Great Plains Field assets in Lincoln County, Colorado, following a rigorous technical and commercial evaluation. This decision allows the company to focus capital and operational efforts on the Galactica project, which offers a clearer path to near-term production and cash flow generation.
Alongside operational progress, Blue Star successfully completed a two-tranche equity placement, raising A$4.5 million before costs. This capital injection strengthens the company’s balance sheet, which stood at A$1.905 million at the end of the quarter, and supports ongoing development activities. The placement attracted strong support from sophisticated and institutional investors, including participation from company directors.
Phased Development and Future Growth
Blue Star is executing a staged development approach for the Galactica-Pegasus project. Stage 1 focuses on establishing commercial helium production capacity, with subsequent stages targeting expansion of production throughput and CO2 commercialization. The company is also exploring opportunities to unlock additional resources within the broader acreage, including the Serenity prospect, which has shown super-rich CO2 concentrations.
The company’s engineering studies and flow testing underpin a robust development plan, with projected stabilized helium flow rates from wells ranging between 250 to 450 thousand standard cubic feet per day. These metrics are critical for optimizing plant design and operational efficiency as Blue Star moves towards full-scale production.
Financial and Operational Outlook
Blue Star’s financial management during the quarter reflects a disciplined approach to capital deployment, balancing exploration, development, and corporate costs. The company reported net cash used in operating activities of A$823,000 and investing activities of A$1.858 million, primarily directed towards project development and lease acquisitions. With no debt facilities drawn, Blue Star maintains a clean balance sheet heading into the commissioning phase.
Looking ahead, the company remains focused on meeting its December 2025 production target, progressing regulatory approvals, and securing offtake agreements to ensure market access for its helium and CO2 products. The evolving helium market dynamics and Blue Star’s positioning as a low-cost, high-grade helium producer in the US place it well to capitalize on growing demand.
Bottom Line?
Blue Star Helium’s December 2025 production target sets the stage for a pivotal phase in its growth trajectory.
Questions in the middle?
- Will Blue Star secure long-term offtake agreements ahead of production start?
- How will helium market pricing trends impact project economics post-commissioning?
- What are the timelines and risks associated with regulatory approvals for full-scale operations?