Blue Star Helium (ASX:BNL) has extended its agreement covering all helium produced at the Piñon Canyon plant until 31 March 2027, as deliveries continue from its operation in Colorado, US.
The agreement was due to expire on 31 August 2026. Pricing remains fixed for the extended term, while the purchaser’s identity and pricing details remain confidential as of this writing. However, Blue Star notes the purchaser is the same US corporation involved as the company’s counterparty when the original agreement was announced on 4 June.
Blue Star has delivered its fourth tube trailer of helium and is filling a fifth, with trailer exchanges proceeding on schedule.
The plant processes gas from the Galactica Project in Las Animas County, Colorado. Joint venture partner Helium One Global (LSE:HE1) holds a 50% working interest.
Managing Director Trent Spry says the extension comes as the company continues discussions on longer-term offtake arrangements.
“We’re pleased to have a counterparty of this standing choose to continue supply from this plant as we progress through discussions of long-term arrangements. We see both as a meaningful validation of the plant output and project potential,” Spry says.
Blue Star says the extension provides continuity of delivery and revenue while broader negotiations progress.
The company’s operational priorities include maintaining consistent sales and cash flow, completing planned work to lift output towards the plant’s design capacity, and securing a commercial solution for the co-produced carbon dioxide.
Blue Star is an Australia-based helium explorer and producer with operations and exploration projects in North America.
Write to France Pinzon at Mining.com.au
Images: Blue Star Helium
