Jackson-4 Spud at Galactica Project

§ Currently preparing to drill intermediate hole section

Details

The Company is pleased to announce the spudding of the Jackson-4 development well at its Galactica helium project in Las Animas County, Colorado.

The shallow conductor section has been set. BOPs are being installed and tested to drill through the intermediate hole section. After casing at the base of the intermediate section, the well will target the Lyons Sandstone Formation, with Target Depth ("TD") planned within the Upper Lyons Formation gas reservoir.

When TD is reached, wireline logging will then be conducted, followed by flow and pressure readings at the wellhead. This data will be used to estimate the production potential of the well based on the production model.

Jackson-4 is anticipated to be completed and ultimately tied-in to production facilities.

Galactica/Pegasus Development

The Galactica project forms part of the broader Galactica/Pegasus development, discovered by Blue Star in 2022. This large-scale project offers multiple potential product streams. Four existing discoveries at Galactica/Pegasus (JXSN-1 to JXSN-4) have delivered gas flows of 125 to 412 thousand cubic feet per day ("Mcfd") to 412 Mcfd with high helium concentrations of between 2.0% and 6.1%

Blue Star further appraised the discovery with the State-16 well which was drilled in June 2024. Independent engineering consultants advised that State-16 is capable of producing up to 441 Mcfd with more stabilised rates constrained for production optimisation, projected to be between 250 Mcfd and 350 Mcfd. The well tested 1.9% helium and logs identified 96+ feet of gas column in the Lyons Sandstone Formation.

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