Jackson-29 Flow Test Results & Gas Analysis Update

§ Flow rate since TD has increased to over 320 thousand cubic feet per day ("Mcfd")

§ Early samples return helium concentration of up to 3.30% (air-corrected) and 48.66% CO2 in line with expectations

Details

The Jackson-29 well reached TD at 1,183 feet (361m) within the Upper Lyons Formation, encountering the Lyons Sandstone Formation at 1,122 feet (341m). As expected, water was not encountered during drilling of the Lyons Formation with wireline logs confirming the penetrated Lyons Sandstone Formation to be high-quality and gas saturated.

Flow testing since TD has revealed increasing natural flow rates, reaching approximately 320 Mcfd to-date. Strong pressure build-up post-testing indicates high permeability and good reservoir communication. Based on previous engineering studies, and observed flow rates, the projected stabilised flow rates constrained for production optimisation are expected to be between 350 Mcfd and 450 Mcfd, with a maximum of 550 Mcfd.

Initial laboratory analysis of gas samples from Jackson-29 showed a helium concentration up to 3.30% and 48.66% CO2 (and 48.04% nitrogen) in line with expectations.

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. Blue Star is advancing the Galactica project in joint venture with Helium One Global Ltd. Under the farm-in agreement, Helium One will fund the first US $450,000 of this well.