Jackson-2 Flow Test Results & Gas Analysis Update

§ Flow rate since TD has increased to over 250 thousand cubic feet per day ("Mcfd")

§ Early samples return helium concentration of up to 1.22% (air-corrected) and 77.77% CO2

Details

The Jackson-2 well reached TD at 1,232 feet (376m) within the Upper Lyons Formation, encountering the Lyons Sandstone Formation at 1,159 feet (353m). As expected, no water was 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 250 Mcfd to-date. Strong pressure build-up post-testing indicates high permeability and good reservoir communication. Based on the previous engineering study described below, and the observed flow rates, the projected stabilised flow rates constrained for production optimisation are expected to be between 300 Mcfd to 400 Mcfd, with a maximum of 500 Mcfd.

Initial laboratory analysis of gas samples from Jackson-2 showed a helium concentration up to 1.22% (air-corrected) and 77.77% CO2 (and 20.61% nitrogen). The well has tested the far southeastern extent of the Galactica project area. Understanding the flow potential and reservoir gas composition in this part of the field is key to defining the helium-CO2 development going forward.

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.

The analysis integrated results from the State-16 well with test data from the JXSN-1, JXSN-2, JXSN-3, and JXSN-4 discovery wells and compared it to public information from the adjacent Red Rocks development.