Key Highlights

  • The helium purchase and sales agreement, originally due to expire on 31 August 2026, has been extended to 31 March 2027
  • The extended agreement continues to cover all helium produced at the Pinon Canyon Plant
  • A fourth tube trailer of helium has been delivered, with a fifth currently being filled
  • Pricing under the extended agreement is fixed for the term and continues to reflect prevailing United States helium market conditions

Blue Star Helium Limited (ASX:BNL) (OTC:BSNLF) announced that the helium purchase and sales agreement it entered into with its offtake partner, first announced on 4 June 2026, has been extended. The agreement was due to expire on 31 August 2026 and now runs to 31 March 2027. The counterparty is unchanged from the entity described in the company's 4 June 2026 announcement, and the company said the pricing terms and the identity of the purchaser remain confidential in accordance with standard industry practice. Blue Star said it does not consider the counterparty's identity to be information that a reasonable person would expect to materially affect the price or value of its securities.

The extended agreement continues to cover any and all helium produced at the Pinon Canyon Plant, the processing Facility for the Galactica Project, which is undertaken as a joint venture with Helium One Global Ltd, holder of a 50% working interest in the project. Pricing under the extended term is fixed and continues to reflect prevailing United States helium market conditions.

Operational Update

Separately, the company confirmed that a fourth tube trailer of helium has been delivered from the Pinon Canyon Plant, located at the Galactica Project in Las Animas County, Colorado, with a fifth trailer currently being filled. The company said ongoing trailer exchanges continue to proceed on a scheduled basis.

Managing Director and CEO Trent Spry said commercial operations with the offtake partner continue to strengthen to the satisfaction of both parties, and that extending the agreement through the first quarter of 2027 secures continued Volume delivery from Pinon Canyon. He said the company views the extension, together with the counterparty's decision to continue Supply from the plant, as validation of the plant's output and the project's potential, while discussions on a longer-term offtake arrangement continue separately.

Company Priorities

Blue Star said its focus remains on consistent sales and Cash Flow while it progresses work aimed at lifting plant output toward design capacity, alongside efforts to secure a commercial solution for co-produced carbon dioxide from the operation.

Conclusion

The extension of Blue Star Helium's offtake agreement through the first quarter of 2027 provides continuity of Revenue from the Pinon Canyon Plant while the company continues to negotiate longer-term supply arrangements with its counterparty. With a fourth trailer delivered and a fifth in progress, the company described deliveries from the plant as now routine, with its near-term focus centred on lifting output toward design capacity and finding a commercial outlet for the operation's co-produced carbon dioxide.