Blue Star Helium Limited
And Controlled Entities
ABN: 49 623 130 987
ANNUAL REPORT
For the Year Ended 31 December 2024
CONTENTS
Blue Star Helium Limited and Controlled Entities
CORPORATE DIRECTORY
1
CHAIRMAN’S LETTER TO SHAREHOLDERS
2
DIRECTORS’ REPORT
4
CORPORATE GOVERNANCE
23
AUDITOR’S INDEPENDENCE DECLARATION
24
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
25
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
27
CONSOLIDATED STATEMENT OF CASH FLOWS
28
NOTES TO THE FINANCIAL STATEMENTS
29
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
57
DIRECTORS’ DECLARATION
58
INDEPENDENT AUDITOR’S REPORT
59
SHAREHOLDER INFORMATION
64
LIST OF INTERESTS
67
CORPORATE DIRECTORY
Blue Star Helium Limited and Controlled Entities
1
DIRECTORS
Neil Rinaldi
Non-Executive Chairman
Trent Spry
Managing Director and Chief Executive Officer
Gregg Peters
Non-Executive Director
SECRETARY
Amanda Wilton-Heald
REGISTERED OFFICE
Level 8, London House
216 St Georges Terrace
Perth WA 6000
BUSINESS OFFICE
194 Hay Street
Subiaco WA 6008
Telephone: +61 8 9481 0389
Facsimile: +61 8 9463 6103
WEBSITE & EMAIL
www.bluestarhelium.com
info@bluestarhelium.com
SHARE REGISTRY
Automic Registry Services Pty Ltd
Level 5
191 St Georges Terrace
Perth WA 6000
Telephone: +61 8 9324 2099
AUDITORS
Stantons
Level 2
40 Kings Park Road
West Perth WA 6005
STOCK EXCHANGE LISTING
Australian Securities Exchange
ASX Code: BNL
OTC Markets
OTC: BSNLF
CHAIRMAN’S LETTER TO SHAREHOLDERS
Blue Star Helium Limited and Controlled Entities
2
Dear Shareholders,
I am pleased to provide you with Blue Star Helium’s Annual Report for the financial year ended
31 December 2024. It has been a transformational year for the Company marked by
meaningful advances at our helium development at Galactica/Pegasus, and the delineation of
new growth opportunities in Colorado to augment our high-quality helium asset portfolio in
Las Animas County.
In May 2024, we commenced stage one development works at Galactica/Pegasus through the
successful drilling of our first development well at State 16 SWSE 3054 (State 16).
State 16 returned a significant helium discovery with helium concentrations containing an
average 1.65% helium from the lab, and up to 1.90% air corrected. Notably, this gas
composition also consisted of up to 28.54% nitrogen and 69.56% carbon dioxide (CO2). At
these CO2 content levels, we recognised both a significant and scalable opportunity to deliver
a valuable additional gas product to end-users in critical markets that are undersupplied with
reliable, sustainable CO2 streams. Subsequent to the year end, the Company announced that
further recent samples tested returned a helium increased concentration of 2.17%.
CO2 purification technology overlaps significantly with the processes necessary to harness
high-grade helium. As a result, Blue Star is currently planning for the raw gas volumes from
Galactica/Pegasus, from several proposed development wells will flow first into a CO2
processing plant prior to feeding what is then helium-enriched feed gas into a helium
processing plant.
The scale of this opportunity to augment our projected helium revenues prompted us to add
CO2 to our industrial gas portfolio in June 2024. It also warranted a reassessment of our
existing assets portfolio for complementary CO2 opportunities. This culminated in the
acquisition of full ownership of the mineral leases pertaining to the Serenity Prospect from
Vecta Oil & Gas Ltd and all other partners.
Similarly, the Sammons 315310C well, which was previously drilled and tested at Serenity in
Q3 2022, contained a combined average composition from both the upper and lower Lyons
reservoirs of 98.77% carbon dioxide, 1.15% nitrogen and 0.09% helium. The lower Lyons
reservoir, by itself, showed consistently high CO2 concentrations of up to 98.95%. These
outstandingly high raw gas concentrations are ideal for producing premium, industrial-grade
CO2 product.
Our operations at Galactica/Pegasus are situated within close proximity to the neighbouring
Red Rocks Helium Project, located approximately 3 miles to the northwest. The recent
development of Red Rocks, which utilises its own third-party commercialisation strategy
through an IACX midstream leased process facility arrangement, highlights the viability of this
strategy and its de-risking benefits for our proposed pathway at Galactica/Pegasus.
Blue Star has always maintained operational flexibility, seeking to deliver the greatest value
outcomes for our shareholders by capitalising on short- and long-term opportunities, if and
when they emerge. We have evidenced this several times over the journey and believe that
harnessing and monetising this CO2 product stream is also technically and commercially
foundational to achieving our core helium development objectives at Galactica/Pegasus.
CHAIRMAN’S LETTER TO SHAREHOLDERS continued
Blue Star Helium Limited and Controlled Entities
3
The Galactica/Pegasus project represents an immediate pathway to production with excellent
long-term scalability to our other growth objectives at Las Animas. We are excited that our
belief in this world-class helium opportunity was affirmed in late 2024 through the completion
of a strategic 50% farm-in agreement with Helium One Global (Helium One).
Helium One shares our conviction as a fellow helium explorer and developer. In addition to a
US$1.5 million payment in consideration for past costs, Helium One will fund the drilling of six
development wells at Galactica/Pegasus, capped at US$450,000 per well. This initial six well
drilling programme, together with State-16, is expected to form the initial gas gathering
system into the proposed helium production facility. While drilling operations on-site will be
mostly funded and backed by Helium One, Blue Star, through its local operating entity, will
continue to act as Operator of the project.
Drilling of the second and third development wells (the first under the Helium One earn-in),
Jackson 31 SENW 3054 (Jackson 31) and Jackson 04 L4 3154 (Jackson 4), has already been
successfully completed with confirmed natural gas flows and no water encountered in the
target zone of each well.
Another opportunity to diversify and enhance our North American helium asset portfolio
emerged late in the year through the securing of options to purchase helium and oil & gas
assets in Lincoln and Cheyenne Counties, Colorado. These assets include numerous discovery
wells that can be recompleted in zones where helium has been previously discovered.
Well testing activities under the option period over this acreage have now commenced, which
will be crucial in validating historic helium concentration results of 1.36% to 2.02% and initial
raw gas flow rates of 5,000 to 10,000 Mcfd.
The Lincoln/Cheyenne County assets offer a robust, low-capex development opportunity, and
we are currently evaluating potential acquisition funding options, including debt and/or
strategic JV partnerships, prior to targeted exercise of these options (subject to satisfactory
well testing due diligence activities).
On behalf of the Board and management of Blue Star, I wish to thank you for your continued
dedication and support over the journey. Our business is always looking forward, and we
believe the coming year offers strong outcomes for all shareholders. Working closely with
Helium One, we now possess a solid runway to advance Galactica/Pegasus into first
production, which remains slated for H1 2025. We hope you stay tuned as we continue to
rapidly build towards being the next supplier of high-grade, low-cost helium in the United
States.
____________________
Neil Rinaldi
Non-Executive Chairman
28 March 2025
DIRECTORS’ REPORT
Blue Star Helium Limited and Controlled Entities
4
The Directors present their report, together with the financial statements, on the consolidated
entity (referred to hereafter as the 'Consolidated Entity') consisting of Blue Star Helium
Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled
at the end of, or during, the year ended 31 December 2024 (‘FY24’).
DIRECTORS
The following persons were Directors of Blue Star Helium Limited during the whole of the
financial year and up to the date of this report, unless otherwise stated:
Name
Title
Neil Rinaldi
Non-Executive Chairman
Trent Spry
Managing Director and Chief Executive Officer
Gregg Peters
Non-Executive Director
PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Entity during the year ended 31 December 2024
were helium exploration. The Company is headquartered in Australia and its strategy is to
provide its shareholders with exposure to multiple high-value helium projects in North
America.
REVIEW OF RESULTS
The loss after tax for the year ended 31 December 2024 was $13,063,172 (2023: loss of
$3,125,659).
The earnings of the Consolidated Entity for the past financial periods are summarised below:
31 December
2024
$
31 December
2023
$
31 December
2022
$
Revenue (including other income)
35,795
68,947
39,836
EBITDA
(11,079,395)
(3,115,867)
(6,012,531)
EBIT
(11,840,242)
(3,125,607)
(6,016,742)
Loss after income tax
(13,063,172)
(3,125,659)
(6,016,745)
The factors that are considered to affect total shareholders return are summarised below:
31 December
2024
$
31 December
2023
$
31 December
2022
$
Share price at financial period end
0.004
0.022
0.04
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
5
Operating Review
Galactica / Pegasus Projects
In January 2024, the ECMC approved the OGDP relating to four proposed helium development
wells at the Galactica/Pegasus project. This allowed Blue Star to submit final drilling permit
applications. The approved wells offset the discoveries at Blue Star’s JXSN#1, JXSN#2 and
JXSN#4 exploration wells. By the end of the first quarter, Blue Star had 11 approved helium
development locations, four of which were fully approved for drilling at Galactica/Pegasus.
During the second quarter, Blue Star's primary focus was on the drilling of the State 16 SWSE
3054 development well at the Galactica/Pegasus project. The well, located 3 miles southeast
of the producing Red Rocks project, encountered the Lyons formation at 1,111.5 feet and was
completed at 1,211 feet, with no water encountered. Wireline logs showed approximately 96
feet of gas-saturated, high-quality sands in the upper Lyons production section. Lab analysis
of reservoir samples showed an average helium percentage of 1.65%, and up to 1.90% when
air-corrected. The reservoir gas composition was approximately 1.90% helium, 28.54%
nitrogen and 69.56% carbon dioxide when air-corrected. Flow testing showed the well would
naturally flow at a sustained rate of 150 Mcfd and with vacuum compression, rates of 285
Mcfd were achieved. Subsequent to the year end, additional gas samples, taken from the well
head, returned a significant rise in helium concentration to 2.17% (not air-corrected). This
increase is attributed to the reservoir's natural equilibration process near the well bore. This
increase in helium content could be expected from all historic wells.
Subsequent to the end of the second quarter, the State 16 well results were integrated with
test data from the JXSN#1-#4 wells. The calculated permeability for the Lyons formation at
State 16 was 405 mD, with a potential maximum flow rate of 441 Mcfd at a wellhead pressure
of 6 psia. Stabilized flow rates estimated based on varying vacuum compression levels for the
State 16 well were calculated to be 250 Mcfd to 350 Mcfd. These rates represent constrained
rates to maximise the initial production rate plateau which is standard practice in gas
developments to maximise recovery and reservoir pressure maintenance while providing a
more constant feed rate to be achieved through the plant. The State 16 well was completed
awaiting potential tie-in to production facilities. Blue Star also filed a new OGDP for 5
additional development wells located to the south and southwest of State 16.
In the third quarter, Blue Star announced a landmark farm-in agreement with Helium One for
a 50% interest in Galactica/Pegasus. Helium One agreed to pay US$1.5 million to Blue Star and
fund the drilling of six development wells (up to US$450,000 per well and thereafter shared
equally with Blue Star). Blue Star would remain the operator, with first helium production
expected in the first half of 2025. By the end of the third quarter, Blue Star had 16 approved
helium development locations at Galactica/Pegasus, of which three were fully approved for
drilling. The Colorado Energy and Carbon Management Commission (ECMC) approved the
OGDP I for five additional well locations, and subsequently approved final applications to drill
bringing the number of fully approved wells to eight. The initial six-well drilling program
funded by Helium One, along with State 16, is expected to form the initial gas gathering system
for the Phase 1 helium production facility.
Subsequent to the year end, the Company completed drilling two of the newly permitted
wells, the Jackson 31 SENW 3054 well and the Jackson 04 L4 3154 well. The first of these wells,
the Jackson 31 well, reached total depth (TD) at 1,210 feet within the upper Lyons Formation,
encountering the Lyons Sandstone at 1,153 feet. As expected, no water was encountered
during drilling of the Lyons Sandstone with wireline logs confirming the penetrated Lyons
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
6
sands to be high-quality and gas saturated. Flow testing since TD has revealed increasing
natural flow rates, reaching approximately 250 Mcfd. Strong pressure build-up post-testing
indicates high permeability and good reservoir communication. Based on previous
engineering analysis, and the observed flow rates, the projected stabilised flow rates
constrained for production optimisation are expected to be between 300-400 Mcfd, with a
maximum of 500 Mcfd. Initial laboratory analysis of gas samples from Jackson 31 showed a
helium concentration of up to 2.2% (air corrected) (up to 1.90% not air corrected). Based on
recent equilibrated samples from the State 16 well, which showed a helium concentration of
2.17% (not air corrected), the reservoir helium concentration at Jackson 31 could equilibrate
to around 2.3% to 2.5%.
The second of these wells, the Jackson 04 L4 3154 well, encountered the Lyons Formation at
a depth of 1,198 feet and was completed deliberately 62 feet into the upper sand of the Lyons
Formation at 1,260 feet (TD). The well exhibited strong naturally flow during drilling and at TD
in line with the recent Jackson 31 observations. Significantly, no water was encountered
during drilling of the Lyons Formation. Wireline logs confirmed this. Based on offset wells we
expect the entire upper Lyons to be gas saturated as well as a significant portion of the lower
Lyons sand. This well targeted the highest quality sandstone at the top of the upper Lyons
Formation which is well connected to the entire gas column. During the natural flow of the
well early gas samples were taken (note, these will be contaminated by air-drilling and will
require air-correction) and are being delivered for laboratory analysis of helium and CO2
concentrations.
In the fourth quarter, Blue Star finalized the farm-in agreement with Helium One.
Strategic Helium Acquisition
In the fourth quarter, Blue Star secured options to purchase helium and oil and gas assets in
Colorado. These assets include existing wellbores with historic helium concentrations of
1.36% to 2.02% and initial raw gas flow rates of 5,000 to 10,000 Mcfd. The assets also include
production infrastructure, plant site, the Kregel well tied into the Ladder Creek helium
liquefaction facility, and 283 square miles of 3D seismic data. Blue Star was evaluating funding
options for the acquisition.
Serenity Project
During the second quarter, Blue Star increased its ownership in the Serenity project to 100%.
Serenity is a source of high-grade carbon dioxide, with raw gas concentrations approaching
98-99%. A small-scale production facility for Serenity is being considered, which is expected
to process 500 Mcf/d of raw gas and produce over 20 tons per day of beverage-grade CO2.
Blue Star continues to advance plans for the Serenity CO2 project.
Voyager Project
During the first quarter of 2024, Blue Star Helium drilled two development wells, BBB #33 and
Bolling #4 SESW, at the Voyager prospect. The BBB #33 well was drilled to 935 feet, reaching
approximately 51 feet into the top of the Lyons formation. Wireline logs confirmed the high
quality of the Lyons sand, with an average porosity of approximately 28%, and that the
reservoir was gas-filled. No movable water was observed. Initial evaluation showed limited to
no flow, and well pressures were minimal, which was considered anomalous given the gas
saturation. The Bolling #4 SESW well was drilled to 922 feet, about 48 feet into the Lyons
formation, with similar results, including an average porosity of 27% and gas saturation. Initial
flow and pressure outcomes were similar to BBB#33.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
7
Post-well evaluation activities commenced for both wells. At BBB #33, gas flow to the surface
was achieved by applying a small vacuum during an 8-hour test. The gas contained
approximately 3.0% helium, 92.4% nitrogen, and 4.6% carbon dioxide. At Bolling #4 SESW, a
variable vacuum test over 24 hours resulted in gas containing approximately 4.1% helium,
83.1% nitrogen, and 12.8% carbon dioxide. The data confirmed the flow potential of the Lyons
reservoir on compression. However, the need for compression earlier than expected had
significant implications for forecast production volumes and operating cost estimates. Blue
Star paused development of the Voyager project, including the planned installation of a leased
helium processing plant, to evaluate revised project economics. Independent engineering
reports still forecasted multiple scenarios delivering a profitable project, but development of
Voyager was no longer expected to be the highest-returning project. A full review of
commercialization pathways was initiated, including connection to grid power and various gas
processing solutions. Remapping of Voyager was also planned, considering potential pressure
leak points and top seal potential.
CORPORATE
Capital raising activities
Blue Star successfully completed an equity placement during the year, raising new funds of
approximately A$3 million (before costs).
Business Risks
Our business involves a high degree of risk. If any of the following risks, or any risk described
elsewhere in this Annual Report, actually occurs, our business, financial condition, or results
of operations could suffer. The risks described below are not the only ones facing us.
Additional risks not presently known to us or which we currently consider immaterial also may
adversely affect us.
The drilling for and producing of helium are high risk activities. There are many uncertainties
that could adversely affect our business and financial condition. Many of our decisions to
undertake operations are based on geophysical and geological analysis and engineering
studies that are often times inconclusive.
The process of estimating helium resources is complex and requires interpretation of
incomplete data and many assumptions. The risk that these interpretations differ from actual
results can significantly impact the ultimate resource available and the number of potential
development well locations.
The cost to drill, complete and operate wells and to install and operate a helium processing
facility is often uncertain before operations commence. This can lead to budget overruns and
result in a particular project being uneconomic. Additionally, the continuing or worsening
inflationary pressures, particularly in the Unites States, could result in increases in our cost of
goods, services, and personnel which in turn could cause our capital expenditures and
operating costs to rise.
With limited production data in our area of operations well results could differ materially from
our expectations.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
8
We are highly dependent on many third parties to execute our plans for development of the
asset. These third parties include but are not limited to service providers for drilling,
completion, production, and construction services, equipment providers, and local, state, and
federal regulatory agencies in the United States.
We are subject to health, safety, and environmental laws and regulations that may expose us
to significant costs and liabilities.
Evolving legislation or regulatory initiatives, especially in the state of Colorado, could result in
increased costs and additional operating restrictions or delays.
While the impact of tariffs currently being implemented in the United States is unclear, there
is a risk that they could increase operating costs.
Pricing in the helium markets is opaque and largely set by private party contracts. Therefore,
the prices we receive are at risk of being significantly different than we assumed. Additionally,
changes in the supply/demand balance due to new or returning sources of supply or economic
downturns could adversely affect the prices we are able to receive for helium.
The market for all labour in Colorado is competitive and the Company must compete to attract
and retain key employees.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in Blue Star’s state of affairs during the year other than the
results of the Voyager drilling programme, the farm in agreement with Helium One Global
Limited and the capital raising activities each of which is more fully described in the Review of
Operations.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Consolidated Entity is undertaking activities to permit further helium wells.
Blue Star Helium Limited has secured leases in Las Animas County, Colorado, USA over a
number of prospects and leads to develop and deliver its helium strategy. This leased acreage
is intended to support a drilling programme in the 2024 calendar year.
The Consolidated Entity is undertaking activities to install its maiden helium processing facility
at the Galactica Project and commence helium production in the 2025 calendar year.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
9
DIRECTORS’ QUALIFICATIONS AND EXPERIENCE
The Directors’ qualifications and experience are set out below.
Current Directors
Director
Details
Neil Rinaldi
Position
Non-Executive Chairman
Appointment Date
14 April 2021
Resignation Date
N/A
Length of Service
3 years 11 months
Biography
Mr Rinaldi is an executive leader and finance professional with over
20 years’ experience. He has considerable expertise in capital raising,
asset acquisition and disposals, company structuring and positioning
companies for growth. Mr Rinaldi was previously the Chief Executive
Officer of International Graphite, which is an unlisted downstream
graphite processing business with operations in Collie and Springdale
(Ravensthorpe), Western Australia. Prior to this, Mr Rinaldi was a
non-executive director of Brainchip Holdings Limited, an artificial
intelligence business, and an Executive Director of Aziana Limited, a
multi-commodity exploration business with assets in Madagascar and
Louisiana. Prior to that, Mr Rinaldi was the Managing Director of
Truestone Capital Limited, a London based corporate advisory firm
focused on delivering results for companies in the Australian
resources sector. He commenced his professional career as an
Investment Advisor at Hartleys Limited.
Current ASX Listed
Directorships
None
Former ASX Listed
Directorships within
last 3 years
None
Trent Spry
Qualifications
BSc (Hons), AICD
Position
Managing Director and Chief Executive Officer
Appointment Date
29 April 2019
Resignation Date
N/A
Length of Service
5 years 11 months
Biography
Trent brings to the Board significant ASX corporate experience,
expertise in geoscience, exploration and project development as well
as significant experience in the USA. Trent has over twenty years of
experience in the upstream oil, gas and helium industry in
exploration, appraisal and development. He holds a Bachelor of
Science (Hons) (National Centre for Petroleum Geology & Geophysics,
University of Adelaide) and is a graduate of the Australian Institute of
Company Directors. He has originated numerous projects from
concept or acquisition through to discovery, appraisal, successful
development and exit in Australia, SE Asia, the Gulf of Mexico and the
US onshore.
Current ASX Listed
Directorships
None
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
10
Former ASX Listed
Directorships within
last 3 years
None
Gregg Peters
Qualifications
Bachelor's degree in marketing from Valparaiso University and an
MBA in Operations from Loyola University
Position
Non-Executive Director
Appointment Date
10 September 2023
Resignation Date
N/A
Length of Service
1 year 6 months
Biography
Gregg brings a proven track record of commercial leadership in the
industrial gas sector with over 30 years of direct market experience.
Most recently he was Helium Director, North America for Linde PLC
(Praxair Inc.). Gregg managed all aspects of commercial helium
operations (from mid-2010), including price strategy, contracting,
client portfolios, supply system development, as well as marketing
and technical support to operating business units, distributors, and
end-users across all modes of supply, liquid and gaseous. Previously,
Gregg spent six years as Director of Industrial Gas for Praxair Inc.’s
packaged gas business, responsible for the financial performance and
development of all gas products, including atmospherics, fuel gases,
and CO2 (responsible for both the industrial and BevCarb segments),
and the rapid expansion of the MicroBulk initiative. Currently, he is
COO for the Edelgas Group and Managing Director of Disruptive
Resources, LLC. Gregg is based in the United States. He holds a
Bachelor's degree in Marketing from Valparaiso University and an
MBA in operations from Loyola University.
Current ASX Listed
Directorships
None
Former ASX Listed
Directorships within
last 3 years
None
COMPANY SECRETARY
Company Secretary
Details
Amanda Wilton-Heald
Qualifications
BCom, CA
Position
Company Secretary
Appointment Date
4 September 2020
Resignation Date
N/A
Biography
Amanda Wilton-Heald is a Chartered Accountant with over 20 years
of accounting, auditing (of both listed and non-listed companies) and
company secretarial experience in both Australia and the UK.
Amanda has been involved in the listing of junior explorer
companies on the ASX and has experience in corporate advisory and
company secretarial services.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
11
MEETINGS OF DIRECTORS
The number of meetings held during the year and the number of meetings attended by each
Director was as follows:
Board Meetings
Number of Meetings Held
7
Number of Meetings Attended:
Neil Rinaldi
7
Trent Spry
7
Gregg Peters
7
All Directors were eligible to attend all Board Meetings held when they were in office.
SHARE OPTIONS
As at the date of this report:
No. Options
Exercise Price
Expiry Date
Listed / Unlisted
468,914,401
$0.01
30-Oct-26
Unlisted
9,000,000
$0.028
11-Sep-27
Unlisted
PERFORMANCE RIGHTS
As at the date of this report:
No. Performance
Rights
Tranche
Expiry Date
Listed / Unlisted
Vested / Unvested
14,200,000
3
07-Jul-24
Unlisted
Vested
2,000,000
5
18-May-25
Unlisted
Unvested
Refer to page 47-48 for the terms and conditions that apply to each of the Performance
Rights.
SHARES ISSUED AS A RESULT OF THE EXERCISE OF OPTIONS OR CONVERSION OF
PERFORMANCE RIGHTS
Nil shares issued as a result of the exercise of the options were issued as at the date of this
report. 2,620,018 shares issued as a result of the conversion of performance rights as at the
date of this report.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
12
REMUNERATION REPORT (AUDITED)
The remuneration report below reflects the remuneration policies that were adopted by the
Directors of the Company who were in office at the date of this report.
The Remuneration Report is set out under the following main headings:
1. Principles used to determine the nature and amount of remuneration;
2. Key management personnel remuneration;
3. Service agreements; and
4. Shareholding and option holding of Directors and other key management personnel.
The information provided under headings 1 to 4 below in the Remuneration Report has been
audited as required by Section 308(3C) of the Corporations Act 2001.
1. Principles used to determine the nature and amount of remuneration (audited)
The Company’s Constitution specifies that subject to the initial fixed annual aggregate sum of
$500,000, the aggregate remuneration of Non-Executive Directors shall not exceed the sum
determined by the shareholders of the Company in general meeting.
The Company may pay a performance-based bonus based on key performance indicators of
the Director and Company, set by the Company from time to time, and any matter that it
deems appropriate. $Nil was paid to an independent remuneration consultant during the
year.
Fees and payments to Directors:
are to reflect the demands which are made on, and the responsibilities of, the
Directors; and
are reviewed annually by the Board to ensure that Directors’ fees and payments are
appropriate and in line with the market.
Retirement allowances and benefits for Directors
There are no retirement allowances or other benefits paid to Directors.
Directors’ fees
The amount of remuneration of the Directors of the Company (as defined in AASB 124 Related
Party Disclosures) are outlined in the table below under the heading Key management
personnel remuneration.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
13
Key management personnel
Name
Title
Neil Rinaldi
Non-Executive Chairman
Trent Spry
Managing Director and Chief Executive Officer
Gregg Peters
Non-Executive Director
Ross Warner
President, Commercial & Legal
Peter Kondrat
Chief Operating Officer
Scott Fenoglio
Chief Financial Officer
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
14
2. Key management personnel remuneration
The following table sets out the remuneration of Directors and executives of the Consolidated Entity during the reporting year.
Fixed
STI
LTI
Total
Proportion of Remuneration
Year
Salary fees
and leave
$
Bonus
$
Superannuation
$
Incentive
Payments
$
Security Based
Payments
$
$
Fixed %
STI
%
LTI
%
Non-Executive Director
Neil Rinaldi
2024
104,000
-
-
-
(102,400)1
1,600
6,500%
-
(6,400%)
2023
91,000
-
-
5,000
(89,465)2
6,535
1,392%
77%
(1369%)
Gregg Peters3
2024
60,000
-
-
-
-
60,000
100%
-
-
2023
18,500
-
-
-
225,000
243,500
8%
-
92%
Total Non-Executive Directors
2024
164,000
-
-
-
(102,400)
61,600
266%
-
(166%)
2023
109,500
-
-
5,000
135,535
250,035
44%
2%
54%
Executive Directors
Trent Spry
2024
295,124
-
29,411
-
(499,200)1
(174,665)
(186%)
-
286%
2023
324,014
-
30,391
21,786
(436,142)2
(59,951)
791%
36%
(727%)
Total Executive Directors
2024
295,124
-
29,411
-
(499,200)
(174,665)
(186%)
-
286%
2023
324,014
-
30,391
21,786
(436,142)
(59,951)
791%
36%
(727%)
1 Resulting from reversal of valuation of tranche 4 unlisted performance rights expiring 7 July 2024 and reversal of valuation of tranche 5 unlisted performance rights expiring 7 January 2025.
2 Resulting from reversal of valuation of tranche 1-2 unlisted performance rights expiring 7 January 2024.
3 Appointed 10 September 2023.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
15
2. Key management personnel remuneration (continued)
Fixed
STI
LTI
Total
Proportion of
Remuneration
Year
Salary fees
and leave
$
Bonus
$
Superannuation
$
Incentive
Payments
$
Security
Based
Payments
$
$
Fixed %
STI
%
LTI
%
Key Management Personnel
Ross Warner4
2024
305,127
-
29,411
-
(307,200)1
27,338
1,224%
-
(1,124%)
2023
300,704
-
30,391
21,786
(268,395)2
84,486
392%
26%
(318%)
Peter Kondrat
2024
272,876
-
-
-
(120,000)1
152,876
178%
-
(78%)
2023
270,986
-
-
22,582
(106,514)2
187,054
145%
12%
(57%)
Scott Fenoglio
2024
272,876
-
-
-
(60,000)1
212,876
128%
-
(28%)
2023
270,986
-
-
22,582
(83,553)2
210,015
129%
11%
(40%)
Total Key Management Personnel
2024
850,879
-
29,411
-
(487,200)
393,090
224%
-
(124%)
2023
842,676
-
30,391
66,950
(458,462)
481,555
181%
14%
(95%)
Total Directors & Key Management
Personnel
2024
1,310,003
58,822
-
(1,088,800)
280,025
489%
-
(389%)
2023
1,276,190
-
60,782
93,736
(759,069)
671,639
0%
13%
(113%)
4 Resigned 10 September 2023 as Executive Chairman, appointed as President, Commercial & Legal from 10 September 2023.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
16
3. Service agreements (audited)
The Directors serve until they resign, are removed, cease to be a Director or are prohibited
from being a Director under the provisions of the Corporations Act 2001, or are not re-elected
to office. The Directors are remunerated on a monthly basis with three months termination
payments payable. As at the date of this report management personnel engaged by the
Company other than the Directors include the engagement of the Chief Operating Officer,
Peter Kondrat and the Chief Financial Officer, Scott Fenoglio.
The Non-Executive Directors do not have a service agreement.
The Executive Director entered into a service agreement with effect from 1 July 2021 on the
following terms:
Salary (including Director’s fees of $261,432 per annum (excluding superannuation or
similar contributions).
The Company will make contributions to the Executive’s nominated superannuation
fund in accordance with the minimum amount prescribed by relevant superannuation
legislation from time to time.
The Company may also, in its absolute discretion, provide a bonus, the value of which,
the conditions attached to and the frequency of such a bonus, remains matters over
which the Company exercises sole discretion.
Termination of the agreements requires three months’ notice in writing other than if
the termination is a result of unlawful conduct.
The President, Commercial & Legal, entered into a service agreement with effect on the
following terms:
Salary (including fees of $261,432 per annum (excluding superannuation or similar
contributions).
The Company will make contributions to the President’s, Commercial & Legal
nominated superannuation fund in accordance with the minimum amount prescribed
by relevant superannuation legislation from time to time.
The Company may also, in its absolute discretion, provide a bonus, the value of which,
the conditions attached to and the frequency of such a bonus, remains matters over
which the Company exercises sole discretion.
Termination of the agreements requires three months’ notice in writing other than if
the termination is a result of unlawful conduct.
The Chief Operating Officer entered into a service agreement with effect from 30 June 2022
and the Chief Financial Officer entered into a service agreement with effect from 6 September
2022 on the following terms:
salary of AU$272,876 (US$180,000) per annum
the employment is “at-will” and the agreement may be terminated by either party
without notice.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
17
4. Shareholding and option holding of Directors and other Key Management Personnel
(audited)
Share holdings of Key Management Personnel
The movement during the reporting period in the number of ordinary shares of the Company
held directly, indirectly or beneficially, by each Director or key management personnel,
including their personally-related entities is as follows:
Director /
Key
Manage
ment
Personnel
No. Shares
Held at 31
December
2023
Share
Based
Payments
Exercise of
Options /
Conversion of
Performance
Rights
Other
Changes
No. Shares
Held at 31
December
2024
No. Shares
Held at Date
of this Report
Neil
Rinaldi
Directly
-
-
-
-
-
-
Indirectly
2,000,000
-
-
-
2,000,000
2,000,000
Trent
Spry
Directly
19,000,000
-
-
(7,398,342)
11,601,658
11,601,658
Indirectly
6,000,000
-
-
3,500,000
9,500,000
9,500,000
Gregg
Peters
Directly
-
-
-
-
-
-
Indirectly
400
-
-
-
400
400
Ross
Warner
Directly
28,567,248
-
-
(21,689,076)
6,878,172
6,878,172
Indirectly
2,587,661
-
-
1,500,000
4,087,661
4,087,661
Peter
Kondrat
Directly
-
-
1,310,009
-
1,310,009
1,310,009
Indirectly
-
-
-
-
-
-
Scott
Fenoglio
Directly
-
-
1,310,009
-
1,310,009
1,310,009
Indirectly
-
-
-
-
-
-
Total
58,155,309
-
2,620,018
(24,087,418)
36,687,909
36,687,909
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
18
Details of options over the ordinary shares in the Company provided to each director and key
management personnel of the Consolidated Entity is set out below. When exercisable, each
option is convertible into one ordinary share of the Company.
Options held by Key Management Personnel
Director / Key
Management
Personnel
No.
Options
Held at 31
December
2023
Share
Based
Payments
Exercise
of
Options
Other
Changes
No.
Options
Held at 31
December
2024
No.
Options
Held at
Date of this
Report
Neil Rinaldi
Directly
-
-
-
-
-
-
Indirectly
-
-
-
-
-
-
Trent Spry
Directly
-
-
-
-
-
-
Indirectly
-
-
-
1,750,000
1,750,000
1,750,000
Gregg Peters
Directly
9,000,000
-
-
-
9,000,000
9,000,000
Indirectly
-
-
-
-
-
-
Ross Warner
Directly
-
-
-
-
-
-
Indirectly
-
-
-
1,750,000
1,750,000
1,750,000
Peter Kondrat
Directly
-
-
-
-
-
-
Indirectly
-
-
-
-
-
-
Scott Fenoglio
Directly
-
-
-
-
-
-
Indirectly
-
-
-
-
-
-
Total
9,000,000
-
-
3,500,000
12,500,000
12,500,000
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
19
Details of options over the ordinary shares in the Company provided to each director and key management personnel of the Consolidated Entity is set out
below. When exercisable, each option is convertible into one ordinary share of the Company.
Performance Rights held by Key Management Personnel
Director / Key
Management
Personnel
No. Performance
Rights Held at 31
December 2023
Share
Based
Payments
Conversion of
Performance
Rights
Other
Changes
No. Performance
Rights Held at 31
December 2024
No. Performance
Rights Held at Date
of this Report
No. Unvested at
31 December
2024
Fair Value of
Grant
Neil Rinaldi
Directly
8,000,000
-
-
(4,800,000)
3,200,000
1,600,000
1,600,000
$243,0655
Indirectly
-
-
-
-
-
-
-
-
Trent Spry
Directly
39,000,000
-
-
(23,400,000)
15,600,000
7,800,000
7,800,000
$1,184,9425
Indirectly
-
-
-
-
-
-
-
-
Gregg Peters
Directly
-
-
-
-
-
-
-
-
Indirectly
-
-
-
-
-
-
-
-
Ross Warner
Directly
24,000,000
-
-
(14,400,000)
9,600,000
4,800,000
4,800,000
$729,1955
Indirectly
-
-
-
-
-
-
-
-
Peter Kondrat
Directly
10,000,000
-
(2,000,000)
(6,000,000)
2,000,000
-
2,000,000
$286,5145
Indirectly
-
-
-
-
-
-
-
-
Scott Fenoglio
Directly
10,000,000
-
(2,000,000)
(6,000,000)
2,000,000
2,000,000
2,000,000
$263,5535
Indirectly
-
-
-
-
-
-
-
-
Total
91,000,000
-
(4,000,000)
(54,600,000)
32,400,000
16,200,000
18,200,000
$2,707,269
5 Valued during FY22.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
20
The following terms and conditions apply to each of the Performance Rights:
(Vesting Conditions): The Performance Rights will vest subject to the satisfaction of
the following performance milestones within that timeframe (each a Milestone):
Tranche
Milestone
Vesting /
Expiry
Date
Number of
Performance
Rights
1
Vest and be convertible upon:
(A)
the Company publicly reporting two (2)
independently certified helium discoveries;
and
(B)
the Company’s achieving a 20-day VWAP of
$0.10 or more,
within 18 months after issue of the performance right6
Directors,
COO &
Employee:
07-Jan-24
CFO: 18-
May-24
20,200,000
2
Vest and be convertible upon the Company publicly
reporting:
(A)
Independently certified helium reserves; and
(B)
Independently certified helium reserves and
resources including net recoverable helium
meeting at least one of the following metrics:
(i) P90 greater than 10 Bcf; or (ii) P50 greater
than 20 Bcf; or (iii) P10 greater than 30 Bcf,
within 18 months after issue of the performance right6
Directors,
COO &
Employee:
07-Jan-24
CFO: 18-
May-24
20,200,000
3
Vest and be convertible upon the Company having
drilled five (5) separate prospects within two (2) years
after issue of the performance right
Directors,
COO &
Employee:
07-Jul-24
CFO: 18-
Nov-24
20,200,000
4
Vest and be convertible upon the Company making a
Final Investment Decision (FID) in relation to the
development of a facility for the development of a
helium project within 2 years after issue of the
performance right6
Directors,
COO &
Employee:
07-Jul-24
CFO: 18-
Nov-24
20,200,000
5
Vest and be convertible upon the Company selling
helium within 30 months after issue of the performance
right7
Directors,
COO &
Employee:
07-Jan-25
CFO: 18-
May-25
20,200,000
Total
101,000,000
Transactions with related parties
During the reporting year, there were no related party transactions.
End of Remuneration Report
6 Did not vest before expiry date.
7 2,000,000 performance rights were cancelled, 16,200,000 performance rights did not vest before expiry date
and 2,000,000 performance rights remain in existence.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
21
DIVIDENDS
No dividends were paid during the year and no recommendation is made as to payment of
dividends.
EVENTS SUBSEQUENT TO REPORTING DATE
There are no matters or circumstances that have arisen since the end of the year which will
significantly affect, or may significantly affect, the state of affairs or operations of the
Consolidated Entity in future financial years other than the following:
On 7 January 2025, 16,200,000 unlisted performance rights expired.
INDEMNIFICATION OF DIRECTORS & COMPANY SECRETARY
The Company has agreed to indemnify the current Directors and Company Secretary of the
Consolidated Entity against all liabilities that may arise from their position as directors or
officers of the Group to the maximum extent permitted by law.
INDEMNIFYING OFFICERS
During the year, the Company paid a premium to insure officers of the Consolidated Entity.
The officers of the Consolidated Entity covered by the insurance policy include all directors,
the COO, the CFO and the company secretary. The liabilities insured are legal costs that may
be incurred in defending civil or criminal proceedings that may be brought against the officers
in their capacity as officers of the Consolidated Entity, and any other payments arising from
liabilities incurred by the officers in connection with such proceedings, other than where such
liabilities arise out of conduct involving a wilful breach of duty by the officers or the improper
use by the officers of their position or of information to gain advantage for themselves or
someone else to cause detriment to the Consolidated Entity or other otherwise excluded by
the policy.
PROCEEDINGS ON BEHALF OF COMPANY
There are no proceedings.
AUDITOR’S DECLARATION OF INDEPENDENCE
A copy of the auditor's independence declaration as required under section 307C of the
Corporations Act 2001 is set out immediately after this Directors' report. Total fees paid or
payable to the Company’s auditors Stantons Corporate Finance Pty Ltd for non-audit services
provided to the Company during the year ended 31 December 2024 are $Nil (2023: $1,000).
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a)
of the Corporation Act 2001.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities
22
Signed in accordance on behalf of the Directors.
____________________
Trent Spry
Managing Director and Chief Executive Officer
28 March 2025
CORPORATE GOVERNANCE STATEMENT
Blue Star Helium Limited and Controlled Entities
23
The Board is committed to achieving and demonstrating the highest standards of corporate
governance. Blue Star Helium Limited and its subsidiaries have adopted the third edition of
the Corporate Governance Principles and Recommendations released by the ASX Corporate
Governance Council.
The Company’s corporate governance statement reflects the corporate governance policies
that were adopted by the directors of the Company who were in office at the date of this
report. These policies have applied since 29 March 2019.
The Company’s current Corporate Governance Statement is available on Blue Star Helium
Limited’s website at: https://www.bluestarhelium.com/corporate/governance/
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
28 March 2025
Board of Directors
Blue Star Helium Limited
Level 11
216 St Georges Terrace
Perth WA 6000
Dear Directors
RE:
BLUE STAR HELIUM LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Blue Star Helium Limited.
As Audit Director for the audit of the financial statements of Blue Star Helium Limited for the year ended
31 December 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
Martin Michalik
Director
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
25
Note
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
Revenue
3
8,661
8,006
Cost of goods sold
4
(94,856)
105,457
Gross profit / (loss)
(86,195)
113,463
Other income / (expense)
3
(198,101)
60,941
Other Expenses
4
(2,160,859)
(1,324,306)
Depreciation / amortisation
10 & 11
(760,847)
(9,740)
Exploration and evaluation assets
12
(738,368)
(372,032)
Impairment: exploration and evaluation
assets
12
(6,739,082)
-
Rehabilitation costs
16,843
(86,867)
Impairment: right of use assets
11
(1,584,198)
-
Employment expenses
(1,698,902)
(1,707,037)
Share based payment expense
17
1,194,846
639,069
Business development expenses
(168,184)
(321,641)
Legal expenses
(140,125)
(117,509)
Loss before tax
(13,063,172)
(3,125,659)
Income tax expense
5
-
-
Net loss for the year from operations
(13,063,172)
(3,125,659)
Other comprehensive income
Exchange differences on translation of
foreign entities
(379,838)
(21,421)
Total comprehensive loss for the year
(13,443,010)
(3,147,080)
Basic and diluted loss per share (cents)
6
(0.61)c
(0.19)c
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
26
Note
Consolidated Entity
31 December 2024
$
Consolidated Entity
31 December 2023
$
ASSETS
Current Assets
Cash and cash equivalents
7
2,691,224
6,869,070
Trade and other receivables
8
202,650
58,799
Other assets
9
344,646
402,875
Total Current Assets
3,238,520
7,330,744
Non-Current Assets
Other assets
9
156,473
142,398
Plant and equipment
10
1,196,354
931,718
Right of use assets
11
9,023,395
-
Exploration and evaluation assets
12
9,126,526
14,098,072
Total Non-Current Assets
19,502,748
15,172,188
Total Assets
22,741,268
22,502,932
LIABILITIES
Current Liabilities
Trade and other payables
13
472,016
330,432
Lease liabilities
14
423,413
-
Provisions
15
231,166
218,107
Total Current Liabilities
1,126,595
548,539
Non-Current Liabilities
Lease liabilities
14
11,025,689
-
Provisions
15
163,658
34,646
Total Non-Current Liabilities
11,189,347
34,646
Total Liabilities
12,315,942
583,185
Net Assets
10,425,326
21,919,747
EQUITY
Contributed equity
16
36,110,610
33,411,947
Reserves
17
2,728,304
3,478,378
Accumulated losses
(28,413,588)
(14,970,578)
Total Equity
10,425,326
21,919,747
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
27
Consolidated Entity
Contributed
Equity
$
Foreign
Currency
Translation
Reserve
$
Share
Option
Reserve
$
Share
Based
Payments
Reserve
$
Accumulated
Losses
$
Total
$
Balance at 1 January
2024
33,411,947
32,617
1,377,561
2,068,200
(14,970,578)
21,919,747
Loss for the year
-
-
-
-
(13,063,172)
(13,063,172)
Other comprehensive
income:
Foreign exchange on
translation of
operations
-
379,838
-
-
(379,838)
-
Total comprehensive
loss for the year
-
379,838
-
-
(13,443,010)
(13,063,172)
Transactions with
owners in their
capacity as owners:
Equity issues
3,000,000
-
-
-
-
3,000,000
Equity issue expenses
(301,337)
-
-
-
-
(301,337)
Share based payments
(net)
-
-
-
(1,129,912)
-
(1,129,912)
Balance at 31
December 2024
36,110,610
412,455
1,377,561
938,288
(28,413,588)
10,425,326
Consolidated Entity
Contributed
Equity
$
Foreign
Currency
Translation
Reserve
$
Share
Option
Reserve
$
Share
Based
Payments
Reserve
$
Accumulated
Losses
$
Total
$
Balance at 1 January
2023
26,435,332
54,038
1,377,561
2,707,269
(11,844,919)
18,729,281
Loss for the year
-
-
-
-
(3,125,659)
(3,125,659)
Other comprehensive
income:
Foreign exchange on
translation of
operations
-
(21,421)
-
-
-
(21,421)
Total comprehensive
loss for the year
-
(21,421)
-
-
(3,125,659)
(3,147,080)
Transactions with
owners in their
capacity as owners:
Equity issues
7,478,000
-
-
-
-
7,478,000
Equity issue expenses
(501,385)
-
-
-
-
(501,385)
Share based payments
-
-
-
(639,069)
-
(639,069)
Balance at 31
December 2023
33,411,947
32,617
1,377,561
2,068,200
(14,970,578)
21,919,747
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
28
Note
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
Cash flows from operating activities
Receipts from customers
8,661
8,006
Payments to suppliers and employees
(2,851,129)
(3,268,349)
Interest received
27,134
60,941
Interest paid
(2,774)
(52)
Net cash (used in) operating activities
7
(2,818,108)
(3,199,454)
Cash flows from investing activities
Payment for plant and equipment
(281,435)
(926,477)
Exploration, evaluation and development
expenditure (including licenses acquisition
costs)
(4,583,452)
(2,656,527)
Proceeds from farmin to helium assets
2,271,585
-
Proceeds from disposal of leases
-
20,285
Net cash (used in) investing activities
(2,593,302)
(3,562,719)
Cash flows from financing activities
Proceeds from share issues
3,000,000
7,478,000
Payment for costs of equity issues
(222,449)
(501,385)
Repayment of lease liabilities
(1,462,224)
-
Net cash (used in) / from financing activities
1,315,327
6,976,615
Net (decrease) / increase in cash held
(4,096,083)
214,442
Cash and cash equivalents at beginning of the
year
6,869,070
6,824,205
Foreign exchange effect on cash and cash
equivalents
(81,763)
(169,577)
Cash and cash equivalents at the end of the
year
7
2,691,224
6,869,070
The accompanying notes form part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
29
1.
Corporate information
This Annual Report covers Blue Star Helium Limited and the entities it controlled at the end
of, or during, the year ended 31 December 2024 (the “Consolidated Entity”). The presentation
currency of the Consolidated Entity is Australian Dollars (“$”). A description of the
Consolidated Entity’s operations is included in the review and results of operations in the
Directors’ Report. The Directors’ Report is not part of the financial statements. The
Consolidated Entity is a for-profit entity and limited by shares incorporated in Australia whose
shares are traded under the ASX code “BNL”. The financial statements were authorised for
issue on 28 March 2025 by the Directors. The Directors have the power to amend and reissue
the financial statements. The principal accounting policies adopted in the preparation of the
financial statements are set out below.
2.
Accounting policies
a. Basis of preparation
These general purpose financial statements for the year ended 31 December 2024 have been
prepared in accordance with applicable Australian Accounting Standards, the Corporations
Act 2001 and other mandatory professional reporting requirements, as appropriate for for-
profit oriented entities. These financial statements are to be read in conjunction with any
public announcements made by the Company during the reporting period in accordance with
the continuous disclosure requirements of the Corporations Act 2001. The principal
accounting policies adopted are consistent with those of the previous financial year. The
financial report complies with Australian Accounting Standards and International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standard Board.
b. Going concern
For the year ended 31 December 2024 the consolidated entity incurred a total comprehensive
loss of $13,443,010 (31 December 2023: total comprehensive loss of $3,147,080) and had
working capital of $2,111,925 (31 December 2023: $6,782,205). The Directors reviewed the
cash flow forecasts and working capital requirements of the Consolidated Entity in view of the
Consolidated Entity’s existing cash resources of $2,691,224 (31 December 2023: $6,869,070).
The Directors believe that the Company will be able to raise additional funds through an issue
of new equity. On this basis, the Directors consider there are reasonable grounds to believe
that the Consolidated Entity will be able to pay its debts as and when they become due and
payable, and therefore the going concern basis of preparation is considered to be appropriate
for the 31 December 2024 year financial report. In the event that the Consolidated Entity is
not able to continue as a going concern, it may be required to realise assets and extinguish
liabilities other than in the normal course of business and perhaps at amounts different to
those stated in its financial report.
c. Principles of consolidation
The consolidated financial statements comprise the financial statements of Blue Star Helium
Limited and its subsidiaries during the year ended 31 December 2024 (“the Consolidated
Entity"). The financial statements of the subsidiaries are prepared for the same reporting year
as the parent company, using consistent accounting policies. In preparing the consolidated
financial statements, all inter-company balances and transactions, income and expenses and
profit and losses resulting from intra-group transactions have been eliminated in full.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
30
2.
Accounting policies (continued)
Subsidiaries are fully consolidated from the date on which control is transferred to the
Consolidated Entity and cease to be consolidated from the date on which control is
transferred out of the Consolidated Entity.
d. Foreign currency translation
Both the functional and presentation currency of Blue Star Helium Limited and its Australian
subsidiaries is in Australian dollars ($). Entities within the Consolidated Entity that are based
and operate outside of Australia use the functional currency of the country in which they
operate, provided the local economy is not subject to hyperinflation. Each entity in the
Consolidated Entity uses its specific functional currency to measure the items included in the
financial statements of that entity. Transactions in foreign currency are recorded in the
functional currency by applying the exchange ruling at the average monthly rate. Monetary
assets and liabilities denominated in foreign currencies are translated at the rate of exchange
ruling at the balance sheet date. Non-monetary items that are measured in terms of historic
cost in a foreign currency are translated using the exchange rate as at the date of the initial
transaction. Non-monetary items are measured at fair value in a foreign currency are
translated using the exchange rate as at the date when fair value was determined. The
functional currency of the Consolidated Entity’s foreign operations, Blue Star USA Holdings
Inc, BNL (Enterprise) Inc and Las Animas Leasing Inc is United States dollars (USD). As at the
reporting date the assets and liabilities of these subsidiaries were translated into the
presentation currency of Blue Star Helium Limited at the rate of exchange ruling at the balance
date and their profit or loss is translated at the average monthly exchange rate. The exchange
differences arising on the translation are taken directly to the consolidated statement of profit
or loss and other comprehensive income. On disposal of a foreign entity, the deferred
cumulative amount recognised in equity relating to that particular foreign operation is
recognised in the statement of profit or loss and other comprehensive income.
e. Critical accounting estimates, assumptions and judgements
Estimates and assumptions are periodically evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. Equally, the Consolidated Entity continually employs judgement in
the application of its accounting policies.
Critical Accounting Estimates and Assumptions
The Consolidated Entity makes estimates and assumptions concerning the future. The
resulting accounting estimates will, by definition, seldom equal the related actual results. The
estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below:
Impairment of exploration and evaluation assets
The Consolidated Entity’s accounting policy for impairment is set out at Note 12. Unless
otherwise identified, the following discussion of impairment testing is applicable to the
assessment of the recoverable amount of all of the Consolidated Entity’s Exploration and
Evaluation assets. The Company has valued these assets at the fair value or market price
for these assets less impairment.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
31
2.
Accounting policies (continued)
Lease accounting
On 30 June 2023 the Company announced that it had entered into a Gas Processing
Services Agreement with a third-party midstream company based in the US, IACX Energy
LLC. The Company sought out the opinion of a third-party consulting firm as to the
accounting treatment for this agreement. This agreement is accounted for as a lease in
accordance with AASB 16 requirements now that payments have commenced.
Restoration obligations
Where a restoration obligation exists, the Consolidated Entity estimates the future
removal costs of production facilities, wells and pipelines at the time of installation of the
assets. In most instances, removal of assets occurs many years into the future. This
requires judgemental assumptions regarding removal date, future environmental
legislation, the extent of reclamation activities required, the engineering methodology for
estimating cost, future removal techniques in determining the removal cost and asset. For
more detail regarding this policy in respect of the provision for restoration refer to Note
15.
Share based payment transactions
The Company measures the cost of equity-settled transactions with employees by
reference to the fair value of the equity instruments at the date at which they are granted.
The fair value of the options issued are determined by using the Black-Scholes model
taking into account the terms and conditions upon which the instruments were granted.
The accounting estimates and assumptions relating to equity-settled share-based
payments would have no impact on the carrying amounts of assets and liabilities within
the next annual reporting period but may impact profit or loss and equity.
f. Accounting Standards that are mandatorily effective for the current reporting year
The Consolidated Entity has considered the implications of new and amended Accounting
Standards which have become applicable for the current financial reporting period.
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements
2018–2020 and Other Amendments
The Entity adopted AASB 2020-3 which makes some small amendments to a number of
standards including the following: AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB
141. The adoption of the amendment did not have a material impact on the financial
statements.
AASB 2021-7a: Amendments to Australian Accounting Standards – Effective Date of
Amendments to AASB 10 and AASB 128 and Editorial Corrections
AASB 2020-7a makes various editorial corrections to a number of standards effective for
reporting periods beginning on or after 1 January 2022. The adoption of the amendment did
not have a material impact on the financial statements.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
32
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
3.
Revenue and other income
Royalty
8,661
8,006
Interest income
27,134
60,941
Loss on farmin to helium assets
(225,235)
-
(189,440)
68,947
Accounting policy:
Revenue is recognised when the Consolidated Entity transfers control of goods to a customer
at the amount to which the Consolidated Entity expects to be entitled. Where the
consideration promised includes a variable amount, the Consolidated Entity estimates the
amount of consideration to which it will be entitled to at the time the revenue is recognised.
The following specific recognition criteria must also be met before revenue is recognised:
Royalty Revenue – Oil and gas sales
Revenue from royalties is recognised in the period of production of the underlying oil
or gas being produced. Royalty agreements that are based on production, sales and
other measures are recognised by reference to the underlying arrangements.
Interest
Revenue is recognised as the interest accrues using the effective interest method.
This is a method of calculating the amortised cost of a financial asset and allocating
the interest income over the relevant year using the effective interest rate, which is
the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to the net carrying amount of the financial asset.
Loss on farmin to helium assets
On 28 August 2024 Blue Star finalized a farm-in agreement with Helium One for a 50%
interest in the Galactica/Pegasus Project. Helium One paid US$1.5 million to Blue Star
for prior costs incurred in the project and agreed to fund the drilling of six wells (up
to US$450,000 per well). The loss on farmin to helium assets arose from the US$1.5
million received compared to 50% of the historical project costs as of the date of the
agreement, being US$1,648,573, resulting in a loss of US$148,573 at an exchange rate
of 0.659635.
4.
Cost of goods sold and other expenses
Cost of sales: other production costs
(94,856)
105,457
(94,856)
105,457
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
33
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
4.
Cost of goods sold and other expenses
(continued)
Other expenses: compliance costs
747,510
545,158
Other expenses: insurance costs
137,921
116,132
Other expenses: marketing costs
164,259
177,372
Other expenses: interest expense
1,222,930
52
Other expenses: other (including forex)
(111,761)
485,592
2,160,859
1,324,306
5.
Income tax
Income tax expense / (benefit)
Current tax
-
-
Deferred tax
-
-
Under / (over provision) in prior years
-
-
-
-
Amounts recognised directly in equity
Aggregate current and deferred tax arising in the
reporting period and not recognised in net profit or
loss or other comprehensive income but directly
debited or credited to equity
Current tax
-
-
Net deferred tax
-
-
-
-
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
34
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
5.
Income tax (continued)
Reconciliation of income tax expense to prima facie
tax payable
Loss from continuing operations before income tax
expense
(13,063,172)
(3,125,659)
Tax at the Australian tax rate of 30% (2023: 30%)
(3,918,952)
(937,698)
Tax effect of amounts which are non-deductible
(taxable) in calculating taxable income:
Non-deductible expenses / assessable income
3,736,277
727,550
Deferred tax asset not brought to account
163,067
189,666
Movement in unrecognised temporary
differences
19,608
20,482
Non-assessable income
-
-
Deductible equity raising costs
-
-
-
-
The applicable weighted average effective tax rates
0%
0%
Unrecognised deferred tax asset
Tax losses- revenue
16,176,221
16,004,279
Expenses taken into equity
949
1,278
Other temporary differences
95,871
76,996
Temporary differences – tax capital losses
1,250
1,250
16,274,291
16,083,803
Off-set of deferred tax liabilities
(56)
(1,164)
Net deferred tax assets unrecognised
16,274,235
16,082,639
The carried forward tax losses in the US total $19,802,548 (US$12,275,936) (31 December
2023: $7,727,656 (US$5,264,002)).
Accounting policy:
Income tax
Current tax assets and liabilities for the current and prior years are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are enacted or substantively enacted by
the balance date. Deferred income tax is provided on all temporary differences at the
balance date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
35
5.
Income tax (continued)
Deferred income tax liabilities are recognised for all taxable temporary differences; except:
when the deferred income tax liability arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in
subsidiaries, associates or interests in joint ventures, and the timing of the reversal
of the temporary difference can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-
forward of unused tax assets and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the
carry-forward of unused tax assets and unused tax losses can be utilised; except:
when the deferred income tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in
subsidiaries, associates and interests in joint ventures, in which case the deferred
tax asset is only recognised to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to be utilised. Unrecognised
deferred income tax assets are reassessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax
asset to be recovered. Deferred income tax assets and liabilities are measured at the tax
rates that are expected to apply to the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantially enacted
at the balance date. Income taxes relating to terms recognised directly in equity are
recognised in equity and not in profit or loss.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from
the taxation authority in which case the GST is recognised as part of the cost of
acquisition of the asset or as part of the expense item as applicable; and
receivables and payables which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included
as part of receivables or payables in the Statement of Financial Position. Cash flows are
included in the Statement of Cash Flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which is recoverable from, or payable
to, the taxation authority, are classified as operating cash flows. Commitments and
contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
36
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
6.
Basic and diluted loss per share
The following reflects the income and share data used in the basic and diluted loss per share
computations:
Net (loss) attributable to ordinary equity holders of
the parent (used in calculating basic and diluted loss
per share)
(13,063,172)
(3,125,659)
Consolidated
Entity
31 December
2024
No.
Consolidated
Entity
31 December
2023
No.
Weighted average number of ordinary shares
outstanding during the year used in calculating basic
and dilutive EPS
2,130,640,435
1,652,347,782
Accounting policy:
Basic EPS is calculated as net profit attributable to members of the parent, adjusted to
exclude costs of servicing equity (other than dividends), divided by the weighted average
number of ordinary shares, adjusted for any bonus element. Diluted EPS is calculated as the
net profit attributed to members of the parent, adjusted for:
costs of servicing equity (other than dividends);
the after-tax effect of dividends and interest associated with the dilutive potential
ordinary shares that have been recognised as expenses; and
other non-discretionary changes in revenue and expenses during the year that
would result from the dilution of potential ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary
shares, adjusted for any bonus element.
The Consolidated Entity is in a loss position therefore the share-based incentive plans do not
affect the diluted earnings per share calculation as potential ordinary shares will be treated
as dilute when, and only when, their conversion to ordinary shares would decrease earnings
per share or increase loss per share from continuing operations.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
37
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
7.
Cash and cash equivalents
Cash at bank and on hand
2,691,224
6,869,070
2,691,224
6,869,070
Accounting policy:
Cash and short-term deposits in the statement of financial position comprise cash at bank
and in hand and short-term deposits with an original maturity of three months or less.
Reconciliation of net (loss) after tax to net operating
cash flows:
Net (loss) for the year
(13,063,172)
(3,125,659)
Exploration expenditure
882,386
477,490
Impairment
8,323,280
-
Loss on sale of helium assets
225,234
-
Depreciation, depletion and amortisation
760,847
9,740
Interest on lease liabilities
1,220,157
-
Share based payments
(1,194,846)
(639,069)
Foreign exchange
(77,303)
225,534
Provisions
-
86,867
(Increase)/Decrease in receivables and prepayments
65,899
(294,849)
Increase/(Decrease) in creditors and payables
(33,110)
122,199
Increase/(Decrease) in provisions
72,520
(61,707)
Net cash (outflows) from operating activities
(2,818,108)
(3,199,454)
8.
Trade and other receivables
Other receivables
184,291
1,726
GST refunds
18,359
57,073
202,650
58,799
There are no receivables that are past due.
Accounting policy:
An estimate for expected credit loss is made when there is objective evidence that the
Consolidated Entity will not be able to collect the full debt. Expected credit losses are
written off when identified. Financial difficulties of the debtor and default payments are
likely to be considered objective evidence of impairment.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
38
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
9.
Other assets
Current
Inventory8
57,740
216,440
Prepaid expenses
286,906
186,435
344,646
402,875
Non-Current
Bonds
156,473
142,398
156,473
142,398
10.
Plant and equipment
Computer equipment and asset under construction
-
At cost
1,226,088
953,923
-
Accumulated depreciation
(29,734)
(22,205)
1,196,354
931,718
Reconciliation of the movements in plant and equipment:
Balance at beginning of year
931,718
13,210
Additions
205,406
926,477
Disposals
(644)
-
Depreciation
(7,529)
(9,740)
Exchange difference on translation: depreciation
514
-
Exchange difference translation: cost
66,889
1,771
Balance at end of year
1,196,354
931,718
Accounting policy:
Property, plant and equipment is stated at cost less accumulated depreciation and any
accumulated impairment losses.
Depreciation
Property, plant and equipment, other than freehold land, is depreciated to their residual
values at rates based on the expected useful lives of the assets concerned. The remaining
assets use the straight-line approach at 50%.
8 Inventory relates to spare parts and other sundries to be used in future drilling programs.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
39
10.
Plant and equipment (continued)
Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each
reporting date, with the recoverable amount being estimated when events or changes in
circumstances indicate the carrying value may be impaired. The recoverable amount of
property, plant and equipment is the greater of fair value less costs to sell and value in use.
For an asset that does not generate largely independent cash inflows, the recoverable amount
is determined for the cash-generating unit to which the asset belongs, unless the asset's value
in use can be estimated to be close to its fair value. Impairment exists when the carrying value
of an asset or cash-generating unit exceeds its estimated recoverable amount. The asset or
cash-generating unit is then written down to its recoverable amount. For property, plant and
equipment, impairment losses are recognised in profit or loss.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further
future economic benefits are expected from its use or disposal. Any gain or loss arising on de-
recognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in profit or loss in the year the asset is
derecognised.
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
11.
Right of use asset
Right of use asset
At cost
11,495,523
-
Accumulated depreciation
(786,418)
-
Provision for impairment
(1,685,710)
-
9,023,395
-
Balance at beginning of year
-
-
Recognition9
11,495,523
-
Depreciation
(786,418)
-
Exchange difference on translation: depreciation
32,586
-
Exchange difference translation: cost
(32,586)
-
Provision for impairment
(1,685,710)
-
Balance at end of year
9,023,395
-
9 Relates to right of use asset, being the Gas Processing Services Agreement with a third-party midstream company
based in the US, IACX Energy LLC.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
40
11.
Right of use asset (continued)
Accounting policy:
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use
asset is measured at cost, which comprises the initial amount of the lease liability, adjusted
for, as applicable, any lease payments made at or before the commencement date net of any
lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset. Right-of-use assets are
depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the Company expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its
estimated useful life. Right-of use assets are subject to impairment or adjusted for any re-
measurement of lease liabilities.
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
12.
Exploration and evaluation assets
Capitalised expenditure
-
At cost
8,848,778
14,176,254
-
Accumulated amortisation and impairment
-
-
-
Exchange difference translation
277,748
(78,182)
9,126,526
14,098,072
Reconciliation of the movements in capitalised
expenditure:
Balance at beginning of year
14,098,072
12,459,717
Exploration and evaluation expenditure incurred during
the year
2,228,156
2,086,298
Impairment and abandonment of exploration and
evaluation assets
(6,739,082)
-
Write-off of exploration and evaluation assets
(738,368)
(369,761)
Exchange difference translation
277,748
(78,182)
Balance at end of year
9,126,526
14,098,072
Blue Star Helium Limited has secured leases in Las Animas County, Colorado, USA over a
number of prospects and leads to develop and deliver its helium strategy. This leased acreage
is intended to support a drilling programme in 2024 and beyond. Currently Blue Star Helium
Limited has expended certain funds in connection with acquiring and exploring the lands for
helium. As at 31 December 2024 there was a total of $9,126,526 (31 December 2023:
$14,098,072) of expenditure directly connected with this asset which has been capitalised from
1 October 2019 in accordance with AASB 6 Exploration and Evaluation of Mineral Resources.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
41
12.
Exploration and evaluation assets (continued)
During 2024 the Company impaired and wrote off Exploration and Evaluation costs related to
the drilling of the BBB #33 and Bolling #4, historical G&G costs, and leasehold delay rentals.
Accounting policy:
Expenditure on exploration and evaluation is accounted for in accordance with the "area of
interest" method. Exploration licence acquisition costs are capitalised and subject to half-yearly
impairment testing. All exploration and evaluation costs, including general permit activity,
geological and geophysical costs and new venture activity costs are expensed as incurred except
where:
The expenditure relates to an exploration discovery where, at balance date, an
assessment of the existence or otherwise of economically recoverable reserves is not
yet complete and significant operations in, or in relation to, the area of interest are
continuing; or
An assessment has been made and it is expected that the expenditure will be recouped
through successful exploitation of the area of interest, or alternatively, by its sale.
The costs of drilling exploration wells are initially capitalised pending the results of the well.
Costs are expensed where the well does not result in the successful discovery of economically
recoverable hydrocarbons or helium. Areas of interest may be recognised at either the field or
the well level, depending on the nature of the project. Subsequent to the recognition of an area
of interest, all further costs relating to the area of interest are capitalised. Each potential or
recognised area of interest is reviewed half-yearly to determine whether economic quantities
of reserves have been found or whether further exploration and evaluation work is underway
or planned to support the continued carry forward of capitalised costs. Upon approval for the
commercial development of an area of interest, accumulated expenditure for the area of
interest is transferred to oil, gas and helium properties. The recoverability of the carrying
amount of the exploration and evaluation assets is dependent on successful development and
commercial exploitation, or alternatively, sale of the respective areas of interest.
Impairment
At each reporting date, the Consolidated Entity assesses whether there is any indication that an
asset may be impaired. If any such indication of impairment exists, or when annual impairment
testing for an asset is required, the Consolidated Entity makes a formal estimate of the asset's
recoverable amount. An asset's recoverable amount is the higher of fair value less costs to sell
and its value in use. It is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets and the
asset's value in use cannot be estimated to be close to its fair value. In such cases, the asset is
tested for impairment as part of the cash-generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-
generating unit is considered impaired and is written down to its recoverable amount. In
assessing value in use, an assessment is made as to whether the Company intends to make
substantive expenditures on the asset and the carrying amount of the assets is assessed against
the market capitalisation of the Company. Impairment losses relating to continuing operations
are recognised in those expense categories consistent with the function of the impaired asset
unless the asset is carried at a revalued amount (in which case the impairment loss is treated as
a revaluation decrease).
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
42
12.
Exploration and evaluation assets (continued)
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-
generating unit) is increased to the revised estimate of recoverable amount, but only to the
extent that the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset (cash-generating
unit).
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
13.
Trade and other payables
Trade creditors and other accruals
472,016
330,432
472,016
330,432
Accounting policy:
Trade payables and other payables are carried at amortised costs and represent liabilities for
goods and services provided to the Consolidated Entity prior to the end of the financial year
that are unpaid and arise when the Consolidated Entity becomes obliged to make future
payments in respect of the purchase of these goods and services.
14.
Lease liabilities
Current
Lease liabilities10
423,413
-
423,413
-
Non-Current
Lease liabilities10
11,025,689
-
11,025,689
-
15.
Provisions
Current
Employee benefits
231,166
170,856
Restoration
-
47,251
231,166
218,107
10 The lease is for the IACX Energy processing plant with an initial term of 3 years with the option to extend for a
further 7 years using an interest rate of 1.25%.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
43
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
15.
Provisions (continued)
Non-Current
Employee benefits
21,971
9,761
Restoration
141,687
24,885
163,658
34,646
Reconciliation of the movements in the restoration
provision:
Balance at start of year
72,136
133,842
Additions during the year
112,235
24,884
Utilisation of provision
(12,113)
(86,590)
Reversal of provision
(37,700)
-
Foreign exchange movements
7,129
-
Balance at end of year
141,687
72,136
The restoration obligations are expected to be incurred over a period from 1 to 15 years. The
Company has recognised a provision for restoration related to the estimated cost of restoration
work required at the end of the useful life of the wellbores it owns, including removal of
facilities and equipment required or intended to be removed. These provisions have been
created based on the Company’s estimate. These estimates are reviewed regularly to consider
any material changes to the assumptions. However actual decommissioning costs will
ultimately depend upon future market prices for the necessary decommissioning works
required which will reflect market conditions at the relevant time. These estimates of
restoration are subject to significant estimates and assumptions which are outlined in the
accounting policy note.
Accounting policy:
Provisions are recognised when the Consolidated Entity has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation. If the effect of the time value of money is material, provisions
are discounted using a pre-tax rate that reflects the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as
finance costs. Liabilities for wages and salaries, and other short-term benefits expected to be
settled within 12 months of the reporting date are recognised in current provisions in respect
of employees' services up to the reporting date. They are measured at the amounts expected
to be paid when the liabilities are settled.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
44
15.
Provisions (continued)
Restoration provision
The Consolidated Entity records the present value of the estimated cost of legal and
constructive obligations to restore operating locations in the year in which the obligation
arises. The nature of restoration activities includes the removal of facilities, abandonment of
wells and restoration of affected areas. Typically, the obligation arises when the asset is
installed at the production location. When the liability is initially recorded, the estimated cost
is capitalised by increasing the carrying amount of the related oil and gas properties. Costs
incurred that relate to an existing condition caused by past operations, and do not have future
economic benefit, are expensed.
Consolidated Entity
31 December 2024
Consolidated Entity
31 December 2023
No.
$
No.
$
16.
Contributed equity
Balance at beginning of
year
1,942,265,281
33,411,947
1,586,170,058
26,435,332
Share issue from
placement: 23-Oct-23
-
-
333,333,334
7,000,000
Share issue from share
purchase plan: 23-Nov-23
-
-
22,761,889
478,000
Share issue from
performance rights
conversion: 28-Jun-24
2,620,018
-
-
-
Share issue from
placement: 16-Sep-24
486,221,323
1,944,885
-
-
Share issue from
placement: 30-Oct-24
263,778,677
1,055,115
-
-
Share issue costs
-
(301,337)
-
(501,385)
Balance at end of year
2,694,885,299
36,110,610
1,942,265,281
33,411,947
Accounting policy:
Issued and paid-up capital is recognised at the fair value of the consideration received by
the Consolidated Entity. Any share issue costs arising on the issue of ordinary shares are
recognised directly in equity as a reduction of the proceeds received.
Capital management
When managing capital, the Board’s objective is to ensure the Consolidated Entity continues
as a going concern as well as to maintain optimal returns to shareholders and benefits for
other stakeholders. Management also aims to maintain a capital structure that ensures the
lowest cost of capital available to the entity. Management monitors capital by reviewing the
level of cash on hand, cash flow forecasts and working capital requirements of the
Consolidated Entity in view of the Consolidated Entity’s existing cash resources of $2,691,224
(31 December 2023: $6,869,070) and ability of the Company to raise capital as needed.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
45
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
17.
Reserves
Foreign currency translation reserve
Balance at beginning of year
32,617
54,038
Foreign exchange on translation of operations
379,838
(21,421)
Balance at end of year
412,455
32,617
Options reserve
Balance at beginning of year
1,377,561
1,377,561
Balance at end of year
1,377,561
1,377,561
Share based payments
Balance at beginning of year
2,068,200
2,707,269
Options granted
78,888
225,000
Performance rights granted11
-
160,000
Performance rights cancelled
(120,000)
-
Revaluation of performance rights
(1,088,800)
(1,024,069)
Balance at end of year
938,288
2,068,200
Total reserves
2,728,304
3,478,378
11 A total of 24,000,000 tranche 1-5 unlisted performance rights expiring 7 January 2024 to 7 January 2025 were
granted to Ross Warner; a total of 39,000,000 tranche 1-5 unlisted performance rights expiring 7 January 2024 to
7 January 2025 were granted to Trent Spry; a total of 8,000,000 tranche 1-5 unlisted performance rights expiring
7 January 2024 to 7 January 2025 were granted to Neil Rinaldi; and a total of 10,000,000 tranche 1-5 unlisted
performance rights expiring 7 January 2024 to 7 January 2025 were granted to Peter Kondrat on 7 July 2022. A
total of 10,000,000 tranche 1-5 unlisted performance rights expiring 18 May 2024 to 18 May 2025 were granted
to Scott Fenoglio on 18 November 2022. A total of 10,000,000 tranche 1-5 unlisted performance rights expiring
7 January 2024 to 7 January 2025 were granted to an employee on 27 October 2023. The performance rights
granted to Ross Warner, Trent Spry and Neil Rinaldi were approved by shareholders at the 31 May 2022 annual
general meeting. The performance rights granted to Peter Kondrat, Scott Fenoglio and the employee were issued
using the Company’s ASX LR 7.1 (15%) capacity.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
46
Consolidated Entity
31 December 2024
No.
Consolidated
Entity
31 December
2023
No.
17.
Reserves (continued)
Unlisted options
Balance at beginning of year
26,194,726
34,389,452
Options granted
93,914,401
9,000,000
Options free-attaching
375,000,000
-
Options expired
(17,194,726)
(17,194,726)
Balance at end of year
477,914,401
26,194,726
Unlisted performance rights
Balance at beginning of year
101,000,000
91,000,000
Performance rights granted
-
10,000,000
Performance rights expired
(59,979,982)
-
Performance rights cancelled
(6,000,000)
-
Performance rights converted
(2,620,018)
-
Balance at end of year
32,400,000
101,000,000
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
47
17.
Reserves (continued)
Inputs
Director Performance Rights
Employee Performance Rights
Employee Performance Rights
Employee Performance Rights
Number of
performance
rights at year
end
28,400,000
2,000,000
2,000,000
Nil
Exercise price
$Nil
$Nil
$Nil
$Nil
Expiry date
Varies between 7 July 2024 & 7
January 2025
Varies between 7 July 2024 & 7
January 2025
Varies between 18 November 2024 &
18 May 2025
Expires 7 January 2025, cancelled 12
April 2024
Grant date
7 July 2022
7 July 2022
18 November 2022
27 October 2023
Vesting date
Upon vesting conditions being met
Upon vesting conditions being met
Upon vesting conditions being met
Upon vesting conditions being met
Vesting
conditions
Tranche 1: vest and be convertible
upon:
the Company publicly reporting two
(2) independently certified helium
discoveries; and
the Company’s achieving a 20-day
VWAP of $0.10 or more,
within 18 months after issue of the
performance right
Tranche 2: vest and be convertible
upon the Company publicly reporting:
Independently certified helium
reserves; and
Independently certified helium
reserves and resources including net
recoverable helium meeting at least
one of the following metrics: (i) P90
greater than 10 Bcf; or (ii) P50 greater
than 20 Bcf; or (iii) P10 greater than
30 Bcf,
Tranche 1: vest and be convertible
upon:
the Company publicly reporting two
(2) independently certified helium
discoveries; and
the Company’s achieving a 20-day
VWAP of $0.10 or more,
within 18 months after issue of the
performance right
Tranche 2: vest and be convertible
upon the Company publicly reporting:
Independently certified helium
reserves; and
Independently certified helium
reserves and resources including net
recoverable helium meeting at least
one of the following metrics: (i) P90
greater than 10 Bcf; or (ii) P50 greater
than 20 Bcf; or (iii) P10 greater than
30 Bcf,
Tranche 1: vest and be convertible
upon:
the Company publicly reporting two
(2) independently certified helium
discoveries; and
the Company’s achieving a 20-day
VWAP of $0.10 or more,
within 18 months after issue of the
performance right
Tranche 2: vest and be convertible
upon the Company publicly reporting:
Independently certified helium
reserves; and
Independently certified helium
reserves and resources including net
recoverable helium meeting at least
one of the following metrics: (i) P90
greater than 10 Bcf; or (ii) P50 greater
than 20 Bcf; or (iii) P10 greater than
30 Bcf,
Tranche 1: vest and be convertible
upon:
the Company publicly reporting two
(2) independently certified helium
discoveries; and
the Company’s achieving a 20-day
VWAP of $0.10 or more,
within 18 months after issue of the
performance right
Tranche 2: vest and be convertible
upon the Company publicly
reporting:
Independently certified helium
reserves; and
Independently certified helium
reserves and resources including net
recoverable helium meeting at least
one of the following metrics: (i) P90
greater than 10 Bcf; or (ii) P50
greater than 20 Bcf; or (iii) P10
greater than 30 Bcf,
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
48
within 18 months after issue of the
performance right
Tranche 3: vest and be convertible
upon the Company having drilled five
(5) separate prospects within two (2)
years after issue of the performance
right
Tranche 4: vest and be convertible
upon the Company making a Final
Investment Decision (FID) in relation to
the development of a facility for the
development of a helium project
within 2 years after issue of the
performance right
Tranche 5: vest and be convertible
upon the Company selling helium
within 30 months after issue of the
performance right
within 18 months after issue of the
performance right
Tranche 3: vest and be convertible
upon the Company having drilled five
(5) separate prospects within two (2)
years after issue of the performance
right
Tranche 4: vest and be convertible
upon the Company making a Final
Investment Decision (FID) in relation to
the development of a facility for the
development of a helium project
within 2 years after issue of the
performance right
Tranche 5: vest and be convertible
upon the Company selling helium
within 30 months after issue of the
performance right
within 18 months after issue of the
performance right
Tranche 3: vest and be convertible
upon the Company having drilled five
(5) separate prospects within two (2)
years after issue of the performance
right
Tranche 4: vest and be convertible
upon the Company making a Final
Investment Decision (FID) in relation to
the development of a facility for the
development of a helium project
within 2 years after issue of the
performance right
Tranche 5: vest and be convertible
upon the Company selling helium
within 30 months after issue of the
performance right
within 18 months after issue of the
performance right
Tranche 3: vest and be convertible
upon the Company having drilled five
(5) separate prospects within two (2)
years after issue of the performance
right
Tranche 4: vest and be convertible
upon the Company making a Final
Investment Decision (FID) in relation
to the development of a facility for
the development of a helium project
within 2 years after issue of the
performance right
Tranche 5: vest and be convertible
upon the Company selling helium
within 30 months after issue of the
performance right
Share price at
grant date
$0.03
$0.03
$0.03
$0.02
Risk free
interest rate
2.725%
2.725%
3.053%
4.282%
Volatility
85%
85%
85%
80%
Performance
rights value
(total)
$Nil (Tranche 1 and 2 did not vest and
Tranche 4 expired subsequent to the
period end and the fair value has been
adjusted to reflect updated
probabilities)
$Nil (Tranche 1 and 2 did not vest and
Tranche 4 expired subsequent to the
period end and the fair value has been
adjusted to reflect updated
probabilities)
$Nil (Tranche 1 and 2 did not vest and
Tranche 4 expired subsequent to the
period end and the fair value has been
adjusted to reflect updated
probabilities)
$Nil
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
49
17.
Reserves (continued)
Non-performance based options
Inputs
Director Options
Broker Options
Number of options
9,000,000
93,914,401
Exercise price
$0.028
$0.01
Expiry date
11-Sep-27
30-Oct-26
Grant date
10-Sep-23
30-Oct-24
Vesting date
3,000,000 – 10-Sep-24
3,000,000 – 10-Sep-25
3,000,000 – 10-Sep-26
30-Oct-24
Share price at grant date
$0.025
$0.004
Risk free interest rate
3.85%
3.99%
Volatility
251%
80%
Option value
$0.025
$0.00084
Accounting policy:
The Consolidated Entity provides benefits to directors and employees of the Consolidated
Entity in the form of equity, whereby directors and employees render services in exchange
for shares, options to acquire shares or rights over shares. The cost of these equity-settled
transactions with employees and directors is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined using
an appropriate model. In valuing equity-settled transactions, account is taken of
performance conditions where the conditions are linked to the price of the shares of Blue Star
Helium Limited. The cost of equity-settled transactions is recognised, together with a
corresponding increase in equity, over the year in which the performance and/or service
conditions are fulfilled, ending on the date on which the relevant employees become fully
entitled to the award (the vesting period). The cumulative expense recognised for equity-
settled transactions at each reporting date until vesting date reflects (i) the extent to which
the vesting period has expired and (ii) for non-market-based hurdles, the extent to which the
hurdle has been satisfied. Consolidated Entity’s best estimate of the number of equity
instruments that will ultimately vest. No adjustment is made for changes in the likelihood of
market performance conditions being met as the effect of these conditions is included in the
determination of the fair value at grant date. The profit or loss charge or credit for a year
represents the movement in cumulative expense recognised as at the beginning and end of
that year. The dilutive effect, if any, of outstanding securities is reflected as additional share
dilution in the computation of earnings per share.
Options / performance rights reserve
The options / performance rights reserve is used to record the value of share-based payments
and other options purchased by/provided to Key Management Personnel, and other parties
as part of their remuneration, or for the provision of services.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from
the conversion of the financial statement of foreign subsidiaries.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
50
18.
Financial risk management objectives and policies
The Company and the Consolidated Entity have exposure to the following risks from their
use of financial instruments:
market risk;
liquidity risk; and
credit risk.
The Board of Directors has overall responsibility for the establishment and oversight of the
risk management framework. The Board is responsible for developing and monitoring risk
management policies. The Consolidate Entity’s principal financial instruments comprise cash
at bank. The main purpose of these financial instruments is to provide working capital for the
Consolidated Entity’s operations. The Consolidated Entity’s has various other financial
instruments such as trade creditors, which arise directly from its operations. Throughout the
year under review, the Consolidated Entity’s policy is that no trading in financial instruments
shall be undertaken. The main risks arising from the Consolidated Entity’s financial
instruments are market risk (which includes equity price risk, interest rate risk, foreign
currency risk and commodity risk), liquidity risk and credit risk. The Board reviews and agrees
on policies for managing each of these risks and they are summarised below:
Market risk
Equity price risk
As at 31 December 2024 there is no material equity risk for the Company.
Interest rate risk
At balance date the Consolidated Entity’s exposure to market risk for changes in interest
rates relates primarily to the Company’s cash at bank. As at 31 December 2024 there is no
material interest rate risk for the Company.
Foreign currency risk
As a result of the Company’s operations in the USA being denominated in USD, the
Consolidated Entity’s Statement of Financial Position can be affected significantly by
movements in the USD/AUD exchange rates. The Company does not hedge this
translational risk exposure. The Consolidated Entity manages its foreign exchange risk by
constantly reviewing its exposure to commitments payable in foreign currency and
ensuring appropriate cash balances are maintained in United States Dollars, to meet
current operational commitments. At 31 December 2024 the Consolidated Entity had no
forward foreign exchange contracts in place.
Commodity price risk
The Consolidated Entity is exposed to commodity price fluctuations through the sale of
petroleum products denominated in US dollars – specifically the natural gas, condensate
and oil prices in the USA. The Consolidated Entity will have a future price risk to helium
prices once any wells enter production.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
51
18.
Financial risk management objectives and policies (continued)
Liquidity risk
The Consolidated Entity’s objective is to maintain a balance between continuity of funding
and flexibility through the use of its cash and funding alternatives. The Consolidated Entity
manages liquidity risk by maintaining adequate funds through the monitoring of future
rolling cash flow forecasts of its operations, which reflect management’s expectations of
the settlement of financial assets and liabilities. The following are the contractual
maturities of financial liabilities, including estimated interest payments and excluding the
impact of any netting agreements.
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31
December
2023
$
0-6 months
(1,431,822)
(330,432)
6-12 months
(1,161,446)
-
1-5 years
(11,695,114)
-
> 5 years
(7,549,398)
-
(21,837,780)
(330,432)
The following table discloses the contractual maturity analysis of financial assets and liabilities
as at the end of the financial year:
<6 Months
6-12
Months
1-5 Years
>5 Years
Total
31 December
2024
Financial assets
Cash and cash
equivalents
2,691,224
-
-
-
2,691,224
Trade and other
receivables
202,650
-
-
-
202,650
Deposits
-
156,473
-
-
156,473
2,893,874
156,473
-
-
3,050,347
Financial
liabilities
Trade and other
payables
(472,016)
-
-
-
(472,016)
Lease liabilities
(959,806)
(1,161,446)
(11,695,114)
(7,549,398)
(21,365,764)
(1,431,822)
(1,161,446)
(11,695,114)
(7,549,398)
(21,837,780)
Net inflow /
(outflow)
1,462,052
(1,004,973)
(11,695,114)
(7,549,398)
(18,787,433)
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
52
18.
Financial risk management objectives and policies (continued)
<6
Months
6-12
Months
1-5
Years >5 Years
Total
31 December 2023
Financial assets
Cash and cash equivalents
6,869,070
-
-
-
6,869,070
Trade and other receivables
58,799
-
-
-
58,799
Deposits
-
-
142,398
-
142,398
6,927,869
-
142,398
-
7,070,267
Financial liabilities
Trade and other payables
330,432
-
-
-
330,432
330,432
-
-
-
330,432
Net inflow / (outflow)
6,597,437
-
142,398
-
6,739,835
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual
obligations resulting in financial loss to the Consolidated Entity. Credit risk arises
from the financial assets of the Consolidated Entity, which comprise cash and cash
equivalents, trade and other receivables. The carrying amount of financial assets
recorded in the financial statements, net of any provisions for losses, represents the
Consolidated Entity’s maximum exposure to credit risk without taking account of
the value of any collateral or other security obtained. Exposure at balance date is
addressed in each applicable note. The Consolidated Entity does not hold any credit
derivatives to offset its credit exposure. The Consolidated Entity trades only with
recognised, creditworthy third parties and has adopted a policy of dealing with
creditworthy counterparts and obtaining sufficient collateral or other security
where appropriate, as a means of mitigating the risk of financial loss from defaults.
Specific concentration of credit risk exists primarily within cash and cash
equivalents. As at 31 December 2024 the only trade receivables and other
receivable is for GST receivable and other receivables. The Consolidated Entity does
have a significant credit risk exposure to the provider of its helium facility (IACX
Energy LLC) as that facility will be the sole source of helium revenue in Las Animas
county in the near term. The carrying amount of financial assets recorded in the
financial statements, net of any allowance for impairment losses, represents the
Consolidated Entity’s maximum exposure to credit risk.
Fair value
All assets and liabilities for which fair value is disclosed in the financial statements
are categorised within the fair value hierarchy, described below as follows, based
on the lowest level input that is significant to the fair value measurement as a
whole:
o Level 1 – Quoted (unadjusted) market prices in active markets for identical
assets or liabilities
o Level 2 – Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly observable
o Level 3 – Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable
The Directors consider that the carrying amount of the financial assets and liabilities
recorded in the financial statements approximate their fair values.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
53
19.
Operating segments
For management purposes, the Company is organised into one main operating segment,
which involves helium (including oil and gas) exploration, development and production in
the USA. All the Company's activities are interrelated, and discrete financial information is
reported to the Chairman and the management team as a single segment. Accordingly, all
significant operating decisions are based upon analysis of the Company as one segment. The
financial results from this segment are equivalent to the financial statements of the
Consolidated Entity as a whole. The Consolidated Entity derives its revenue from the sale of
gas, condensate & NGL’s produced in the USA. During the reporting periods ended 31
December 2024 and 31 December 2023 external sales of gas, condensate & NGL’s were
made to customers solely located in the USA.
US
Corporate
Total
31 December 2024
Segment revenue
(216,574)
27,134
(189,440)
Segment assets
20,169,978
2,571,290
22,741,268
Segment liabilities
(11,927,634)
(388,308)
(12,315,942)
31 December 2023
Segment revenue
8,006
60,941
68,947
Segment assets
15,358,306
7,144,626
22,502,932
Segment liabilities
(247,923)
(335,262)
(583,185)
Consolidated
Entity
31 December
2024
$
Consolidated
Entity
31 December
2023
$
20.
Auditor’s remuneration
The auditor of Blue Star Helium Limited is Stantons International. Amounts received or due
and receivable in relation to the entity or any other entity in the Consolidated Entity:
Audit or review of the financial report
55,369
51,495
55,369
51,495
Total fees paid or payable to the Company’s auditors Stantons Corporate Finance Pty Ltd for
non-audit services provided to the Company during the year ended 31 December 2024 were
$Nil (2023: $1,000).
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
54
21.
Director and KMP disclosures
The following persons were either Directors or key management personnel of Blue Star
Helium Limited during the whole of the financial year and up to the date of this report, unless
otherwise stated:
Name
Title
Neil Rinaldi
Non-Executive Chairman
Trent Spry
Managing Director and Chief Executive Officer
Gregg Peters
Non-Executive Director
Ross Warner
President, Commercial & Legal
Peter Kondrat
Chief Operating Officer
Scott Fenoglio
Chief Financial Officer
Consolidated
Entity
31 December 2024
$
Consolidated
Entity
31 December
2023
$
21.
Director and KMP disclosures
(continued)
Compensation by Category: Key
Management Personnel
Short-Term (including bonus)
1,310,003
1,369,926
Post-Employment
58,822
60,782
Long-Term
-
-
Share-based Payments
(1,088,800)
(759,069)
280,025
671,639
During the year ended 31 December 2024 and the year ended 31 December 2023 there
were no loans provided to Key Management Personnel. There was an amount of $Nil
accrued at 31 December 2024 (2023: $Nil) relating to business expenses incurred by
Directors. There were no transactions with Key Management Personnel other than those
described above. At 31 December 2024 and 31 December 2023 there were no balances
outstanding in relation to Key Management Personnel other than those described above
and in the Remuneration Report.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
55
Company
31 December 2024
$
Company
31 December
2023
$
22.
Parent Entity information
Current Assets
2,569,411
6,236,138
Non-Current Assets
1,880
4,247
Total Assets
2,571,291
6,240,385
Current Liabilities
366,338
289,236
Non-Current Liabilities
21,971
9,762
Total Liabilities
388,309
298,998
Net Assets
2,182,982
5,941,387
EQUITY
Contributed equity
36,110,610
33,411,947
Reserves
2,315,849
3,445,761
Accumulated losses
(36,243,477)
(30,916,321)
Total Equity
2,182,982
5,941,387
(Loss) for the year
(5,327,156)
(7,626,271)
Total comprehensive (loss) for the year
(5,327,156)
(7,626,271)
There are no commitments or contingencies other than those disclosed in this report.
There are no guarantees.
23.
Events after the end of the reporting period
There are no matters or circumstances that have arisen since the end of the period which
will significantly affect, or may significantly affect, the state of affairs or operations of the
Consolidated Entity in future financial years other than the following:
On 7 January 2025, 16,200,000 unlisted performance rights expired.
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
56
Consolidated
Entity
31 December 2024
$
Consolidated
Entity
31 December
2023
$
24.
Commitments and contingencies
The Consolidated Entity is planning to undertake a drilling programme later this year but
as at 31 December 2024 it is not formally committed. The material commitments relating
to operating and exploration expenditure include leasehold and surface rental payments
and monthly service payments for the Helium Recovery Unit:
< 1 year
510,891
1,846,145
1 – 5 years
1,918,317
5,360,603
> 5 years
119,636
536,828
2,548,844
7,743,576
On 30 June 2023 the Company announced that it had entered into a Gas Processing
Services Agreement with a third-party midstream company based in the US, IACX Energy
LLC. The Company sought out the opinion of a third-party consulting firm as to the
accounting treatment for this agreement. The agreement is accounted for as a lease in
accordance with AASB 16 requirements now that payments have commenced.
a. Contingent assets
There are no contingent assets as at 31 December 2024.
b. Contingent liabilities
There are no contingent liabilities as at 31 December 2024.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Blue Star Helium Limited and Controlled Entities
57
Company Name
Entity Type
Place of
Incorporation
Place of Tax
Residency
31 December 2024
% Ownership
31 December 2023
% Ownership
Controlled by Blue Star Helium Limited:
Santa Energy Pty Ltd12
Company
Australia
Australia
0%
100%
BNL (USA Helium) Pty Ltd
Company
Australia
Australia
100%
100%
Controlled by BNL (USA Helium) Pty Ltd:
Blue Star USA Holdings Inc13
Company
USA
USA
100%
100%
BNL (Enterprise) Inc (at 31 December 2023)
Company
USA
USA
0%
100%
Las Animas Leasing Inc (at 31 December 2023)
Company
USA
USA
0%
100%
Controlled by Blue Star USA Holdings Inc:
BNL (Enterprise) Inc (at 30 June 2024)
Company
USA
USA
100%
0%
Las Animas Leasing Inc (at 30 June 2024)
Company
USA
USA
100%
0%
Blue Star Helium Limited (the “parent entity”) and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax
consolidation regime.
12 Santa Energy Pty Ltd was de-registered on 22 May 2024.
13 Blue Star USA Holdings Inc was incorporated 21 November 2023.
DIRECTORS’ DECLARATION
Blue Star Helium Limited and Controlled Entities
58
In accordance with a resolution of Directors of Blue Star Helium Limited, the Directors declare
that:
they are of the opinion that the Consolidated financial statements and Notes of Blue
Star Helium Limited, and the remuneration disclosures contained in the
Remuneration Report for the year ended 31 December 2024 are in accordance with
the Corporations Act 2001, including:
o giving a true and fair view of the financial position as at 31 December 2024
and the performance for the year ended on that date of the Consolidated
Entity; and
o complying with Accounting Standards (including Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
the financial statements and notes also comply with International Financial Reporting
Standards as disclosed in Note 1; and
in the Directors’ opinion there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations
Act 2001.
The consolidated entity disclosure statement is true and correct.
Signed in accordance with a resolution of the Directors.
On behalf of the directors
____________________
Trent Spry
Managing Director and Chief Executive Officer
28 March 2025
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BLUE STAR HELIUM LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Blue Star Helium Limited (“the Company”), and its subsidiaries (“the
Group”), which comprises the consolidated statement of financial position as at 31 December 2024, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Relating to Going Concern
Without modifying our audit opinion expressed above, attention is drawn to the following matter.
As referred to in Note 2(b) to the financial statements, the consolidated financial statements have been prepared
on a going concern basis. At 31 December 2024, the Group had cash and cash equivalents of $2,691,224, and
incurred a loss after income tax of $13,063,172.
The ability of the Group to continue as a going concern and meet its planned exploration, administration and
other commitments is dependent upon the Group raising further working capital and/or successfully exploiting
its mineral assets. In the event that the Group is not successful in raising further equity or successfully exploiting
its mineral assets, the Group may not be able to meet its liabilities as and when they fall due and the realisable
value of the Group’s current and non-current assets may be significantly less than book values.
Key Audit Matters
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matter described below to be Key Audit Matter to be communicated in our report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matters
How the matter was addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
As at 31 December 2024, Exploration and
Evaluation Assets totalled $9,126,526 (refer to
Note 12 of the financial report).
The carrying value of exploration and evaluation
assets is a key audit matter due to:
•
The
significance
of
the
expenditure
capitalised representing 40% of total assets;
•
The necessity to assess management’s
application of the requirements of the
accounting standard Exploration for and
Evaluation of Mineral Resources (“AASB 6”),
in light of any indicators of impairment that
may be present; and
•
The assessment of significant judgements
made by management in relation to the
capitalised
exploration
and
evaluation
expenditure.
Inter alia, our audit procedures included the
following:
i. Assessing the Group’s right to tenure over
exploration
assets
by
corroborating
the
ownership of the relevant licences for mineral
resources on a sample basis;
ii. Reviewing the directors’ assessment of the
carrying value of the capitalised exploration
and evaluation costs, ensuring the veracity of
the
data
presented
and
assessing
management’s
consideration
of
potential
impairment indicators, and the stage of the
Group’s projects also against AASB 6;
iii. Evaluation
of
Group
documents
for
consistency with the intentions for continuing
exploration and evaluation activities in areas of
interest and corroborated in discussions with
management. The documents we evaluated
included:
▪
Minutes of the board and management;
and
▪
Announcements made by the Group to the
Australian Securities Exchange; and
iv. Consideration
of
the
requirements
of
accounting standard AASB 6 and reviewed the
financial statements to ensure appropriate
disclosures are made.
Lease with IACX Energy LLC
As disclosed in notes 11, 14 and 24 of the financial
report, the company agreed during the year to lease
a helium recovery plant from IACX Energy LLC.
The application of AASB 16 (“Leases”) required
management to assess each active contract to
which the company is party to and to identify
whether it is, or it contains, a lease. Further,
management was also required to make significant
judgements in the initial accounting for, and
subsequently measurement of, these leases,
including:
➢
determining the commencement date of
the lease and its term;
➢
establishing the lease term including any
renewal options that are reasonably
certain to be elected;
➢
the evaluation of subsequent contract
modifications, including impairment of
Right of use assets; and
➢
determining the incremental borrowing
rate to be applied to historic leases.
We considered this area to be a key audit matter
given the magnitude of the amounts involved, the
complex nature of these transactions and the
significant judgements in the application of lease
accounting.
Inter alia, our audit procedures included the
following:
i.
Examining the contract with IACX Energy
LLC;
ii.
Reviewing and assessing the independent
external accounting received by management
from
their
accounting
expert
on
the
application of the lease contract under AASB
16 and its commencement date;
iii. Reviewing and assessing the Right of Use
asset calculation and lease liabilities
iv. Given delays to planned production in the
period, we challenged management on the
carrying value of Right of Use asset, the
assumptions
used
in
the
impairment
calculation; and
v. Considered the adequacy of the financial
report disclosures contained in financial report
in relation to AASB 16.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 31 December 2024 but does not include the financial report and
our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 12 to 20 of the directors’ report for the year ended
31 December 2024.
In our opinion, the Remuneration Report of Blue Star Helium Limited for the year ended 31 December 2024
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
28 March 2025
SHAREHOLDER INFORMATION
Blue Star Helium Limited and Controlled Entities
64
As at 25 March 2025
Issued Securities
Listed on ASX
Unlisted
Total
Fully paid ordinary shares
2,694,885,299
-
2,694,885,299
$0.028 unlisted options expiring 11-Sep-
27
-
9,000,000
9,000,000
$0.01 unlisted options expiring 31-Oct-26
-
468,914,401
468,914,401
Tranche 3 performance rights expiring
07-Jul-24
-
14,200,000
14,200,000
Tranche 5 performance rights expiring
18-May-25
-
2,000,000
2,000,000
Total
2,694,885,299
494,114,401
3,188,999,700
Distribution of Listed Ordinary Fully Paid Shares
Spread of Holdings
Number of Holders Number of Units % of Total Issued Capital
1 - 1,000
170
40,777
0.00%
1,001 - 5,000
41
101,501
0.00%
5,001 - 10,000
96
869,450
0.03%
10,001 - 100,000
1,372
62,663,694
2.33%
100,001 - and over
1,290
2,631,209,877
97.64%
Total
2,969
2,694,885,299
100.00%
SHAREHOLDER INFORMATION
Blue Star Helium Limited and Controlled Entities
65
Top 20 Listed Ordinary Fully Paid Shareholders
Rank
Shareholder
Shares Held
% Issued
Capital
1.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
153,477,687
5.70%
2.
CITICORP NOMINEES PTY LIMITED
101,224,825
3.76%
3.
FERNSHA PTY LIMITED
91,317,381
3.39%
4.
BINVID PTY LTD
90,014,048
3.34%
5.
MR KIE CHIE WONG
73,809,524
2.74%
6.
BNP PARIBAS NOMINEES PTY LTD
57,340,541
2.13%
7.
MR CHARLES WOOD
50,000,000
1.86%
8.
MR STEVE VAN DER VEEKEN
44,000,000
1.63%
9.
PETO PTY LTD <1953 SUPER FUND A/C>
40,000,000
1.48%
9.
BLAMNCO TRADING PTY LTD
40,000,000
1.48%
10.
GLOBAL EFFICIENT SOLUTIONS PTY LTD
39,000,000
1.45%
11.
TT-DD PTY LIMITED
36,992,856
1.37%
12.
MR KOK KEEN CHONG & MRS HUE NGHI CHONG
32,000,000
1.19%
13.
MR NIKOLA KRKOVSKI
28,281,722
1.05%
14.
TIMOTHY WONG
27,952,381
1.04%
15.
MR ROGAN RICHARD YATES
27,000,000
1.00%
16.
OCEANVIEW SUPER FUND PTY LTD
23,971,522
0.89%
17.
AEI AUSTRALIA PTY LTD
23,500,000
0.87%
18.
GOLDEN WORDS PTY LTD
22,023,810
0.82%
18.
ONE MANAGED INVESTMENT FUNDS LIMITED
22,023,810
0.82%
18.
REBELOTES PTY LTD
22,000,000
0.82%
19.
OPTIM8 PTY LTD
22,000,000
0.82%
19.
MR SEBASTIAN MARR
22,000,000
0.82%
19.
JETOSEA PTY LTD
22,000,000
0.82%
20.
BUTTONWOOD NOMINEES PTY LTD
20,479,830
0.76%
Total
1,132,409,937
42.05%
The number of shareholdings held in less than marketable parcels is 1,317.
The Company has the following substantial shareholders listed in its register as at 25 March
2025:
Rank
Shareholder
Shares Held
% Issued
Capital
1.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
153,477,687
5.70%
The Company has the following unquoted option holders with >20% holding listed in its register
as at 25 March 2025:
Rank
Option Holder
Option Details
Options
Held
% Issued
Capital
1.
GREGG WALTER PETERS
$0.028 unlisted options
expiring 11-Sep-27
9,000,000
100.00%
Total
9,000,000
100.00%
1.
CG NOMINEES (AUSTRALIA) PTY LTD
$0.01 unlisted options
expiring 31-Oct-26
93,914,401
20.03%
Total
93,914,401
20.03%
SHAREHOLDER INFORMATION
Blue Star Helium Limited and Controlled Entities
66
The Company has the following unquoted performance right holders with >20% holding listed
in its register as at 25 March 2025:
Rank
Performance Right Holder
Performance Right Details
Performance
Right Held
% Issued
Capital
1.
TRENT SPRY
Tranche 3 performance
rights expiring 07-Jul-24
7,800,000
54.93%
2.
MR ROSS WARNER
Tranche 3 performance
rights expiring 07-Jul-24
4,800,000
33.80%
Total
12,600,000
88.73%
1.
SCOTT FENOGLIO
Tranche 5 performance
rights expiring 18-May-25
2,000,000
100.00%
Total
2,000,000
100.00%
Ordinary Shares Voting Rights - Subject to any rights or restrictions for the time being attached
to any class or classes of Shares, at general meetings of Shareholders or classes of Shareholders:
each Shareholder entitled to vote may vote in person or by proxy, attorney or
representative;
on a show of hands, every person present who is a Shareholder or a proxy, attorney or
representative of a Shareholder has one vote; and
on a poll, every person present who is a Shareholder or a proxy, attorney or
representative of a Shareholder shall, in respect of each fully paid Share held by him, or
in respect of which he is appointed a proxy, attorney or representative, have one vote
for the Share, but in respect of partly paid Shares shall have such number of votes as
bears the same proportion to the total of such Shares registered in the Shareholder’s
name as the amount paid (not credited) bears to the total amounts paid and payable
(excluding amounts credited).
The Company has no restricted securities on issue as at the date of this report.
LICENCE INFORMATION
Blue Star Helium Limited and Controlled Entities
67
Schedule of Licences
Helium Project, Colorado, USA
Counterparty
Location
Operator
Total Net
Acres
Working
Interest
Net Revenue
Interest
Fee Minerals
Owners
Las Animas,
CO
Blue Star
Group
107,789
91%
80.0% -
87.5%
Colorado State
Las Animas,
CO
Blue Star
Group
19,237
100%
80%
Bureau of Land
Management
Las Animas,
CO
Blue Star
Group
69,903
100%
85% -87.5%
Hawkeville Overriding Royalty Interest
Well Name
Area
Royalty
Interest
Donnell 457 1&2
McMullen, TX
0.125000%
Donnell C-1H
McMullen, TX
0.993450%
Donnell C-2H
McMullen, TX
0.993450%
Donnell-Mullholland Unit 1&2
McMullen, TX
0.059553%