Blue Star Helium Limited is an independent helium exploration and production company operating in North America.

The company has been awarded final approval from the Colorado Oil and Gas Conservation Commission for the drilling of four development wells at Galactica/Pegasus for production of helium and CO2.

Further engineering and market work is underway to refine the initial planned development configuration and forecast helium and CO2 production and cost estimates.

The total of 56 wells will be permitted as part of Blue Star's Las Animas Helium Project.

Helium is a unique industrial gas used for a range of purposes, from MRI machines and semiconductors to fibre optic cables and rocketry.

Following the announcement, shares of Blue Star Helium (ASX:BNL) were up 2.56%.