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Thanks gheko good bit of info, hopefully a rig will be secured soon.
https://www.bloomberg.com/opinion/articles/2022-05-19/ukraine-war-mariupol-noble-gases-neon-helium-are-suffering-from-putin-s-war
Bloomberg article on the Ukraine war's impact on neon and helium plus general discussions on price discovery being dominated by key players etc..
@Gheko, thanks for sharing
Although that is in-line with comments from the AGM
@Scott, I wonder if a major like Total would move slow or quick.
Would mobilization costs be from the time the rig is boxed up and shipped, until return or handover to another company or ?
First declaration……I have derisked here to hold just a reasonable amount of shares for now.
Why- rang advisors to query the lack of RNS re drilling. The answer was sadly ‘If and when a drilling rig secured would be reported to market immediately’. So no rig secured yet.
Just saying. Hope they do of course but the presentations both in the 1-2-1 South Arica and the forthcoming are starting to suggest more funds needed cause no drill secured for now.
If I’m wrong - great cause have kept a few for now as eventually the drilling will happen - if not then bottom drawer until next year.
dai: yes I knew that, I'm just thinking of the cost, wherever they find a rig. Obviously it would be nice if the rig was in Tanzania or close by. Total has rigs there. They would like to produce more helium - they have green ambitions. They have massive scale and participate in global marketing and supply chains. I have been dreaming about Total as a minority partner, taking a stake in company with a right to purchase all the gas at the wellhead. They could build their own processing facilities, even a liquification plant if volumes were high enough, and could jump start this whole process of supplying 10% of the world's helium from Tanzania. The alternative if I was working for total would be to buy out Helium 1.
Hope not - they should be ahead of the game with all this.
Could it be that the costs of drilling have significantly increased in recent months, due to the sky rocketing inflation, meaning that an already tight budget for a conventional Rig programme is becoming even more stretched? Maybe they are having to look at more local Rig solutions due to exorbitant and prohibitive costs of contracting a Rig from as far as the USA, for example.
@Scott,
Just showing that PD also have idle rigs outside of the US and Canada...
Not that really means anything without knowing who negotiations are with...
Quasimodo: I wish that Victoria RNS from this morning had been our RNS.
dai: yeah but you have to pay for a rig to be mobilized (including a crew) and then have a minimal work plate that makes it worthwhile for the company. For any substantial program they may have to make some kind of partnership deal that maybe includes part ownership and a supply agreement. Otherwise they have to get more financing. I am not in huge favor of issuing more shares at this price point.
there really will be NO EXCUSE for failure to secure a rig to commence our drilling campaign in Q3. If this failure actually becomes reality, then we need a new leadership team to HE1 and move on and wait till they get it together.
Personally I feel they cant be this stupid, so I am extremely positive that we will have a Q3 drilling campaign on multiple targets and they just dont feel the need to tell us the details yet for some reason unknown.
Precision Drillings international operations have
?Saudi Arabia: 3 active rigs and 1 idle
?Kuwait: 3 active rigs and 3 idle rigs
?Kurdistan and Georgia: 3 idle rigs
It’s good to see rigs are still available hopefully we have one too!
It seems that there are rigs available at the moment if you need one. A RNS from Victoria Oil & Gas this morning states that they have aquired a rig sat idle in Chad, and this will be transported to Camaroon shortly, and the contract negotiating.
The RNS states;
"Matanda: Following the rig tendering exercise, a suitable rig has been identified in nearby Chad, and this rig would be capable of drilling deeper Cretaceous targets as well as the shallower Tertiary targets. As the rig is currently idle, the rig owner will mobilise the rig to Cameroon whilst contract negotiations continue."
"The Company has selected an "over-spec" rig, in terms of horsepower and general capability. Such a rig could drill deeper, in fact down to 5,100m, meaning Cretaceous targets would be easily within reach, as well as the primary Tertiary targets (of which Marula is the first to be drilled). The rig owner, who has a large, global fleet of over 40 rigs, will mobilise the skid-mounted rig to Douala."