RE: Helium Worth6 Jul 2024 07:14
Hi Baits, I to have been looking into this question this morning, instead of spending my whole morning trolling through RNS’ I asked my deer friend ChatGPT. All the below needs fact checking as is simply information available online collated into one.
‘Helium One Global Ltd (LSE: HE1) is a Tanzanian-focused helium explorer with significant operations in the Rukwa, Eyasi, and Balangida project areas, covering a total of approximately 2,965 km². The company’s primary asset, the Rukwa project, is estimated to hold 138 billion cubic feet (Bcf) of unrisked prospective recoverable helium resources [oai_citation:1,Home - Helium One Global](https://www.helium-one.com/) [oai_citation:2,Helium One Global Ltd, HE1:LSE summary - FT.com](https://markets.ft.com/data/equities/tearsheet/summary?s=HE1:LSE).
Recent updates highlight substantial progress, including the discovery of significant helium concentrations at the Itumbula West-1 well in the Rukwa Basin. Tests have confirmed helium concentrations of up to 4.7% [oai_citation:3,Company media - Helium One Global](https://www.helium-one.com/news-and-media/company-media/). This discovery is particularly notable as it signifies a potentially commercially viable resource.
The current market cap of Helium One stands at around £58 million, with recent share prices showing substantial volatility, trading at around 1.14 GBX [oai_citation:4,Helium One Global Ltd Stock (HE1) - Quote London S.E.- MarketScreener](https://www.marketscreener.com/quote/stock/HELIUM-ONE-GLOBAL-LTD-116111624/) [oai_citation:5,Helium One Global Ltd, HE1:LSE summary - FT.com](https://markets.ft.com/data/equities/tearsheet/summary?s=HE1:LSE). Given the scale of the Rukwa project's resources, the potential valuation could rise significantly if commercial production is realized.
To estimate the potential value of Helium One's helium resources, we can use current helium market prices, which range from $200 to $400 per thousand cubic feet (Mcf). Assuming a mid-range price of $300 per Mcf, the 138 Bcf resource could be valued at approximately $41.4 billion. However, this theoretical value does not account for extraction and operational costs, geopolitical risks, or the time required to achieve full production [oai_citation:6,Helium One Global Ltd (LON:HE1) Share Price | RNS News, Quotes, & Charts | HE1.L |](https://www.proactiveinvestors.co.uk/LON:HE1/Helium-One-Global-Ltd).
If Helium One successfully demonstrates commercial viability through extended well tests and moves towards production, the market cap and share price could increase substantially. For instance, even a modest fraction of the in-ground value being realized could push the market cap into the hundreds of millions, reflecting a significant upside from the current valuation.’