Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
So why worry, it will be raised to do the extended well test, without it there would be no test. The market will like the placing and the share price will hold or even go up higher. There are billions of pounds in the ground if the test is successful what's not to like. All companies do placings on AIM to help them go forward with their projects, if this well test is a success there will be lots of share holder a lot wealthier than they where that's for sure. You have to be in in to win it. The risk here is not the actual placing but the well results. Doing the well test should not cost a lot as HE1 own the Rig that they will be using.
It would be for testing the well without it there would be no test. If the test is a success then there would be billions of pounds worth of Helium to come out of the ground. I have been looking at the cost of an Helium plant that they would have to build looking at others it would cost around £25 million, with all that Helium and billions of pounds to come out of the ground i would assume they would get a loan to build that plant that would be easy to pay back over a few years. If you are sat on billions of pounds with no risk I would think the Banks would be queuing up to get their business.
I do now, they are external stakeholders who can effect the company in different ways by the polices they have. Luckily they are all for HE1 in Tanzania. It would be nice if they payrolled the plant that needs building for extracting the Helium. They would be making money on the plant and in taxes, they would be in a win win situation.
Like I said FrankyS1971, do your homework. Do not let a raise dissolution you. Like I said this company will be worth billions at todays prices if the flow test goes well. Partners will be queuing up if the test is a success.
This share price could be anything from 50p to £2 pounds if the flow tests are good. This company could be worth Billions on good results. This is no pipe dream look at the fundamentals do your homework. Look at the heading that is all that is required.
ABOUT US
First mover in a new helium province with the potential to significantly increase the world’s helium inventory.
Independent experts have estimated an Unrisked Prospective Recoverable Helium Resource (P50) of 98.9 billion standard cubic feet for the Rukwa Project.
With numerous industrial and technological applications, helium combines a unique blend of characteristics which make it a high value commodity. Over the past 10 years, world prices for bulk liquid helium have increased by an estimated 106%, or a compounded annual growth rate of 7.5%. New applications for helium are expected to further intensify demand, further highlighting the strategic value of Helium One’s assets, which have demonstrated their potential to host large volumes of helium at exceptional grades.
May not need a fund raise if they farm out to a big player. But if there is a fund raise I think with what they have the market will like it. If they can get out the results from that third party who are checking the helium results and logs, the price should move up which will help in any fund raise if they need one.
The Joint Venture will P&A the Hickory-1 well with any future appraisal and/or development activities at this location being via a long horizontal production well. The rig and associated services are expected to be off-location within the next ten days. It is anticipated that the flow test will be concluded at an estimated cost of circa US$14.5 million gross, due to the additional length of operations.
That said I will speculate that 88e in their enthusiasm to produce a good looking oil flow number, over produced in their testing, which would cause more gas flow than a normal conservative flow test program, thus pushing the measured GOR to this extreme.
What kind of statement is that ( over produced in their testing, ) the well free flowed as it says in RNS
We all have no idea what will happen if the next test is ok. Nothing to stop them flowing them together from horizontal wells. That would in my opinion be thousands of barrels a day. But like everyone else I am just guessing what might be.
Olderwiser, only posts what he wants you to see, he never posts the interesting pieces from the RNS such as.
The well produced at an average oil flow rate of approximately 42 bopd during the natural flow back period, with instantaneous rates ranging from approximately 10 - 77 bopd with average rates increasing through the test period. Importantly, the USFS zone flowed oil to surface under natural flow, with flow back from other reservoirs in adjacent offset wells only producing under nitrogen lift
Highlights
· Flow testing of the Upper SFS (USFS) reservoir confirms light oil discovery at Hickory-1.
· USFS flow rates achieved from low volume frac over small 20ft vertical interval are in line with expectations and results observed from other reservoirs on adjacent acreage.
The completion of flow testing in this zone and recovery to surface of light oil, in addition to NGLs and associated gas, confirms our understanding of the substantial potential of these reservoirs. Significantly, these flow rates were achieved from only a 20ft perforated section in a vertical well with a low volume stimulation over a short period. As previously highlighted, production rates in long horizontal production wells are typically multiples of 6 to 12 times higher than tested in vertical wells