RE: How times have changed23 Aug 2023 07:51
Good post Dobbyy. We are basically proving up an 'unproven discovery' here. The de-rampers and shorters hate that phrase because it removes the fear they live off. Last time logs couldn't be run and bad hole conditions meant there were uncertainties in interpreting reservoir and gas readings quantitatively. But despite this the well did prove a working He1 system.
The well proved the He source, it proved the trap and the seal, there was enough mud logging data to prove reservoir existence and elevated He concentrations of up to 10% demonstrating charge. In other words, Tai is an unproven discovery and internally he1 call it that (the CFO used these words in the recent interview). But in order to be called a discovery officially it must have logs and must have a gas sample.
This is not a wild cat drill and the well is not being drilled as an exploration one which would under normal circumstances be plugged and abandoned. It is an appraisal well being drilled over helium seeps.
The objective of Tai-C is very simple: gather logs and samples to be able to declare a discovery.
The greatest risk is an operational one.
Investors on these boards often have a poor attention span and so do not allow their research to give them a proper risk assessment. Here's an example, hands up all those who know the cost of the rig? We have been told in the presentation as a % of a new rig because the question was asked as a % so it's very easy to work out.
I have made my own risk assessment and have decided the risk in this case is worth the potential reward and so will not be selling at the first whiff of helium. There could still be a spanner in the works but that's the risk I am fully prepared to take.
We are fully funded for this drill and will only need extra cash for further exploration. We also have the ability to earn money from hiring the rig. What's not to like?
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