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Also Mike Williams is on the books as Director of Operations. As you know, he’s a Technical Engineering and Operations Manager with loads of experience on remote drilling projects including East Africa, well engineering, drilling exploration, appraisal.
Joe “ They also don't have any drilling personnel on the books, so they're using consultants on top dollar.”
How do you know who is on the books? There is a core team still on the rig throughout hot stack. Do you think they’re on the books or ‘consultants’?
Yes, that's from today, with a 5.3p target price
https://www.proactiveinvestors.co.uk/companies/news/1043259/helium-one-has-transformational-resource-potential-with-itumbala-campaign-1043259.html
Should see them through the summer into the next drilling season. The main thing is it gives them a stronger hand to play in any interim business development negotiations. You really don't want to go begging with no cash.
I agree the interim results show the change in assets, but that wasn't the document the discussion was referring to. You are making a big assumption though that all of the change in assets is accounted for by the rig. It's possible, but at a maximum that looks like $1.8m (or £1.4m)
Just a hunch, but that change to company structure in November would allow them to drill in Tanzania on the basis of a company based on Tanzania (a government requirement I think?) and possibly to ring fence the rig asset in a holding company out of reach of any potential administration risk to HE1 at that time. HE1 is the sole share founder of EAH. Cope, LB and Smith are the directors. My guess is that EAH will be the company operating and leasing out the rig, both to HE1 and to other clients.
No it doesn't, the accounting year is end June. The title of the report is literally "ANNUAL REPORT AND CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023". How simple can it be? The rig purchase is itemised under point 27 'Post balance sheet events'.
The story is here
https://www.proactiveinvestors.co.uk/companies/news/1042737/helium-one-drill-results-highly-encouraging-says-investment-bank-1042737.html
Nonsense Joe,
SECOND SCHEDULE
_________ (Made under section 113(1))
ROYALTY AND PROFIT SHARE
A licence holder on behalf of itself and the Contractor shall discharge obligation to pay royalty
out of gross production under the Act in respect of petroleum produced from the Contract
Area, by delivering to the Government 12.5% for onshore/shelf areas and 7.5% for offshore of
total crude oil/natural gas production prior to cost oil and or cost gas recovery at such royalty
otherwise to be delivered to the Government in such manner as the Government may direct.
I think you'll find they do have that option actively in mind, and that is probably what EAH was established to do (apart from ringfencing the rig from risk of administration last year). What does it cost in time and money to find an available rig and get it shipped out to East Africa from Australia, and what premium would you pay for one that is sitting on your doorstep, fully serviced, with crew?
"Frankly shocking however is the bit about the company being pleased to announce that they don't have a clue what to do with their expensive, newly acquired rig for the next 4 months, other than burn available funds to keep a rig crew on standby!"
I think the clue is in LB's most recent interview, where she mentions as an aside interested parties coming to look at the rig. I'm guessing that it's readied for a short term drilling contract with our near neighbours