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"But their play doesn't work unless the sp does go back up again so whatever they've saying now to bring sentiment and belief down, soon they too will be willing it back up."
That's not how shorting works. Shorts make profit by borrowing or forward selling shares at a high price and replacing them at a low price (or just leveraging a short spread bet). The money is made on the way down, as near to zero as possible. Pump and dump is a different strategy, often involving different people.
What proportion of HE1's own appraisal well plan for Itumbula, or just company cash flow, could be financed by hiring out the rig during the planning phase, rather than diluting? Having an income stream from EAH would change the look of the books
Under DM and the previous board, HE1 was indeed operating in Tanzania as a 'mining' company. One of the key changes from the new board and LB's appointment last year was to try and reposition HE1 as an O&G company going forward.
Puppy - "these flow rates are not what the market wanted or expected."
What was the market expecting? The RNS confirms outstanding commercial potential from this field, it's as good as any comparable helium exploration drill in the world that I can find, it's way above the best fields in North America, and it's pure gas, no carbon contamination. If they can develop this play across maybe half a dozen wells the prospects are huge. What did 'you' expect?
What was the negative in the RNS Cameron? It appeared to confirm all of the doubts of the initial news release. It confirmed the gas was free flowing and not in solution, or pumped. It confirmed an amazing 4.7% helium concentration, plus the hydrogen, way higher than other drills around the world. It confirmed an already commercial flow rate, which should be improved upon with further work. It confirmed the immediate plans mentioned before about further testing at Itumbula and further drilling at Tai, this year. It confirmed discussions are being held about production engineering, and that this marks the turning point from exploration towards commercial production. Where is the negative in this? I sense that most of the negatives mentioned on this board this morning are in people's imaginations, immediate revenue, JV agreements, dividends. None of this was ever expected at this stage.
"Even if it is in Tanzania!"
Not sure what that means, all the gas majors are in Tanzania, it has huge gas reserves, they've even building a new dedicated gas shipping terminal.
This is why risk capital won't invest in London any more, between the pension funds playing safety, the day traders out to wreck every optimistic prospect for small companies, and NOMADs/brokers fleecing them at each turn, it's a pity
That's not likely, the raise was to cover them for the costs of planning and preparing the development phase (as they said at the time). They will of course need further investment to implement the development phase, we knew that was always the case.
The main market players, producers, offtakers, distributors and state actors were all mapped out for HE1 in the 2020 Hannam research note, pages of it with details and MO of each company. They will have done extensive homework and they will have spoken to people.
https://assets.lsegissuerservices.com/original-1fdbac35-5202-4a6b-a146-d02ab8d29538.pdf
In exchange, it would be good to stop the deramping too. A nice balanced assessment of the potential and options would be good. First, the EWT is not that expensive in value terms and there are various ways of funding it, and the re-drilling at Tai. They might do a raise, they leverage a loan against the asset, or convertible credit notes, there are other options. No doubt they're considering all of them. At this point they will not want to be selling equity too cheaply as they have done in the past because they have a stronger hand to play. The parties interested in financing may also be different now. Let's not pre-judge.
The most recent assumptions from last summer were these (but those assumptions might have changed with the benefit of the hydrothermal power potential and the complication of the hydrogen processing)
CAPEX
• Helium plant US$ 38 MM
• Production wells and gathering US$ 48 MM (6 wells)
OPEX
• US$ 1 MM / year