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At least we know what all that share distribution was for then 😉

It’s the other way around Peaky, having cash strengthens their hand in partner negotiations.

Great to see that Galactica phase 1 is turning on full production 24/7 processing from 6 wells. Great news

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03072403-6A1317990&v=undefined

All the information provided to the market indicates that the confirmed discovery has commercial ‘potential’ - if the contingencies identified in the CPR can be resolved. So far they’ve shown that large volumes of water can be pumped from the test well, and without diminishing the average helium concentration. That’s a good start. They now need to prove they can target a drill that increases the gas water ratio (yield per barrel) to a commercial level, and repeat that for five production wells, and use a small scale production plant to evidence that helium can be liberated/ extracted from water on a commercial cost basis in the absence of accompanying natural gas product (e.g. by also selling water or heat). Rising helium prices and scarcity will certainly help that scenario modelling but first things first.

Looks like the same story as yesterday and various previous occasions with a controlled distribution (transfer/selling) of shares into demand liquidity. The distribution was less assertive than yesterday but not finished yet.

They were originally put through as OTC trades and now corrected to Ordinary trades in the print at the end of the day.

Where did she say this? The only word from the CEO so far since the ESP test is her quote in the RNS.

“The ESP has effectively demonstrated that we can produce over 16,000 bpd and maintain consistent levels of helium concentrations over an extended period of time whilst managing the water disposal at surface.

We now need to increase our understanding of the Basement fault and fracture play, where we believe there is the potential to increase GWRs and helium concentrations. In order to do this, a further work programme will be required, and we will commence a strategic farmout process to seek an industry partner to help us deliver this.”

This was the only recent story I could find on the Xianjang integrated goethermal + helium project. They hosted a press visit in late November, so it looks like last summer's helium extraction pilot technology did work as a byproduct but they don't quantify it and focus reporting on the primary heating/energy benefits.

https://sn.ifeng.com/c/8oZeu5BelIR

Yes, focus needs to be on Colorado with BNL due to report half year results in the next week and hopefully update on the placement of first sales from Galactica. Should certainly be some good news coming. They were aiming for an initial mid price around $450 so could possibly see anywhere from $700-1000 if global shortage has impacted the local spot market ($1,500-2,000 is over egging expectations as they aren't producing high grade purified helium product for that market).

I can't find any production data or news from the Sinopec geothermal helium pilot plant but there have been technological and industry developments pointing to advances. Sinopec presented advances in “AI-Assisted Development of Polyimide Gas Separation Materials” at the World Artificial Intelligence Conference, which would be the basis for enhancing helium extraction membrane efficiency. Sinopec also services the International Geothermal Standard Committee, which is developing global benchmarks for integrated geothermal projects, interestingly includes their helium + heating + power project in the Weihe Basin, although helium is still characterised as an "add-on" benefit to the heating and power infrastructure in the example.

It certainly makes the Rukwa project more strategically interesting as a prospect but it’s not yet a production project or near to market so it’s unlikely to be a rapid acquisition priority to address current shortage. The key thing, apart from improving the gas flow, is to prove that the processing technology can work at commercial scale. No one is yet producing commercial helium from ground water. The only project in the world testing this is the Synopec trial in China, which operates seasonally as a helium byproduct from a geothermal energy plant. That came on stream last summer but there’s been no information yet about the results. If the Chinese have found a way to do this effectively then they may well be interested in trying to develop the process elsewhere, like Rukwa.

If Taiwan et al are pulling additional helium supply from US suppliers then there should be increased demand within the US producer market. HE1 will be supplying local customers for low grade helium (e.g. balloon industry) or/and contracting to a purification and liquefaction plant that then supplies the higher grade market. The spot price has shot up. Question is whether there’s sufficient projected shortage for the contract sales market to follow suite.

Another key lesson from that analysis is that decarbonisation is a key strategic priority in removing dependency on politically volatile commodities like oil and gas. China is going hell for leather on renewables, nuclear and electrification because they’re massively dependent on gas imports not because theyre ecological angels. Almost all the world’s helium supply is a byproduct of natural gas production. HE1 has two projects that aren’t. Theoretically it’s a very sound hedge.

Triple - HE1 gave up their licences for Eyasi and Balingida as non commercial prospects when they got the Southern Rukwa licence.

What is the scenario in which the share price rises to 10p? What needs to happen to merit that? And in what timescale?

10p?

Today's print hints at another round of controlled distribution I think, just as we've seen before since the CLN conversions. The price dropped slightly as the blocks were executed at a marginal discount to the daily VWAP (the largest trades of the day printed below the average price), rather than any sign a mystery shopper 'whale'. As previously, no sign of an aggressive dump and the market easily absorbed all the distribution, which is interesting. Familiar pattern. Have to see what happens tomorrow.

Don't think so Ben, looks like someone reorganising inventory or position, transferring share blocks between related parties as we've seen many times before. Large buyer/seller transfer/crossing, or broker-MM facilitated move? Could be just shuffling inventory ahead of an anticipated liquidity event.

Also a bunch of options issued, mostly above current market price

Yep, you could tell from last week's price action they'd cleared the 0.005p subscription and the share issuance evidences it. Good news, they have the cash to build out Galactica. HE1 already raised its share so we should be good to go for the CO2 processing and possibly infill wells.