Member Info for Blubay

That's right Hemo and exactly the kind of breakdown of development planning that the market will need to see when the company is in a position to present it. At the moment we know the model demonstrates positive economics for the company at 20-30 wells with uplift (compared to the original development plan for Tai based on 6 wells). Hopefully, they will be able present some kind of sequenced roadmap for commercialisation once they have the licences or confirmed reserve estimates. We know they've done that preparation on commissioning and costing for the feasibility study and a convincing development plan would do wonders for the SP but I guess we have to wait for the licences first.

They're perfectly capable of pumping the share when they need to do that, as they've done numerous times. There's no need for it just now and they're right in the middle of an acquisition negotiation. News flow from BNL should start tomorrow with the Colorado drill permits approval, expectation of first spud date etc. I'm not sure if HE1 will RNS on the project before concluding the deal. We'll see.

I suspect they’re trying to damp down the insane level of short term trading attention this share has attracted recently, as they seek to transition from a volatile exploration venture to a more stable producer. The kind of bigger financial backers they are courting would be put off by high volatility. On the other hand, loads of positive news lined up so I don’t doubt the trading hoards may return for spud dates etc.

Yes that’s exactly the kind of consideration that will go into the economic modelling, along with energy/fuel supply, transport logistics etc We know the project is viable at scale. The question is about the roadmap to deliver that, and perhaps whether the government also has any interest in strategic infrastructure investments to support a new industry

Not a charade at all. Applying for ML was a necessity as the PLs reached their final expiration dates, so they would either have to give up the Rukwa project altogether (as they appear to have done in Balangida or retain it as they have done in southern Eyasi). As you well know, estimates of 138bcf is irrelevant other than as a headline to garner prospecting interest and early capital. A southern Rukwa development project might more likely target 1bcf recoverable, maybe 5bcf. The question is whether it can be built along the lines of the Colorado project, with initial investment sufficient to fund the scaling up, or whether the logistics of developing in such a remote area are worth pursuing for a small company like HE1. Whether they develop it or farm it out or sell it who knows. Either way, the venture will be worth far more with an ML than without and abandoning it after proving it up would be non sensical.

We used to have great discussions on this board about licence areas, rig movements, supply chains etc. All that's gone since the filtering and name calling brigade arrived. It's a pity.

I think what is more concerning for genuine investors is this tag team abuse of anyone who asks questions on this board. There seems to be a concerted team effort to filter or disrupt any kind of sensible discussion thread. It's quite bizarre.

You're being ridiculous, there isn't any negativity at all in the question. Obviously I've read the RNS, I clearly said so, as that's where the information came from. I then cross referenced it against the company website, which is out of date, to try and work out the relevant licence numbers from those project maps against the slightly vague geographical descriptions in the RNS. My question was, did I understand it correctly? It's hardly trolling anyone is it?

What on earth is 'rogue' about asking a basic question that's fundamental to the investment case? There's not the slightest hint or ramping or deramping in the post. It's a discussion board, why are people so paranoid about questions for discussion? It would be a lot more interesting than emojis or cut and pasting old news.

That would be fine but the company website hasn't been updated in a while so it isn't consistent with the RNS updates.

I've read the RNS, that's why I'm asking for confirmation. If you can answer the question then great, if not that's fine. No need for abuse.

Can anyone help confirm what licences HE1 now hold? If I understood correctly from the RNS, they retained only the two licence areas covered by the ML applications in Rukwa (101712/2015, 101713/2015), plus one prospecting licence in the Central Eyasi Rift Basin (PL 11136/2017), while relinquishing the whole of the Balangida project, but acquiring a 50% stake in the Galactica project and in leases on 246 km2 in Colorado. Is that right?

So, this looks like a much more selective portfolio focused on a company strategy of development for production rather than prospecting?

I don't see that as a problem, quite glad to see the back of the all the sentiment trading to be honest. Hopefully this share starts to trade on deliverables over the next 6-9 months rather than imaginaries.

Am I right that it was still on the cards only three weeks ago that the agreement should proceed for the trial equipment to be installed this quarter?

"The signature of the binding trial agreement between Quadrise, MSC Shipmanagement Ltd ("MSC") and Cargill NV ("Cargill") has been subject to delays, however, the parties are collaborating positively to finalise as soon as possible. Upon signature, installation and commissioning of the Company's trial equipment at the MAC² terminal is planned in Q4 2024, ahead of fuel production and the Proof-of-Concept tests commencing in early Q1 2025. "

At the risk of repetition for anyone who didn't read the this thread from the beginning...

The meeting documents for the ECMC public hearing on BNL's Pegasus-Galactica development plan are uploaded and include a Director's recommendation for approval without amendment. Meeting Wednesday after UK close of trading, should be livestreamed if anyone wants to watch BNL's presentation of the project.

https://drive.google.com/drive/folders/17Cc5Kau5rN0BvrY2ibCqriFRkjWyB5U4

Hopefully negotiations can be concluded over the weekend of the helium summit when Laura is in the US and a signature/announcement next day on Monday 31?

No worries at all, I think they’ve done well to pull this off after a year of looking at acquisition opportunities alongside the Rukwa project. BNL are quite vulnerable, I’d have more worries for them than for HE1 at this point. Looking forward to a stream of good news starting tomorrow/Thursday with the permit approvals.

Enjoy

“ I am only interested in what HE1 have said to the market (that is what binds them legally in the UK).”

Is this a joke? I agree it may been mildly remiss of them not to mention it but an RNS is just news, it doesn’t alter the legality of the agreement. I think it’s a good investment but there is no doubt at all that acquiring a 50% legal ownership of this project means 50% of the proceeds and 50% of the liabilities (for the project not the company). Why on earth would BNL sell half the project and retain 100% of risk? I have no doubt that HE1 and their lawyers will be all over the detail of the development plan checking BNL’s geological, engineering and cost assumptions before signing. And if BNL do over extend themselves then I wonder if HE1 might buy them out anyway.

HE1 are acquiring a 50% legal ownership in the Galactica-Pegasus project (including the licence areas). They are farming in to the venture for half the profits and half the liabilities. ECMC regulate the drilling permits not the acquisition agreement. Drill permits by Thursday, acquisition deal by 31 October.

I remain reassured that no-one from this forum is on HE1’s due diligence team.