Member Info for Blubay

“the partners will share excess costs in proportion with their respective project working interests, ie 50/50”

How much clearer can it be?

https://www.bluestarhelium.com/wp-content/uploads/2024/08/61222441.pdf

I think you need to re-read BNL’s RNS/AXS published on 28 August, it’s explicit that the farm in agreement provides for 50-50 project ownership and 50-50 liability for overrun costs.

Where did I say they will own shares? They will have 50% legal ownership of the project not the company.

That’s right, BNL crashed and burned on a previous project (like HE1 did at Tai-1) and diluted their holders to near zero to survive. This project is commercial though and HE1 provide the remaining funds for a 50% stake in it. The key risks would be unplanned drilling delays or costs. The development drills are cheap but if they do over spend then the added costs are shared 50-50. HE1 might be able to cover, not sure about BNL.

As it’s not published by the company no problem, just normal procedure for the regulatory board. It’s still up to the voting members to decide and there can be public testimony too. But with Director’s recommendation the vote is hopefully a done deal.

Read the thread, it's the draft text for the resolution recommended by the Director to adoption at Wednesday's meeting

"IT IS HEREBY ORDERED:

1. An Oil and Gas Development Plan is hereby approved for the Application Lands and five vertical wells are hereby authorized within the Application Lands, to be drilled on Applicant’s leasehold interest, for the production and development of helium gas from the Lyons Formation."

With immediate effect... etc

"DRAFT REPORT OF THE COMMISSION

The Commission heard this matter on October 16, 2024, at the Colorado Energy and Carbon Management Commission, 1120 Lincoln St, Ste. 801, Denver, CO 80203, upon application for an order to approve an approximate 4,335.40-acre Oil and Gas Development Plan (“OGDP”), consisting of five 1.30-acre Oil and Gas Locations, for the drilling of five wells on the below-described lands (“Application Lands”), for the production and development of helium gas from the Lyons Formation (the “Galactica-Pegasus I OGDP”):

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

I'm not fully up to speed with this company yet but I note the RNS says that the cash position at 31 July 2024 reflects "the seasonality of contract renewals as well as the Company's tight focus on cash management". So, I'm guessing it's not quite as simple as doing an arithmetic division on months without knowing the seasonality factor?

This looks like an interesting opportunity post-placement with refreshingly little AIM trader noise on this forum. The co-development deal with Amazon (presumably?) looks very interesting. Any thoughts from existing holders on the board's projections to reach commercial viability within this financial year? Do we know if that's based on actual pipeline customers, emerging leads from consultancy, or just reasonable aspiration?

You're barking completely up the wrong conspiracy tree (insert appropriate feline metaphor) but each to their own I guess. Best outcome here for me would be holding on to solid incremental gains at each news stage through a well managed development phase towards establishing the company as a going concern in a year or so time and a major re-rate for a main market listing, either in London or New York. I'd love this to become a 'boring' high growth share. AIM traders, rampers and shorters remain a threat to that, but a necessary evil to provide liquidity for raising early stage capital. AIM kills most of its golden gooses, hopefully not this one.

For what it's worth, I've no contact or any interest in colluding with anyone on this board. I'm not trading this share either, I'm holding going into a critical news period. I've been long on this share since April 2021, adjusting and averaging along the way to try and stay in profit for larger gains if/when it re-rates as a commercial company. Most AIM exploration companies fail. I think this one has a good chance of bucking the trend now the hardest work is done. Not without risks remaining, on balance I'm still long. Ignore the noise.

I think that’s a fair working assumption for investors, impossible to know of course. I guess the short term focus is just to get the Colorado acquisition over the line by the US Summit weekend with the maximum DD, and going over ENL’s drilling plans with a fine tooth comb to minimise those (shared) cost/time risks.

Failing to conclude the deal would kill ENL but not a major setback for HE1 as they’d end up with a lot more short term cash in the bank for 2025 than if it progresses. Concluding the deal and then overrunning the five well drill programme would be more of a challenge as they’d have to raise the additional costs in some way. Best outcome is that it goes ahead and to plan of course so fingers crossed for that outcome.

Forgive my error, I thought it was a public forum for discussing the business and share prospects rather than a forum for abusing people 🤷‍♀️

With all due respect, this doesn’t help anyone. It’s as much wishful opinion as the negative stuff is destructive opinion. The market needs facts and your first seven items are largely meaningless in that respect. Focusing on the latter points about near term confidence in the Colorado project makes more sense. If/when ENL get regulatory approval for the drilling plan (on Wednesday night), and the acquisition deal proceeds (by the end of the month), then the market has something tangible to trade on. Not long now, hopefully a tick up on Thursday.

As a publicly listed company, the inside information is also material to share price so it’s a tricky one and might explain the company’s silence since the ML submission. On the other hand, we know the complex modelling is difficult to validate using industry standards because of the unique geological system. It may be better to wait for the CPR rather than publishing a model and then having it contested.

There has been no public update yet on the estimated reserves since the drilling and testing campaign. The last independent estimates were from 2021. Revised estimates should be in the feasibility study but they haven’t been published. Probably there will be a CPR at some point.

The resource is not 138bcf, that’s the survey prospective for the entire basin, not recoverable or contingent. The pre-drill prospective for Itumbula was 5.4bcf with a P50 recoverable of 1bcf. However the migratory basement system may alter those assumptions.

“Do we know if they have done or are working on independently confirmed reserve estimates (CPR)”

CEO said that was the plan in a recent interview