Member Info for Blubay

EAH was created at the time of maximum financial risk to HE1, possibly as a shell to protect assets in case of bankruptcy. My initial guess was that they own the rig, or would do in case of spinning out a separate drilling company. HE1 is the sole founding shareholder.

Noble are targeting shallow helium plays, resulting from migratory basement fractures seeping upward. HE1 are now targeting the basement fractures directly.

Will that be a rig contract with HE1 then? Shallow target to be drilled on the neighbouring plot, known geology, relatively low risk for revenue if there’s available down time on a fully serviced and crewed rig sitting next door.

Either way, you don’t get to extract value from the ground in Tanzania these days without being incorporated in Tanzania and returning value to Tanzania.

They said several things, so I would keep an open mind. They talked explicitly about exploring a well head take off deal. They also talked about possible non dilutive debt financing routes to develop own production. The EWT results, the feasibility studies and the impact assessments will all roll into the mining licence application maybe in October, if that’s approved then game on. Unlikely to see much corporate development before then.

I have plenty of shares thanks, Liberum are a bunch of sharks

Translation - Liberum is the company's NOMAD and broker and that document was published to try and lift the share price for the dilutive share placement

As previously announced, "Drill stem test ("DST") results carried out on the Itumbula West-1 well calculate a minimum flow rate of 0.5 million cubic feet per day ("mmscfd") containing 4.7% helium"

Drilling deeper to basement gives them a chance of increasing on that, both in terms of flow and concentration. But we have to wait for the EWT to confirm.

Sharebel - did you really think you were going to short this for five weeks without risking an interim RNS on successful completion of drilling? The EWT test period is also shorter than you think.

That’s a relief, on with the EWT, looks promising

https://www.londonstockexchange.com/news-article/HE1/successful-deepening-of-itumbula-west-1-well/16603877

Sure, but then remember to also factor in the next fundraise to start commercial development of the field and whatever level of dilution to mcap you feel is appropriate for that.

But carrying the massive health warning that it's a broker note from Liberum, written to promote their financial interest in a massively dilutive share placement! Yes, there's useful information in it, but put it in context.

Amazing that people still play ball with this kind of phishing post on LSE boards, brand new profile pops up asking naively what's your holding, what's your target / stop price etc, sure we're all happy to help you set your short/long bets to take those levels out, no problem

Yes Pete, I think you’re right about their logic. There’s interest in getting deeper fracture data but also the hypothesis that tapping deeper hotter fluid could be more gas generative.

Seriously, you are not going to see any ‘large TR1s’ before they have a proven resource and a mining licence to extract it from the ground.

Yes, but that doesn’t solve the problem of how to model a proven asset to the industry standard formula, which is based on reservoirs. The resource (or field) estimate model has to be robust enough to meet those standards before they can announce proven discovery and leverage industry finance. It’s a bit like fitting a square peg in a round hole. They’ll get there but it requires more work than say a natural gas field.

Why would you not expect a drop? This is one of the most traded shares on AIM. Traders will play the anticipation of drilling and then sell the RNS. Then you have a five week news gap, so the price will probably drift and then pick up again in anticipation. Rinse and repeat.

Squariel - as far as I understand, the fractured basement play here is based on migratory helium transported some distance to the well location, in deep geothermal fluid, which is then liberated in hole as rising gas to surface. Water isn’t a problem, and the geothermal carrier is a bringing a near endless supply of gas (it’s not a static reservoir), the issue is flow rate. Higher up, the Karoo layer is then more like a classic trap and seal system for that rising gas, so that’s more like doing a traditional O&G reservoir estimate model, I think. The technical challenge appears to be how to develop a complex model accommodating both a novel dynamic gas generation system and static reservoir estimates in a way that meets existing O&G industry standards for proven resource estimation.

Crypt - “ You haven't done enough research.”

Classic 🤣 if you done ‘any’ research you would know the difference between a flow rate and a gas show concentration

The presentation was exactly as expected, the share price rose because it was being ramped on fake rumours for a pump and dump. It happens all the time on AIM and on this share in particular. Unfortunately, these discussion boards only really exist as vehicles for ramping and de-ramping narratives.