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RNS 25 September

“the Tai-3 well was successfully spudded this morning. The team are currently drilling ahead to section TD prior to running the 20″ conductor. The conductor prevents unconsolidated rock entering the well, before proceeding to drill the 17.5″ hole section.”

We’ve had updates on setting the surface conductor, and the drilling video after that, and on fitting the BOP, so I was assuming we’re onto the 17.5” section.

If there is any manipulation it’s more likely to be hostile takeover interests shorting the price than directors, what happened to Argo Blockchain for example (shorted near zero and taken over by their main creditor). However, the price can equally slide simply in absence of sufficient new buyers.

Don’t be ridiculous.

What depth are you expecting gas shows Mike? Shallow gas shows will not be news. To be honest, fewer shallow gas shows and a deeper trapped gas reserve would be a much better scenario.

As Wolf said, short term bets don’t like to get trapped in. There isn’t really an expectation of results/shows this week and some will need to be out by Friday, if just have better fish to fry. News here is more likely next week. We won’t be at notable gas show discovery depths yet anyway. They need to be at least safely through that Karoo trap layer that they were unable to test last time. Once they’re in a position to sample there it gets more interesting. Alternatively there could be fear of a snag in drilling. UK AIM is incredibly impatient, which is why good entrepreneurial businesses often find it hard in the UK.

Great to see this level of news stream, hopefully it will start to impact positively on market confidence

The 20" conductor was cemented middle of last week and they appeared to start drilling again on Friday morning, which I assumed was the 17.5" section. Working 24 hour shifts, that's 72 hours since then. They're just bolting together the BOP in the photo before testing but, like skippy says, we can't tell when these photos were taken.

My question also, I was assuming they had completed the 20" conductor and the 17.5" section casing before installing the BOP?

Definitely a possibility

Thanks, that's a good sign. I can't remember what diameter they were drilling the next sections at?

It's not 'messing around', that's just how the algorithm works. Overall, it will give a reasonable representation of trade balances at market but it's not reliable for individual trades.

Agreed, all options on the table depending on what happens across the various drill campaigns (which is why consideration but not commitment to farm out was flagged to shareholders). Also important to contextualise that this would be a major strategic resource play for the Tanzanian government if first results come off at Rukwa

I think that's still a long way out to speculate at this stage. Very different scenarios if HE1 can tap free gas at deeper levels and NHE can't tap it at their shallow prospect.

And slide 5 referencing consideration of farm out

Again, look at slide 25 in the most recent HE1 shareholder presentation on their website - modular plant based on tapping into distribution from six wells.

That's great to see

I doubt it, it's not a steady rate from spud. The first days will be slower than the later days, setting the surface conductor and so on. Then, as the diameter of the bore decreases per section the depth gained per day increases, depending on the geological conditions, casing etc. We were estimating about ten days from Friday so I'd be looking more towards midweek for a rise in expectation, considering there could be an RNS either earlier or later than next Monday (I'm not expecting one this week but people don't like to get caught out by a weekend) but by end of next week I'd expect to hear something.

Yes, it's the same post, very good and reassuring video, as planned and on schedule is exactly what the market needs to know

Isn't that just Friday's Twitter video reposted on Linkedin?

All good for now, at least we can see the drill is in a different place than it was in Friday’s video. I’d love them to say ‘operations continue on schedule’ but I accept they’re not going to do that every day.