Member Info for Blubay

Yes I’d like to see the Galactica-Pegasus development plan with number and location of wells. The capital raise was less than a month ago so it might not be immediate but presumably they had plans before raising (ideally you’d want to see an outline of the capex allocation plan in the prospectus for the fundraise). Hopefully something in the quarterly report from BNL.

It’s only April and they’ve already provided 12 RNS announcements this year. There was one last week. What is it you want to be updated about?

"Surely QHE is further along it's evolutionary life cycle and is better placed to benefit from current situation, for the forseeable future anyway? "

How is it 'better placed'? HE1 already has helium flowing from real wells to a real processing plant to real customers in the real world for real cash sales. All that development is paid for with cash in the bank and capacity in the plant for immediate expanded development to increase sales. QHE is an exploration company with no helium wells, production plants or customers.

"Farm out of what exactly??"

Analogous to BNL's farm out of the Galactica project, HE1 has a discovery project with contingent resources but doesn't have the funds to develop and recover those resources. So they'll be looking for a farm-in partner to pitch in some or all of the initial capital risk in exchange for a share of the project ownership. Limitation of that analogy is that BNL's discovery was nearer to market so HE1 are looking for a partner with a higher risk appetite by paying for further appraisal drilling and testing or/and additional data collection, like 3D seismic, before knowing whether the project will move on to early stage production.

Yes, we know BNL have 20-30 additional well locations earmarked and I think 9 already permitted for Galactica-Pegasus. They now have the cash so it would be good to see a clear plan and timeline for drilling and tie-ins as soon as they have one. Lots of positive news to come there over the next weeks. Rukwa they've only indicated using cash for maintenance so I can't really see any operational news forthcoming until they find a farm in partner, then negotiations and diligence process etc. That'll take a bit of time.

I noticed in BNL’s annual report that “the Company is targeting the commencement of sustained commercial production by mid-year 2026”, so hopefully they remain on track for that.

I’d be amazed if they published their customers’ commercially sensitive spot prices, maybe for a contract sale but even then I’d be surprised. I’d more likely expect some aggregate output and revenue quarterly.

Just to add, if the opex costs are roughly as outlined in BNL's December presentation then I wouldn't expect them to start turning any kind of operating surplus before CO2 sales kick in, maybe end of H1 (HE1's financial year end?). Proof of the pudding seems more likely Q4 reporting recurrent income by the next AGM perhaps?

"Remember those now totally discredited claims of BNL filling a trailer in 2 - 3 weeks? And how long ago was that?"

Why would we think they're not filling trailers? I'm not expecting an RNS every time there's a trailer load. The first one was the commercial milestone and newsworthy. I wouldn't expect them to RNS number two. If the plant is now switched over to running 24/7 as announced, with optimisation complete and the first six wells tied in, then I'm assuming they might be producing anywhere up to 1,000 mscf helium a month by now (e.g. $6m+ pa gross pro rata?). News of first sales contract in addition to spot trailer sales would be encouraging. The real news I think is when the CO2 comes on stream, with J27 tied in, and a plan for adding new wells.

I haven’t added any more due to the unresolved ESP results but happy with what I have pending next news from Colorado. I don’t think they’ve done any less than I would expect in the first year of licence, given they were so close to the wire in booking a discovery before the application deadline. There was a lot of work to tie up initially to evidence the necessary ‘mining activity’ and expenditure within Y1.

Yes, during which time they’ve prepared a CPR, raised funds, deepened the discovery well, built water management facilities, completed ESP testing, reanalysed the data, raised further funds, and opened a data room to potential partners.

BNL and HE1 have raised several million to advance the drilling and development programme at Galactica-Pegasus, to capitalise on rising helium demand. The processing plant is already operational with 7 wells available, plus permits for another 9 wells (cost of well drilling was originally estimated somewhere around $0.5m). The plant should be fully operational with the CO2 revenue stream added before end June. And we should hear fairly soon what the revised drilling plans are to expand production and revenue.

With the announcement today by the Company's JV partner of the successful completion of stage one of the Galactica Project development campaign, the Board of Helium One believe it is important that the Company has sufficient funds to maintain the drilling and development programme to maximise early revenue potential from the project, particularly in light of recent global events which have positively impacted the helium market dynamics.

The net proceeds of the Fundraise will therefore be utilised for this purpose as well as providing sufficient funds to maintain the Company's southern Rukwa Helium Project whilst the Company progresses the search for a strategic partner to advance this key project. Additionally, the net proceeds will be used for general working capital purposes.

Any additional proceeds raised from the Retail Offer will help facilitate an extended working capital runway.

Basically Morden to Edgeware, and Kew to Dagenham, or an area covering everything within the North and South circular.

Just for fun, this is to scale

https://postimg.cc/CdKP4mHD

Yep, it's still a very large mining licence area. You can see on the project map the distance between the Tai well cluster and Itumbula (c. 10-15km) and Ivuna to the North

https://www.helium-one.com/projects/southern-rukwa-project/

The locations of all the contingent and prospective well drilling targets are shown in relation to the mapped faults in Figure 4.1 of the CPR (p. 32)

https://www.helium-one.com/wp-content/uploads/2025/06/250624_Itumbula-West-1-CPR-final-client-release_SIGNED.pdf

The licenced area is 480km2. That’s about 185 square miles, it’s ten miles or so across and less than 20 miles top to bottom.

Galactica costs are already factored in the opex, so assuming you agree HE1 isn't likely to turn a taxable surplus then I'd consider an initial baseline of $5m net annual working capital a significant inflection point for the company' sustainability. Any additional income then arising from infill wells or Pegasus field expansion about to be kick started by the capital already raised should then be reinvestable, in a virtuous circle for the medium term, while the Rukwa licence hopefully could be maintained until it's farmed out, successfully appraised or sold.

For example, even at a cautious 1,200 mscf helium/month at $500 (just over half of processing output capacity), plus 40,000 mscf CO2 at $400, then you'd be looking at more than $17m gross annual and more than $10m net, split between the two partners.

Plenty of information published on the revenue and cost assumptions though, which can be applied to known and projected flow rates from existing and added wells to estimate.

Sure you'll get aggregated revenue and expenditure across the quarters/years but I'd be surprised to see contract prices published.