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Thanks. Hopefully we get details in the presentation.

I think that's unfair. I think they've done a great job in advancing a uniquely challenging prospect to this stage. Not done yet by a long way. It was always a gamble but the new board and team completely turned around the prospect after the previous board's failure with the shallow drill strategy (which NHE are still pursuing it seems). If they pull this off, and if the processing technology develops to meet them, then it's a geological game changer for the helium industry.

MC - I'm looking for the interest that should be paid on the CLNs, if repaid in cash (other than in circumstances of default). Do you have a reference?

I don't think it's misleading. Helen's not telling anyone else what to do with their investments, just reporting personal losses. Although any dependence on AIM shares is always a bit concerning but I'd only be worried about posters encouraging others to top up/sell/hold at the wrong time (and there's plenty of those on LSE discussion boards).

I agree, it’s a bold and pioneering project. If they can pull it off with improving technology then it will be a game changer. All eyes on first season results from the Chinese pilot plant.

OK, Im looking at the design and photo sequence of DSE’s McAuley modular processing plant in Arizona. They are using PSA membrane process to extract helium but I don’t see any kind of preliminary fluid degassing stage as they start from raw gas not fluid? What’s the story, should I be looking somewhere else?

https://www.desertmountainenergy.com/holbrook/#plant

Ten day VWAP seems to be on a slightly falling trend but holding up around about 0.78p (implying a notional retail opportunity around 0.63p if the offer was made today). But we’ll have to wait for the qualifying date announcement after the meeting to estimate an actual price.

See slide 8 on DME’s presentation for the Holbrook project

https://www.desertmountainenergy.com/wp-content/uploads/2022/04/Drilling_Web_04262022.pdf

I thought DME were multiple casing their Arizona wells ‘through’ the precious water aquifer to ‘minimise’ fluid extraction/contamination, and then perforating when they reach the water free gas zones beneath? Where is this ESP fluid producing helium well exactly?

HE1 is not targeting shallow helium gas reservoirs accumulating naturally from degassed groundwater (they tried that unsuccessfully, as have NHE). They are drilling a deep water system to extract the fluid, and then degassing it in the first stage of the processing plant (followed by helium separation from the gas). It’s new technology but the first commercial pilot plant has come on stream this year in China (pending information about its productivity and cost effectiveness). In that example they built a geothermal energy plant and the helium extraction is secondary, attached to it.

https://www.sciencedirect.com/science/article/abs/pii/S1342937X25000619

https://theelectricityhub.com/sinopec-unveils-chinas-first-geothermal-power-helium-project/

I can see how confusion could arise from the headlines about helium concentration rather than volume (i.e. it was 5-7% helium in the gas, but the gas was only a small % in the fluid flow). It was a bit cheeky not to mention the gas water ratio at the time, although the actual helium recovered versus the untested potential was there in the small print.

Just to add that we knew the challenges from the day of the EWT results last August, which is why the share price took a bit of a hit then. Just for comparison, the company’s ‘best case’ scenario for the Itumbula discovery well then (including unproven artificial lift) was similar to the gas already flowing freely from the State 16 discovery well in Colorado (about 6Mscf/d). On top of that, no one in the world had ever extracted helium from water on a commercial scale at that point, not until the first Chinese plant came into geothermal pilot plant this year (and we await the results). HE1 is operating at the cutting edge of helium extraction. That’s challenging but it also leaves a lot of scope for innovation and development. If they pull this off then it’s groundbreaking, but we shouldn’t be surprised if the industry and banks want to see more proof of concept before jumping on board. I’m optimistic but it will be challenging.

It’s not ‘really simple’. It’s really complicated. The company is fully aware of the complexity and has spent months and years modelling it. The CPR provides a simplified summary of the main variables and their associated uncertainties, with estimated parameters for scenario planning (limited by available data). The company presents its best case scenario and the CPR balances that with more cautious probabilities. It’s all clearly explained but it’s not at all ‘simple’.

MrNewbie - pot/kettle?

You’re not seriously suggesting that an analyst would use confidential insider knowledge to inform a published valuation for clients?

Colorado is the key opportunity, as I’ve argued since last year. Its margins are more commercial and it’s nearer to market. Rukwa is groundbreaking but it’s still unproven, expensive and a long way from market. The more we can extract from Colorado the better for the company’s security and future prospects. Also if they can pull this off then a future corporate strategy of financing near market acquisitions looks more attractive than one of wildcat exploration projects.

BNL says

“Proceeds raised from the Placement, together with existing cash, will be applied to general working

capital to advance plant site construction/civils, acquisition and installation of gathering system and

production facilities at the Galactica project.”

HE1 says

“to continue to fund the USA Galactica helium-CO2 development to first gas”

Calm down MC. We’re all asking the same questions. We all want to know what the £4.5m is for in Galactica - (a) why it’s needed when the previous raise was fully funded to first production, (b) what it is to be spent on, and whether that goes beyond first gas production, (c) whether BNL are making the equivalent contribution to same ends.

No Shipwreck. If you read the RNS, the allocation clearly includes £4.5m for Galactica.

Exactly. BNL are allocating approximately £2.19m 4.5m AUD) for their 50% to bring Galactica into early production and we are allocating £4.5m for the same objective. It may be that they already had money down on the processing plant (they made down payment for the Voyager plant that was never installed). Or maybe we are raising for second stage well drilling and they will need to raise again for that.