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For the Predator in Rukwa it’s probably marginally cheaper to warm stack the rig over a 9-12 month pause than to dismantle it and transport to a yard and then reassemble, test and re-commission. Last time they reassembled it they broke it and it’s too heavy for Tanzania’s highway truck weight limit in one piece.

There is also Tai, if the they choose to go back and deepen it

The CPR does indicate that the company’s unpublished development plan was to start on drilling the first five wells from Q4 this year into 2026 (subject to identifying well locations etc). Not sure of that was from the FS drafted last summer, might have slipped a bit by now but great if that’s the still the plan for a significant undertaking this year. We do know that initial tender EOIs were already done for both wells and processing plant. Hopefully they’re cracking on now with whatever appraisal is needed.

Lots of good questions, on which we can all only speculate. From the AGM in December, we do know that strategically they want to hold on to as much of the project equity as they can for as long as they can (when the CFO spoke about 'going it alone' for as long as possible). The business rationale for that approach is fairly obvious, as the value of the project should increase with each stage of de-risking. Any new equity partner would want a much larger slice of the pie at an earlier stage of risk than a later stage. My hunch is that they look for some kind of (literal) pump priming loan from the TZ banks for appraisal activity, if the banks consider the CPR plus government endorsement enough , with or without an off taker agreement (that kind of independent assurance without any actual collateral security wouldn't be unusual in TZ mining projects). As Lorna said in the interview, moving the CPR numbers up is the objective. It's only a hunch, but if they've already commissioned a hydrological study then it sounds like water flow rate and well spacing would be the key to the investment decisions, and I'd guess that proving that the optimal flow rate model works with an ESP seems a logical step, maybe side tracking to open up the catchment, maybe drilling a second hole (?). All those numbers will be needed to design the plant and it's a completely novel/unique play so I wouldn't expect them to just launch straight into drilling five deep wells without more preliminary steps. Just a guess obviously.

If you listen to the CEO's most recent interview she's says that the CPR is a starting point in a unique process of appraisal that will proceed in stages, leading ultimately towards a final investment decision. Hence...

"this is a great starting point for us. We're now in a position that we will need to undertake further work. ...that further work and next activities will include, appraisal, further feed studies, ultimately, the all important FID" [i.e. Final Investment Decision]

"So there is still a lot of information, to be obtained in this process, which will affect the final design of the early production system and also the central processing facility. We've also, probably worth noting, recently commissioned a hydrogeological study. ...given the nature of this unique play, which we hope will ultimately further enhance our understanding of this play."

"Certainly with, you know, further appraisal work. We're confident that we can get these numbers moved up the PRMS resource classification ladder and, ultimately, they will become bookable as reserves." [i.e. as commercial rather than contingent]

"As previously mentioned, we now need to certainly start looking at the end result. You know, we need to increase, up our engagement with potential off takers here, as that will ultimately underpin, you know, all of the necessary financing options that we have available. ...And the CPR will certainly certainly aid those conversations going forward."

https://www.youtube.com/watch?v=yEuCB4I6oDk

…but of course to note that HE1 only get half the profit from Colorado, so long as they only own 50%, but 83% of Rukwa. So whether that works out as a similar net income or not will depend on costs and future equity splits.

Flow rates are the same in Colorado as best predicted flow rates in Rukwa (if proven with artificial lift) and at less cost to recover, so should be a better profit margin per well per year (but a smaller project resource and lifespan overall). Rukwa is large scale and long term. Colorado was acquired specifically for its near term low cost profile.

The quote refers to HE1’s project acquisition/farm-in strategy, not a JV for Rukwa. Long term that still looks like the strategic path to corporate growth, if they can prove the concept to revenue stage in Colorado (personally, I think the business strategy of the current board is the most attractive thing about HE1, given their expertise in capital markets and gas commercialisation distinguishes them from all the other small ‘explorers’). I can’t imagine them entertaining any joint project with MSMN though.

First production from Colorado 2025

First production from Rukwa 2026

I think we can assume the initial $1.5m down payment was made before HE1’s December cash statement and BNL’s Q1 statement, with the contributions to drilling on a per well cost basis in Q2 (HE1’s financial year end), leaving the balance for the processing plant and pipe laying not yet accounted for (Q3/4) as still on the drawing board at end Q2. I think HE1’s half was scheduled $2.25m, which should be ring fenced from last year’s raise (CFO confirmed it was outside the $10m cash position in December). Not sure if BNL would be paying their half from funds, or a raise, or if they might have credit with the provider after paying towards the Voyager plant that was never built). It should have been covered in the DD for the acquisition anyway.

All in the published plan. Three components, an initial sum recognising BNL’s prior work on the project, then up to $450k per well drilling costs (plus half of any overrun costs, if any), then half each party for the cost of processing plant and infrastructure.

They answer that they have less than two quarters cash remaining but… “with the new farmin agreement and continued access to funding, the Company expects to be able to meet its business objectives.”

ie. they depend on the combination of HE1’s contributions and their own access to market equity to complete planned operations in Q2 and Q3.

According to the statement and their April ASX, the resolution would then be revenues from Galactica which at the time of the statement were scheduled to begin end Q2 (now expected Q4). I’m sure they’ll have a solution in plan.

I’m not at all bitter. I’m content and in profit holding the same number of principal shares I held a month ago, which is the same number I held 18 months ago after. I’m content to have sold the additional risk shares I bought in June, which I look forward to buying when the steps to first production revenue are back to where they were. I really couldn’t be more relaxed and optimistic. You seem quite angry or bitter, I’m not sure what about.

If you agree with the factual summary I posted then I honestly cannot understand why you take to raving about it. You’re a very strange person.

I’m an investor not a trader, but if you ‘understood business’ as you put it, then you will have read precisely the state of play from the document. By their own declaration, BNL had 1.8 quarters of cash runway remaining at end March (taking them to approximately mid September). They declared their operational viability beyond this would be contingent on (a) payments from HE1, (b) their ability to raise equity financing in the market. They were confident in this viability to complete the two quarters so we should assume that’s the plan.

Who said anything about capex? The observation was about cash flow, which is explicit in the quarterly statement. Look before you leap.

Please refer to section 8 in annex

https://www.bluestarhelium.com/wp-content/uploads/2025/04/61261805-1.pdf

CPR suggests the plan is to start drilling the first 5 EPS wells in Rukwa in Q4 (pending confirmation of locations, schedule and finance).

Previous RNS indicates processing plant and pipework to be built in Colorado to be on stream also in Q4 (previously planned for Q2).

BNL's Q1 financial statement also predicts the end of their existing cash runway a couple of weeks before Q4 (subject to further funds from HE1 or an equity raise).

Exciting times, plenty of news due soon.

Punter - "Do you understand LSE here does not stand for London Stock Exchange lol? "Reported" trades on London South East are notoriously eh....carp!"

Who here mentioned LSE? No-one did except you. You are way too busy working these boards every day trolling and criticising everyone else rather than discussing anything substantively to do with the shares. Breaking the posting rules, getting your accounts deleted, popping up with new ones, for years. It's not healthy.

Still waiting for an answer to the question 🙃