Member Info for Blubay

There is no open access information on the Internet about the company as it’s establishment was only published yesterday. Google was just using this morning’s post by Expon3ntial’s to name the nominee directors. All the directors are named on the company registration documents filed in Tanzania but not on the public search function (you could request them but not before Monday when they’ll probably be known anyway).

Google says the source for that info is LSE, so basically from this forum! AI is only as reliable as the material it feeds on.

Where is Google AI scraping that information from? Is it just from speculation on chat boards?

Blaisse and Cope are the directors of East Africa Holdings and I wouldn’t be surprised if both were on the board of Songwe, along with Eyre (who is based in Tanzania) or Dighe. No idea, just a guess, but I suspect three out of those four.

That’s not quite how it works. The mining company is real and a legal requirement in Tanzania. The government owns a non diluted share in it and appoints two directors to the board. So it’s currently an 83% owned subsidiary of HE1 Global but far from a shell. It owns the mining licence rights and operates the mining project. There will then be another benefaction company formed to process the gas in Tanzania before export, and that company will own the gas output. HE1 acts as the majority shareholder (controlling interest and major beneficiary).

They do sometimes update on a Friday. The licence is awarded to Songwe Helium Ltd so I presume all the agreements have to be signed and entered into force before it can be shown as ‘active’. But I can tell you that Songwe Helium Ltd has now been registered as a company in Tanzania! Good news.

186250796 SONGWE HELIUM LIMITED Dar Es Salaam, Kinondoni, Msasani, 14111, Oysterbay, Toure Drive, 369, -, Kilwa House Registered

It wasn’t ‘the plan all along’. The plan was for first production before the end of Q2, as advised to the market in RNS from the funding raise in September through to April. The plan then changed to Q4. These things happen.

The initial five Songwe directors have to be named in the final documents for signature in the Framework Agreement (three by HE1 and two by the government)

I don’t think thats anywhere near as relevant as being CEO of RAK in UAE

So the last NED was dropped to save cash burn, along with consolidating back office functions and surrendering dormant prospect licence fees. New NED suggests positive plans in progress. And he has an interesting recent CV.

Yes, I did wonder if they’d want to hold out on the CPR for proven reserves but maybe they hoped that would be the opinion. I think they’re pretty confident with the internal modelling though so, as Lorna said in the interview, now a matter of trying to push those numbers up the scale from 2C to 2P.

I’ve no problem at all if anyone prefers to take a more liberal interpretation or a higher risk approach. I’m just going on the definitions and classifications used by the CPR, which I guess might seem conservative to some people.

“Definitions

Contingent Resources are those quantities of gas estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality.”

No way of knowing, but it’s hard to imagine a major partner coming into the JV before they book proven reserves, unless they want to take higher risk for a larger share (which I think HE1 might wish to avoid in the hope of retaining as much as possible). The project is just entering the appraisal phase and I think the default option remains the local banks (considering the Local Content Regulations), who should have first option where loan finance is required, on financial terms approved by the TZ government. For example, as outlined by HE1’s legal advisors on the Rukwa project

“As well as requiring stakeholders to transact business only through banks in Tanzania, the Local Content Regulations require a Stakeholder wanting financial services with respect to a mining activity to only retain the services of a Tanzanian financial institution or organisation, unless the Mining Commission approves the use of a foreign financial institution or organisation.”

https://bowmanslaw.com/insights/amendments-to-tanzanias-mining-local-content-regulations/

I had this thought too but it felt a bit conspiracy theory at the time. The immediate incentive would be cash balance position at the financial year end (yesterday), but then again being able to book early H1 revenue might have been preferable. I think redesign of the processing for high grade CO2 production might be plausible. Or maybe BNL simply have no money.

“ · Fractured Basement interval flowed a sustained average of 5.5% helium (air corrected) to surface and up to a maximum of 6.7% helium (air corrected)

· Faulted Karoo Group interval flowed a sustained average of 5.2% helium (air corrected) to surface and up to a maximum of 7.9% helium (air corrected)

· The fractured Basement interval also flowed up to 1.1% hydrogen to surface”

At the risk of pedantry, just read the f***ing RNS. The 5% is helium, the 1% is hydrogen.

Fractured Basement flowed up to 1.1% hydrogen

HE1’s annual accounting period ended 30 June, so we’re into a new financial year today. It’ll be a while before see the periodic report but any tactical choices they made to spend or save for bottom line or cash accounting reasons will be up for discussion again now. New year new chapter, hopefully the first accounting year in the company’s history to include some ‘revenue’.

So yes, a dilution of HE1’s equity share in Songwe affects HE1 shareholders ‘indirectly’ (possibly, in terms of asset value, maybe if the market sentiment reacts badly) but it does not affect them ‘directly’ because they are not diluted (because no new HE1 shares are issued). That’s the point 🤷‍♀️

Remind what you think you ‘caught out’? Was that the one where you didn’t know the difference between a 2P classification of proven gas reserves and a 2p share price? 🤣🤣🤣