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Yes, perhaps if that’s how they work. I don’t see any sign of breaking ground on the satellite imagery so I was hoping for clues about work schedules in an RNS. I agree they should be well in budget with no obvious snags (apart from the extra road surfacing).

My other query would be about the cost return basis of adding phase two wells. HE1 are paying 100% of drill costs for the phase one wells for the 50% farm in. But phase two drilling should be 50-50 investment, nominally f uh fed by phase one revenue. If HE1 can find enough cash to drill another well would they get also get a higher % return on it?

It’s very tempting while the rig is there but they’d need to commit an additional half a million dollars, and prior to building the pipe work for the existing six wells and the processing plant. I’d worry about the knock on risk or delay to those critical path items, unless there’s a lot of headroom remaining. I think hitting the key milestone of near term first revenues is more of a priority.

Might have to wait a bit longer. The previous TD news has come about a week after spud and then another week for lab results. But still hopeful of a hint in the TD RNS about moving to break ground on the processing site.

The trollometer is the most useful thing on these bulletin boards. The SP's been trading in similar range for more than 9 months and the trollometer often front runs RSI reversal, not always. We're also expecting completion on the final well this week, assuming no hitches, which might include plans to break ground on the processing plant site, with any luck. That would be big news as would confirm they're going into production on schedule and budget.

Have to admit a change in the wind direction did prompt me to increase my stake this morning, which I'd been putting off while the trollometer was high.

If I was advising the company I'd be charging them but sadly it's just an anonymous discussion board for chatting with strangers. The year end is five weeks away so maybe you could explain how you arrived at your "decent surplus" and why spending on another well this month is fine? Certainly possible, but what am I missing? How much do you think they'll have in the bank end of June?

$10m cash balance in December, minus

$1.5m (past costs incurred by Blue Star on the Galactica Project) - might have been paid before December balance, not sure

$2.7m (capped contribution of $450k per well) - not sure if under or over budget

$2.55m (50% participating interest share of the tie-back, installation and processing) - no information yet on this

$1.18m (associated fees, legal costs and working capital and contingencies) not sure how much allocated or free

So, $10m minus c. $8m = c. $2m free cash at December (if all of the above are fully allocated and spent in year).

We know they've cut some costs and added some, but roughly we could guess the above might leave a little under 12 months working capital for January-December 2025, but then you can add on whatever capital was reserved out of the $1.18m contingency above (plus any of the initial $1.5m that might have been already spent before the AGM), and they clearly confirmed they had enough for 12 months at the AGM. All good.

So, let's assume they now need to find roughly 6 months basic working capital for the coming year July-June (maybe $1-2m) which seems easily within the bounds of possibility, provided they don't spend extra now until they have first revenues coming in, at which point they should be fine. Alternatively, they could account for the next 12 months as a going concern by factoring in predicted in year earnings. It's just better if they have the cash and can leave open the option of reinvesting the revenues. We'll see. I've every confidence.

It's very simple Punter. Gogs suggested they push on and spend additional cash now on drilling another well (beyond the 6 wells budgeted for phase one). It's very tempting as the high helum concentrations are up there. As confirmed at the AGM in December they had $10m cash, including working capital and all planned operations for 12 months, which is great but that's only half way through the next accounting year. We don't know if they're under or over that budget. If they're under then great, but if there is that operational surplus then I'm suggesting the first priority should be to retain sufficient cash on account at the end of this accounting year (end June) to secure at least a further 12 months working capital, in order to satisfy the audit. If they were to spend above plan now on another well that's potentially a risk to future cash flow planning (unless they have a very significant surplus remaining, which seems unlikely).

Can't believe BNL will have two beans left to be honest. The 9 phase two wells were slated for development from the proceeds of the phase one project, rather than from cash reserves though. No idea how that will play out, but it will take a bit of time to develop full capacity production and I suspect both companies might like to bank some short term cash first to replenish their working capital before proceeding with more wells, perhaps next year (e.g. 6-12 months revenue might secure HE1 another 12 months working capital runway?). Just a thought.

Also, HE1's full accounting year is end June so you'd imagine they'll want to hold on to sufficient coffers to audit as a going concern for at least 12 months on that date, if they can.

There's some other minor detail in those permits, including permission at Jackson 2, 4, 27, 29, 31 for "...4"or larger buried polyethylene flowline, carrying helium, produced inert gases and water from wellhead to production equipment" (also State 9 and 16). Whereas the other wells specify "...2" and/or 3" Schedule 40 steel flowlines, carrying helium, produced inert gases and water from wellhead to production equipment."

As per the map, there also appears to be a duplication of numbers in the permits with two very different locations listed as Jackson 29

III covers Jackson 5, 7, 29, 33

II covers Jackson 2, 3, 1

I covers Jackson 4 etc

You'd have to cross check the details in content but there have been three O&G development plans approved for BNL in Las Animas county (in addition to plans for some of the early wells).

Galactica-Pegasus OGDP I - https://ecmc.state.co.us/cogisdb/OGDP/OGDPscout?OGDP=487157

Galactica-Pegasus OGDP II - https://ecmc.state.co.us/cogisdb/OGDP/OGDPscout?OGDP=483920

Galactica-Pegasus OGDP III - https://ecmc.state.co.us/cogisdb/OGDP/OGDPscout?OGDP=485299

I think they'd have to get the phase two operational development plan approved by the ECME first, and then get permits for those wells, but it's a very promising location and hopefully we'll see a plan to move on that once phase one cash flow is stabilised.

What do you expect them to say? Colorado is the main focus for development. Rukwa is pending licence. The licence application was submitted to a confidential scrutiny process, which is in final stages. All along they have said they will review the release of relevant information after the licence is awarded. In the meantime they released market updates on the offer and acceptance of the licence terms, payment of fees etc, spoke about the project at the US helium summit, shipped in more than 20 Tanzanian reporters to an on location PR event with government representatives, made PR videos, presented the project at an Africa Invest forum in London. Plus the detailed annual report presentation, slides on Rukwa project development plans, timelines etc. All that has been in addition to weekly updates on the operational progress in Colorado. It's hardly not engaging is it?

'Smart money' is capital invested by institutional and professional investors, we haven't seen anything on that scale or timing yet. It will come as the jigsaw falls into place but it's unlikely to appear during the uncertainty period unless there's a leak.

No chance of that without inside information but you'd expect smart money to start phasing in as the business dersisks. Smart money doesn't gamble on AIM.

Smart money doesn’t come in on a downward drift, it comes in early on the upward phase.

Wonder what they’re worth as an acquisition target for HE1, or whether we wait for them to give up and take their adjacent licence areas.

I don’t think that’s quite fair, although the AI seems to cover the general points.

BNL were in an incredibly vulnerable position after failing to develop the Voyager project at such a late stage (even made down payment on the processing plant) and had to dilute 90% to survive (a bit like HE1 when they failed to hit target at Tai). But HE1 were able to secure survival with another shot at Itumbula. BNL did not have sufficient resource to proceed. The challenge for HE1 was that Minchin’s initial plan for a short term shallow target revenue in Rukwa turned out to require a much bigger and longer term project. With that, the new board also looked for an alternative near term project to plug the revenue and risk gap. They spent a year looking at potential acquisition targets and BNL was a good business deal for only 10% dilution. I also think that it was literally a life saver for BNL to find a peer level JV partner rather than a vulture (although I do think HE1 may end up owning the larger part of Galactica Pegasus in the end). I’d view it as a mutually beneficial deal. If they can bring it to market then that also provides proof of concept for future acquisition led growth opportunities (HE1 has a completely different skill set BoD than BNL, and different access to capital markets, that’s where their real value lies). There are certainly risks remaining to cash burn, delays, snags etc. but they’ve never been in the stronger place as a business so it’s good progress.

Mid week I would have thought, given announcements on previous wells, maybe-Wednesday or so?

So basically the same pitch you made back at the beginning of March then?