Member Info for Blubay

That’s right, the CO2 concentration was beyond initial expectation when prospecting so they took a decision to develop the field in a combined approach as both gases are in commercial concentration.

Yes, all good with both helium and strong CO2. Hopefully State 9 should help to raise the helium average closer to 2% overall.

They’re not “25% down”, the spread on ASX is 0.007 / 0.008. SP hasn’t moved.

Great progress with the Galactica project, not a hitch so far in a faultless drilling campaign (albeit shallow vertical wells) and every one a commercial producer so far. One more well to go at State 9 in the middle of the field where they might hope for a higher helium count.

I guess so, just musing in the absence of much else to talk about :-)

Primarily, HE1's mining rights in Rukwa need to be transferred to the new venture company that will operate the mining in collaboration with the government. For example, just hypothetically, if HE1 simply had the licence awarded unconditionally they could just sell/lease their rights to some multinational or the Chinese who the government might have a tougher time negotiating with ;-)

HE1 have accepted the terms of the offer but those terms will include a range of conditions to be satisfied before the award of the licence. Once the ML is awarded to the company have ownership of those mining rights and can (in theory) transfer that ownership if they choose. I imagine there's an understanding that the regulatory approvals and contractual arrangements for the framework agreement are tied down to coincide with the licence issuance. But we'll see.

More ESIA visibility in Tanzania for the HE1 project, this one on skills training for women (and some nice drone footage of the rig hot stacked at ITW1 pad)

https://youtu.be/jWA-asKCzfc

It’s been discussed a thousand times, but there is no reporting of ‘buys and sells’, only trades (every trade has a buyer and a seller). Websites like LSE use an algorithm to show whether each trade was above or below the market mid price at the time stamp of the trade. Because there are a range of market makers some ‘buys’ are below the mid price and some ‘sells’ are above.

The basement helium source in Rukwa is different to Colorado, the gas is not ‘free flowing’ but transported in water, requiring artificial lift to optimise.

Odysseus - “He1 have not responded formally to the ML. Yet.”

RNS 31 March - yes they have…

“The Company has formally accepted the offer of a Mining Licence ("ML") for the southern Rukwa Helium Project as issued by the Mining Commission ("MC") in Tanzania”

$3m for what?

Yes agree, I was also expecting there to be some incremental upward drift in the SP with increasing confidence in the Galactica project delivery following the positive news train but we haven't seen enough new demand to support that (and a lot of market game playing to override it). Like you, I'm quite comfortable holding here for the story to unfold as I'm pretty much on a free ride now after taking the risk to load up on the 0.25p raise and then reducing my holding again when that bounced back. I realise some people are probably carrying heavy bags if they haven't left by now, or may not want to come back in having had fingers burned in earlier years. But it's a very different company now with a different strategy and opportunities, so we'll see how that goes. I still see this as one of very few AIM explorers that could make it as a producer longer term, if they can prove the acquisition for growth strategy.

I think you need to look towards information that the market does not already have, or risks to be removed. The plans for Colorado have been clearly set out with expected sequence, timescale, costing and revenue return. So far that has gone as expected. There is a level of risk reduction if all drills completed on budget without delay (nearly there). I would not expect ‘first revenues’ to be full revenues but if they can get even the first well tied into production on schedule that would be a huge milestone ticked off. But it would still be performance as expected and therefore priced in to some extent (with a boost for derisking). A larger stimulus for the market has to come from unexpected or unannounced development, which comes down to the deals and confirmed development plans for Rukwa. It’s a large long term project, 10-20 years, so again wouldn’t expect that to materialise all at once. But the market impact of any positive financial news could be significant. We’ll see.

Not forgetting that that their Nomad, who will give the advance nod on any major move RNS, is also the joint share broker, and one of the MMs

Dazes - as you’re sharing inside information on a public board, maybe you could also help us by explaining the mechanism they will use to raise shares by 14 May without notice of an EGM?

But HE1 formally accepted the conditional offer of a mining license at the end of March (see RNS). That’s done, so now they’re in the final stage of regulatory processes and negotiation of a framework agreement.

"And why does it take weeks, almost months, for He one to reply to the ML"

Because it’s a $100m contract negotiation ver 10-20 years between government, financiers and companies across multiple jurisdictions.

Helium can be commercial in very low concentrations (under 1% in free gas reservoirs). The helium concentrations from Rukwa are high, but more challenging to process from large quantities of water. The predicted (but yet to be proven) optimal production rate from the ITW1 well is very similar to the planned yield from the State 16 well in Colorado, but at higher cost/risk. But the field is on a much bigger scale, so potentially bigger returns over the long term (pending CPR assessment of resources). So yes, the reason the share price dived was because the ITW1 flow test results were not as spectacular as some shareholders’ imaginations. But it’s certainly a big and significant commercial development project.

I would guess that the SPV will take loans from Tanzanian banks, in stages, using an off taker agreement as guarantee. Although it’s possible they don’t have an off taker until they’ve completed the initial appraisal stage.