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Sorry for losses. Unfortunately that’s just the way it goes with early stage AIM explorers, highest of all risk/rewards really. The company should do fine from here as it transitions from explorer to producer, hopefully the serious toil is behind now although still a few risks remaining.

Obviously they can spend the money any way they like but the acquisition RNS is fairly explicit. They also don’t have to do it immediately. For example, BNL and HE1 could just as easily choose to bank 6-12 months profit (to end 20025 or summer 2026) to secure working capital before starting out on phase two investment expansion. Or they could retain half the income and reinvest the other half. Less than $0.5m per well, and HE1 only pays half. Nine wells, $2.25m contribution, less than 12 months income. I don’t see why bank finance would be required, although it might speed things up and the income would easily service the loan.

The first step in Rukwa will be for appraisal work, either a flow test with a submersible pump at ITW1 or deepening Tai or drilling a new well. That doesn’t require $100m, just first phase financing of some kind.

No, she hasn’t said that at all. The announcements to market suggest that some or all of the profits from the first six wells in Colorado will be reinvested to drill the next nine wells in Colorado. Rukwa is a different project and its financing will be ring fenced in a separate company structure.

“ Im really keen for this to become a 30p stock again like the old days - question is - is it possible? ”

30p with 6bn shares would value the company at £1.8bn! Growth to 3p and a 10x share consolidation might be more realistic in the foreseeable.

It's highly commercial, and probably as commercial as Colorado is. It's also larger scale and longer term, so ultimately more value to be extracted over time.

That's nonsense. You can't extrapolate share price from estimates of prospective NAV. Focus on what they can realistically get out of the ground and bring to market, over what period of time, at what cost and profit.

To be fair, the current board would have to take the rap for failing to hit the target on the first attempt to go deep at Tai as that's what crashed the prospects ultimately, but they've done well to rescue from that situation.

They rescued the company from almost certain bankruptcy after Minchin's failure with cheap shallow drill targets at Tai. They've completely turned that around with Lorna's change of strategy to go for deeper and more costly drilling to the fractured basement. It paid off. The share price is up 400% from that emergency placing, and they haven't diluted much since then. Definitely the number of shares in play is a real limitation on price movement and probably they'll consolidate when the time is right. Not long to go now and they'll be in commercial production at Galactica and into longer term development in Rukwa.

Don’t know if that makes sense but basically, the 99% CO2 could be as valuable as 2% helium (while the 0.4% helium doesn’t add much). So it’s good commercially but maybe a bit below par. It’ll probably make as much as a decent helium well but less than some of the other wells. Still broadly on track for the original acquisition earnings model, I think (?)

I think it’s more like $10 mid price for the CO2, so running the well at 350mcf/d might gross more than $1m a year, plus the helium. I could be way out.

For comparison, my working assumption is that an average of 2% helium and 50% CO2 might be enough to net an average profit of $1m per well (divided between the two companies), of which 2/3 helium profit and 1/3 CO2.

The CO2 is highly commercial, especially if beverage grade, although not as valuable as the helium. There’s also zero contamination. The flow from all the wells is gathered together for processing so the average remains important. For example, if J27 and J29 flow down the same pipeline at similar rates you might have have an average of say 700mcf/d at 73% CO2 and 1.85% He, which looks good. But another high helium result from either Jackson 2 or State 9 would be good.

Jackson 29 - helium concentration of up to 3.3% (air-corrected) and 48.66% CO2

Jackson 27 - helium concentration of up to 0.41% (air-corrected) and 98.31% CO2

Great progress with drilling in Colorado. Jackson 2 now spudded and drilling intermediate section. That leaves State 9 for the sixth and final drill, just north of State 16, although there doesn’t seem to be Form 2 permit for it (takes a couple of weeks). If J2 is similar to J4, and S9 is similar to S16, then there’s a good range of He/CO2 concentrations and flows.

The advantage of the two stage processing plant is that they’ll be gathering all the wells together and extracting the CO2 first, leaving a helium concentrated outflow to process at second stage. J27 will add a lot to the first stage and a little to the second.

PS. good effort trying to turn unrelated positive news for another company into a ‘raise’ for HE1 🤣

They’ll be due maybe $2m from HE1 for the four more wells drilled in Q2 plus up to $2.25m towards the plant, so they’ll may be OK depending how payments out are staged. And HE1 should have plenty of headroom for their own basic working capital this year if all keeps going to plan. We’ll see.

Note they received AUD1.7m from HE1 in Q1, which is basically $1m, so they’ll be due a lot more for completing the new wells.

And their main source of cash comes from the HE1 farm in, most of which they will need to pay out to service contractors. Their staffing is close to AUS0.5m / quarter.

All depends how the processing plant is funded. HE1 budget was $2.25m half share. Hard to see how BNL match that from cash but they previously paid towards a similar plant for the Voyager project that was never installed. Maybe they have some kind of credit note with AICX? 🤔

Quarterly activity update from BNL confirms, “First helium production remains on track for H1 2025”.

Great news, motoring along n Colorado. Jackson 2 and State 9 wells to drill, modular processing plant to install, initial gathering pipework to lay.

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

Not sure we’ll merit an interview until the wells are all drilled and tested. Looking for an announcement about the processing infrastructure and whether first production revenue is still on schedule 🤞

Yes, rules on Primary Mining License (PML) don’t apply to HE1’s licensing

What law?