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The next RNS is expected to give us the numbers on the size of this ‘discovery’ (although apparently it isn’t quite that yet).
If the numbers are good enough (and let’s face it they are taking some time to produce them) then the only remaining issue for a clear discovery after that will be evaluating the flow rate.
Electricity power - one significant assist here is that they have abundant on site power, either from geothermal heat or harnessing their own free hydrogen.
I remain optimistic.
The company's focus is now on appraising and evaluating the resource potential at Itumbula West-1," chief executive Lorna Blaisse said in a statement.
Cricket I don’t think it was bad news at all just bad messaging. The hot stacked rig, which they will need more money to use, and the EWT in 6 months gave the wrong emphasis. The next big news which is still imminent is the size of this massive reservoir with 4.7% helium concentration.
There is nothing but positivity news here so presumably the drop in price is because of expectations for another round of funding.
However the scoping of the size of this discovery is still going on and will come first in my expectation.
I have no doubts that given that they drilled 41 metres into the reservoir with good flow rates and 4.7% concentration that when they announce it will knock everyone’s socks off.
LB confirmed that the next piece of the jigsaw is announcing how big the Helium resource is. They have the data and just need to analyse it. The confirmed discovery of 4.7% concentration was verified by GeoLog a world leader, who are on site.
But from what LB said in the interview it really is very big indeed.
1. We need to see those reservoirs scoped. Hard to believe they haven’t done that yet but maybe they need University input to understand what they’ve got - especially if the resource is renewing itself.
2. They need to design a production facility and price it.
3. In parallel to 2. they need to arrange bank finance.
4. They need to have an off take agreement.
Have HE1 got the internal resources to handle all that? Finance yes but not sure on production or sales.
Some of those things could take months. What we need asap though is the size of the discovery.
The fact that we have no timetable to declaration of a discovery and its size indicates we will get that all important announcement soonish.
That is maybe not more than a month after the announcement of Helium presence at4.7% on the 5th February. I’d like to think it will be early next week but then why would they raise cash before making this announcement when the SP should shift sharply upward.
So maybe not next week then? I am happy that the reporting of such high concentration puts a firm floor under the risk of this baby.
Now we have a discovery’ although I don’t think they’ve called it that yet, we need the size of these reservoirs. That will tell us what the multiple of billion cubic feet(bcf) we are looking at. I imagine that this will be quite high given the concentration of 4.7% . Each bcf is worth approximately 10p a share.
We don’t have a time line yet so I imagine we’ll hear something in the next week or maybe two. In terms of risk the drill has been executed perfectly and we know that the the helium has not migrated so we have a firm base from which to move forward.
Like all the posters on this board I don’t have a crystal ball but I am optimistic that LTHs like me with a high carrying cost (10p in my case) will see our money back and more.