Member Info for CrustyPete

Sorry hadn't finished!

That would have been the reason for the size discount in my view, they didn't have sufficient time to get a "better offer".

JWOZ, you are confusing two things - the price that they paid for the 50% of Galactica-Pegasus project and the size of the discount for the necessary placing. They will certainly have agreed the price long ago but they will have been unlikely to known how many shares they needed to issue to raise the Capital necessary to fund it..... that would have come later.

Yes indeedy RJ, "pot and kettle" come to mind 🤐

Lol, you have to laugh don't you - "Neil Ritson, Chairman of Helium Ventures commented:"

It's a very small world..... NR being former CEO of SOLO/SCIR who once had a holding in He1.

Good for NR, I wondered what had happened to him.

I couldn't agree more than with MarkPatrick and asimpleinvestor; as I said earlier

"for what it is worth I see this acquisition as a step on the way to that debt funding. It would always have been dificult to access debt funding without any means of covering interest and that, of course, means Income. If by raising £6m it gives them access to short term income that enables us to get debt funding and consequently enables the development of Rukwa without dilution I think £6m is a very small price to pay."

"Only through a JV or Farm-out, which are actually only different forms of "dilution" - you give away a %age of future revenues or %age of the underlying asset. So if you are a longer term investor this is a far better options (assuming of course they can monetise this asset quickly and cost effectively - which is as yet not a "given")."

The other principle benefit is diversification of risk across two geographies that are as different as chalk and cheese. Availability, access, costs, and reliability of downstream services and infrastructure is extraordinarily more complex in Tanzania than is the states and "red tape" will ensure that the Rukwa project grinds on far more slowly than I think many realise. Then you can add to that the increased political risks in Tanzania (election next year)."

"Would like an interview to explain the logic and timescales around Blue Star but that aside I feel a lot better about my holding than I did last week; even more de-risked and now also diversified and (in my view) with a considerably lower likelihood of future dilution, with income streams coming from the US. Have even reinvested some of my top-sliced proceeds."

And Lorna's interview confirms all of the above.

Common sense and if you are a long term investor and not simply a short term speculator undoubtedly a positive and sensible strategy.

This diversification "positions us a major Helium player with two SUCCESSFUL geological plays across two continents".

Note the word SUCCESSFUL. So Helium Global considers Itumbula , or Rukwa to be SUCCESSFUL.

I agree RJ, today's EWT RNS could have been a disaster if the numbers hadn't been positive but they were and without the dilution the sp would surely have risen. The next set of EWT results can surely only be equal to or better than today's so, all other considerations aside, today is a very good day. The dilution is small and the acquisition very positive, in my view, (accelerated income streams, cross fertilisation of expertise and and diversification) so what's not to like?!

Would like an interview to explain the logic and timescales around Blue Star but that aside I feel a lot better about my holding than I did last week; even more de-risked and now also diversified and (in my view) with a considerably lower likelihood of future dilution, with income streams coming from the US. Have even reinvested some of my top-sliced proceeds.

Had it not been for the Fund Raise RNS I would have been expecting the sp to rise into the second EWT RNS in two weeks time (or thereabouts). As it happens there was also an Acquisiiton RNS, which caused a dilution but that will not stop those people buying for the phase two RNS, it simply allows them to buy at a lower price. Consequently even if the 590m news shares are sold back into the market they will be soaked up very quickly but it might keep the sp down for a while. If not the sp will continue to rise once this hiccough has been accommodated - so normal service will resume after a few days, the only thing in question is the duration of the interlude.

Regarding a JV, so furstly the BoD have stated their preference NOT to JV this out but to keep the asset for shareholders. Secondly they have stated on more than one occasion taht they have been involved in JV conversations but that these will not proceed until after the EWT and the basin modelling - why, because until then they do not know what they have to "sell"!! Thirdly who on earth is going to JV until we have a Mining License?! That only comes AFTYER the feasibility study and application.

So to suggest that the BoD ought already to have firmed up on a JV is just totally nonsensical....

Sharesaplenty, you ask about the possible resource estimate for Rukwa. I thionk that is still a big unknown simply because the gas at Itumbula is not a stationary, in-situ resource; we have been told that the gas is migrating into the fractured basement from elsewhere.... it is NOT a traditional reservoir and possibly cannot therefore be analysed in that same way. More a case of where is the gas coming from, will it continue to migrate in the same way and, just as importantly, for how long?

Hello RJ.

You say "£400/barrel that equates to getting on for £9million per annum from the one test" - yes but of no value if it costs £401 per barrel to extract it? It is the cost per barrel that is just as important.

That said we know that they/we can extract Helium from multiple zones - what I would like to see is the total production capacity/ capability from these multiple test zones might be.

Also keen to hear from LB on their designs for BlueStar

Now that was a coincidence! Thanks keepaddingmore. So that conversion does not look very favourable....?

Blubay, in your previous post you referenced "9,000 litres a day"... educate me please; how does 7.6% of 786 bpd compare to the previous 500,000 sq m of gas a day at 4.7%? Is this just a way of obfuscating the figures? Yes deeper hence liquid but what is the correlation?

"Has there ever been a placing where it doesn’t reach the placing price or lower?"

Many times and at least two with He1 itself!!

Only through a JV or Farm-out, which are actually only different forms of "dilution" - you give away a %age of future revenues or %age of the underlying asset. So if you are a longer term investor this is a far better options (assuming of course they can monetise this asset quickly and cost effectively - which is as yet not a "given"). In truth deep I would like to know a whole lot more about the asset that we have bought and its prospects. timelines etc.

The other principle benefit is diversification of risk across two geographies that are as different as chalk and cheese. Availability, access, costs, and reliability of downstream services and infrastructure is extraordinarily more complex in Tanzania than is the states and "red tape" will ensure that the Rukwa project grinds on far more slowly than I think many realise. Then you can add to that the increased political risks in Tanzania (election next year). Of course that is of no consequence to the short term traders that are invested ONLY for EWT and a get rich quick scheme but then I suggest that LB and the BoD have absolutely NO responsibility to them but have to do what is right for the long term shareholders and the Company itself.

Because deep100, having income will give them access to debt funding and thereby avoid even greater dilution at some future date, that's why.

Toffers for what it is worth I see this acquisition as a step on the way to that debt funding. It would always have been dificult to access debt funding without any means of covering interest and that, of course, means Income. If by raising £6m it gives them access to short term income that enables us to get debt funding and consequently enables the development of Rukwa without dilution I think £6m is a very small price to pay.

Furthermore whilst the dilution was unfortunate we have seen volumes here over recent days of several hundred million shares - even if these 590m shares are forward sold over coming days they should be soaked up pretty quickly. So I do NOT see a fall back to the placing price.

Not sure what to make of the EWT announcement - we are used to getting reports of volumes of 500 scuffs per day not 789 BPD? The concentrations have increased but we do not have a meaningful comparator for the volumes and still nothing on flow rates. All and sundry carrying here about concentrations when it is flow rates that are the most critical factor for commerciality.

I am very glad that I de-risked and now have cash on the side to buy back my top sliced shares - in fact, have already done so! 😁

Maybe ihavenoclue you now understand "disappointing and disconcerting" at not closing above 2.0p on Wednesday? But, of course, the stock market is not for me...

I certainly did not see this falling to 1.70p Bid but I am not at all surprised after failing to close above that 2.0p level three times now. Momentum has declined hugely since Wednesday - we needed it to close above 2.0p on Wednesday to maintain that momentum. Where is a return to that momentum coming from? Maybe having fallen to these levels there will be a surge on buying on Tuesday, or the next RNS will stimulate that surge...? Whichever and whatever it is I hope we see it asap otherwise the sp could easily slip further.

Yes Riflemans, there are an awful lot of gung-ho rampers looking bloody stupid now.....