Member Info for CrustyPete

FYI C&P a market update from SP Angel:

Esp note the last line

Helium One (HE1 LN) 0.62p, £58m: Galactica project update

• Helium One, together with 50/50 JV partner Blue Star Helium (BNL AU) , announced that six wells are now tied into the Pinon Canyon facility , which completes stage one of the Galactica development campaign in Colorado . The facility has been operating during daylight hours through a maintenance and optimisation phase , but following the completion of automation, maintenance and system upgrades, the plant is transitioning to continuous 24/7 operations.

• The JV has agreed sales for the initial helium tube trailer at spot pricing, with a second trailer expected on-site shortly , as negotiations continues with multiple parties for long-term helium and CO ₂ supply contracts .

• CO2 liquefaction remains on track for 1H26, with tie-in of the Jackson-27 development well (with high CO2 concentration of 98.3%) timed to coincide with commencement of CO2 sales from the Pinon Canyon Plant . A major milestone for Helium One , which marks the culmination of stage 1 of Blue Star’s Galactica development programme and positions the facility for sustained helium production precisely as global supply conditions have tightened materially.

This initial helium production from Phase 1 is designed to provide early cash flow and operational data, ahead of a Phase 2 development focused on increasing helium production and monetising CO2 through the existing facilities.

The partners commented that the level of interest being shown from potential off-takers and investors underscores the strategic value of both domestically sourced helium and CO 2 from the Galactica Project in Colorado .

The market will likely look for further Helium One updates to de-risk the ramp-up and stability of its operations and cash flows, which will allow long term investors to enter the stock and release higher-risk investors to recycle capital into new developers.

Oh let her continue rambling McNol.

Toffers you are not doing your case any favours, you sound about as sound of mind as The Orange one himself... Sometimes Toffers, "less (actually really) is more".

Frankly gordon it all beggars belief; that our BoD should have been so "hoodwinked", that they did not build "fail safes" into the farm out contract and then that Selan should, even could get away with such deceit and extortion. My scenario outlined below all sounds a bit far fetched but, honestly I would no longer put anything past Selan, Oak Tree Capital or the GOI. All equally corrupt.

Well Gordon if Selan don't soon get on with their drilling obligations they must surely be at risk of losing the license? Indeed might that be their ultimate "tactic"? If the licence "lapses" our 50% disappears out of the window, nothing for to Selan buy out or for us to sell on - only for Selan to then buy the licence back from GOI with a few brown envelopes.

Maybe hugo, maybe, but no guarantee that they will come to anything and even if so, at what price? It'll be a fire sale surely. Selan bottled on paying the previously agreed $14m so I cannot see SYN getting anything close to that.

I sincerely hope I am wrong hugo but, in truth, I have written this off as a lost cause.

Just to repost:

So Selan holding SYN to ransom to force a sale and then using blackmail to chisel them on the price. Disgraceful. Who would want them as an Operating partner?

Cambay sale fails as Selan determines it wants to re-negotiate consideration

• Synergia’s shareholders approved the sale of its Cambay PSC stake at a general meeting in late December, but were subsequently informed by Selan that a major shareholder, Oak Tree Capital, was refusing to sanction completion of the SPA.

• Last month, the Company announced that the Sale and Purchase Agreement (SPA) with Selan for the sale of its remaining 50% interest in Cambay had not completed as the latter had not provided the required bank guarantee in time.

• Selan clarified that taking into account the additional subsurface data acquired from the Cambay field, coupled with geopolitical uncertainty on commodity pricing, it felt a need to reassess the valuation parameters for the transaction. Selan fails to commence carried drilling programme at the Cambay field

• Synergia and Selan originally completed a farm-out agreement in 2024, which enabled the latter to earn a 50% working interest in the Cambay PSC in exchange for a carry of the gross costs of an agreed $20m work programme.

• Selan has yet to drill any of the three new wells targeting the Eocene gas reservoir at Cambay, which was anticipated to lead into a self-funded full field development involving up to 30 wells to exploit 206bcf of P50 proven reserves.

• Selan’s failure to execute on the agreed work programme under the farm-out terms, coming on top of the decision to renege on the deal terms at the last moment, has forced the Company to review its strategic options going forward.

• Synergia is now marketing to other interested parties the Company’s 50% Cambay PSC interest, which it believes holds upside potential in the Eocene gas reserves that should have been targeted as part of the Selan work programme. Delay to the Camelot CCS project work programme

In the UK, Synergia is still looking to identify a replacement JV partner following Harbour Energy's request to withdraw from the 70-100mt Medway Hub CCS project, which the latter acquired as part of the Wintershall Dea merger.

• In order to provide additional runway for the carbon capture and storage (CCS) project, external contract work has been suspended and the Company is working with the regulator to implement a delay in the Camelot licence work programme.

• However, Synergia’s aggressive cost-containment programme coupled to a modest increase in revenue from the Cambay field following workovers and an uptick in oil prices has enabled the Company to fund ongoing operations.

But as I say below gordon who in their right mind would want to get into bed with Selan with their track record? And how long have the BoD been looking for a replacement partner for Medway CCS?

Two blind alleys I fear.....

It hasn't come through on Interactive Investor or HSBC either.

Certainly opportunistic timing Rosey.

I wouldn't argue with you on the general AIM funding principle djwalls but where I am a little peeved is the continued cash requirement for Galactica - a project that was supposedly "self-funding" after the drilling of the 6 initial wells. The ROCE for the original project now looks pretty bloody weak; likely, thankfully, to be salvaged only by the recent spike in HE prices (for as long as it lasts).

I would like the BoD to explain why the Galactica project is now running at a conservative estimate of £5m over budget? Had they put that figure in the modelling from day one, the project would have looked uneconomic.

That is certainly the reason that the Retail Offer is an "add-on" Toffers - after the last funding round the BoD (advised by their Nomad) maybe not expecting it to be supported....

Thankfully, likely to be the last one.

He BoD have never suggested that income from Galactica would be used to support Rukwa, indeed quite the opposite. They suggested that the income form the first 6 wells would fund the subsequent 9 drills. However they are remiss is that this is now the second time that they have had to go to market to raise capital to (on this occasion with other things too) continue the Galactica drill programme; the second time too that we have no explanation of how or why that funding is now required. Delays? Cash overrun? What? Galactica has been in "production" since December but, now three months later, yet to generate any income.....

I do think the "both as a package" is the least likely of the many possible permutations. As you say, let's hope we get some clarity sooner rather than later.

No obsession EE just raising the prospect and looking for people's thoughts. I am very much with you on the private business angle and relative valuations - we only have to look at the current share price. Wouldn't be too unhappy about a listing on Nasdaq though; shareholders might see value there.

Yes, Kashdog that is exactly my point. IF (big if) Scancell receives an offer for the Company as a whole, I would expect Glymab subsidiary to be "outside" of the deal (it would be unlikely perceived to be in Genmab's interest for the development of their products to be overseen by a direct competitor) . My question was, if so, what would likely happen to it and us as shareholders in a then unlisted, private company? Would it be sold off to Genmab? Operated as a private company or. perhaps, seek a listing?

I only ask as the £"default" option of us being shareholders in an unlisted private company is, surely, not a particularly desirable option? Though I guess if we have just received a very attractive and lucrative offer for SCIB and MODI that wouldn't be the end of the world....

Kashdog, I am sure that, if Merck thought Scancell to be a good fit, money would not be an object. Though I cannot see any takeover of Scancell sitting well with Genmab (hence perhaps the separation of Glymab into a separate entity). So what would the potential options be in the hypothetical scenario that Merck or anyone bought Scancell without the Glymab (unlisted) subsidiary? Any thoughts? Separate listing perhaps? "Forced" sale to Genmab?

Thanks Cleaner, somehow that did not come up on my Linkedin feed.

It has been stated previously by the AEX BoD that the rain will impact the pipeline build BUT I suggest that impact is already built in to the projected timelines (the reason the BoD's build estimates went out from 3 - 4 months to 6 + months) so the "rainy season" would have to be pretty exceptional to have a material impact - in my opinion.

And as most (certainly not all) bids are being made by US based companies I would suggest that FDA approval and status would be the most important criteria for consideration for such a buyer - the US being the biggest and most lucrative market; the secondary and tertiary factors may be important but they will certainly come at some point and would a bidder wait for those to be signed off at the risk of being second or third in line and party to a bidding war?