RE: Large buys accumulating once more6 Dec 2024 01:36
Like you I remain optimistic about our chances overall Tiburn, but I would however query your interpretation of the following statements from recent RNSs:
"Despite good porosity readings on wireline, gas from the Flathead does not flow naturally and additional stimulation could be required to generate commercial flow rates, a process which is relatively common and cost-effective in the region”
Unless there’s a realistic chance that Flathead could spontaneously start flowing by itself then ‘additional stimulation could be required to generate commercial flows’ implies to me a second round of more intensive stimulation, for example fracking following an initial acid wash.
“The results are contrasting to the 2.5% helium identified in the underlying Flathead formation, the primary target in the Clink #1 well, implying an excellent seal that is potentially containing the high-grade helium system beneath the Amsden, and that gas in the Amsden has migrated from a different source.”
My reading of this is that HEX believe the seal over Flathead may have prevented helium migrating upwards to Amsden in significant volumes, in which case whatever gas exists in the Charles, though presumably exhibiting slightly higher helium concentrations being lower in the stratigraphic column, would be expected to otherwise resemble the gas in Amsden. In short, commerciality at Clink probably depends on being able to at the very least coax some consistent low pressure flow from Flathead.