A few reposts12 Sep 2024 12:01
Don't have the name for this one but more interesting than most posts I read.
RE: Chatgpt againToday 07:53
I think there is a mix up on the translations of the unit size of Mcf for some people's estimates where for some they have translated it to mean millions instead of the thousands, even the AI quotes are getting it wrong. Each tier goes up in mutiples of 1000.
Scf = 1 Standard cubic foot
Mcf = 1000 - Scf
Mmcf = 1000,000 - Scf
Bcf = 1000,000,000 - Scf
So our 6176 Scf/d equates to 6.176 Mcf/d
The average helium price at present is around $390 per Mfc, but this can vary depending on the grade of helium which ours seems to be a very high grade needing much less processing. The price can also change considerably when contracts are involved and even rise to around $1200 per Mfc if sold to the likes of space companies.
So, if these prices are anything to go by then per the 6.176 Mfc/day we generate per well would equate to an average of 6.176 x $390 = $2408.64 per day per well. Now times that by 30 wells equates to $72,259.2 per day for the whole production, which if we are producing at 365 days per year, then this would equate to $26,374,608 per annum.
Now those basic calculations are from a standard price today, given prices are continuing to rise, then by the time we start production it could have gone up considerably. In addition to this, we do not know the contract price HE1 maybe selling at to the end user which could be mutiples of the current standard price. So take the $26.3 million per annum above as a minimum, because if we end up selling our helium contractually to say a space company like NASA or Space X, then we may get more than 3x the price inflating revenues to somewhere north of $80 million.
Ofcourse these revenues don't take into account the costs of production, taxes etc. But as Lorna stated in the interview, we have our own drilling rig which will reduce production costs of these wells significantly, in addition to the fact that production wells are much less costly than exploration wells. So, based on her own words, then I don't think the cost of drilling these wells is as much as some people say, and instead it would be little cost compared to the revenues generated.
I think there is alot of cherry picking going on with regards to information on both sides with assumptions being made on partial facts than the full picture causing misinformation or misinterpretation of the facts surrounding this helium play as a whole.
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