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Just suppose they come back for more money at some point (and they haven't yet had a discovery when they ask) what do people suppose their arguments for the money would be?
More seismic where they are? Plan a drill for mid 2024? Move to pastures new (Balangida, and Eyasi ) and seismic or drill in the next dry period?
Or a longer timescale than 5 or 6 months from now.
I'm just trying to pick the brains of more researched people I guess..
If this all turns out well in the end at Tai 3 and / or Itumbula some people will have made a lot more money from the inconclusive *initial* Tai 3 results and the low SP we have now (conceivably temporary low sp).
There is still all to play for. HE1 could still discover commercial helium at one or both sites. It's actually no less likely than it was a month ago, or two months ago.
As I understood it, Tai 3 and itumbula are their best shots. I know they have other areas highlighted but others weren't their first choice. I may be wrong because I'm far from as well researched as many but the plan was to make a discovery and then move on to the A2 tier sites from the A1 / Rukwa.
If HE1 wish to have a raise they'd have to make a very good case for it and if their best shots don't come up with the goods, just saying "we'd like to drill till we find HE" won't really cut it.
If they needed just a bit more funding to cover added costs of the delays that would be completely understandable, but it looks like they have enough cash to finish the current jobs anyway.
So what would be the argument for giving more money to HE1 should things not work out? Their licensed grounds are huge and Tanz is enormous, but they couldn't just ask for more cash to just keep going and going.
I think they must still be as confident as seismic studies allow to make a discovery in the wells they already have funding for.
Without a discovery at Tai ,or Itumbula, or fresh persuasive arguments for more money for elsewhere, would they even ask?
I agree. With LB it's not as if she's made a mistake, like the letter of intent and DM. I don't know that things would be very different under anyone else and presumably there'd be the cost of letting her go. So I think she's safe.
But of course I do worry about what'll happen if they don't get luckier in Itumbula or when they return to drill deeper. I'd certainly take 3/4 of whatever I have left out of HE1 if these are the best two shots they have of a discovery and yet they don't succeed – which is what you say when you ask 'if both drills were to fail then where would we be? '.
I think that she thinks she'll find with one of the two drills.
'Good chance we're doing nothing until late Q2 2024'
Late May, 2024?!
Did you see the interview? I know they have to be positive but I don't foresee a scenario of her being that far out with her rough timeline today.
'Used (good) Warranty '
I wonder whether HE1 have a Warranty on the rig they bought; maybe there'll be some reimbursement of sorts. Or (false economy in hindsight) it cost less to begin with.
Crusty, with another company I would normally agree too. But with the SP so depressed right now, would they get a raise away as easily as at 6p. Itumbula is one of the best chances of a discovery (least I hope it is or they should drill elsewhere) so why dilute before the outcome is known, only to fund increasing slim chances of success down the line? It would seem like a raise now is just to keep HE1 in business (and salaries of Directors paid) rather than for them to discover helium in less fertile grounds.
You and Trek know much more than me how these things work but I just wonder if a raise would do anything other than prolong the agony if Itumbula also turned out to be a mixed bag.
Last week Joe said that the crew and their families will make more from the shares (and the sp movements) than their wages. That could be quite an incentive to keep drilling going at all costs; maybe accommodate management's desire to keep costs down as much as possible and complete the current plans within the available cash.
Https://www.proactiveinvestors.co.uk/LON:HE1/Helium-One-Global-Ltd
I've got more shares than I had on Friday. Paid too much for some of them this morning (3.9p) but nevertheless, even if there's a raise, I'll be where back where I was, with a drill ahead. Will try to trade a little on the news and on the gaps in the news..
Tim, you actually pay to read tw stuff?! No, surely not.
Just learned my internet is down till 4pm Monday. Virgin are the worst; don’t think of joining them, anyone.
So no doubt RNSs galore at 7am for my portfolio(and only my phone to react with).