Member Info for DickieT

Might be teaching my granny to suck eggs but there is strong and repeated evidence that when a gas or oil company’s first well moves from exploration into (successful) production — or when early wells deliver credible commercial flows — the company’s share price often rises significantly. This stems from the radical shift in valuation: from speculative resource potential to real reserves, cash flow, and production capacity. Real-world cases such as Trillion Energy, Tourmaline Oil, First Calgary Petroleums, and Rockhopper Exploration illustrate this pattern. Over time, especially for smaller/junior upstream firms, the transition from “explorer” to “producer” is widely recognised by investors as a major re-rating opportunity.

How novel!

BNL…A company that regularly issues updates to shareholders. HE1 could learn some serious lessons from them.

Here we go again.

More of their mates pocketing 20% whilst our investment plummets and the gravy trainers keep their cushy salaries.

"The Company remains on schedule to deliver first helium in December and first carbon dioxide in

H1 2026. The Galactica plant is planned to be progressively ramped up to full capacity as wells

are progressively tied in during H1 2026. "

Louise82 "They also seem happy to completely decimate the SP"

Of course they are. The lower the price the more shares they sweep up . It is a ridiculous financing mechanism for a company like HE1 but done clearly for selected mates so that they could make a quick buck.

For CLN investors in HE1 with “death spiral” terms, the mechanics are such that a falling share price benefits them. They aim to:

Enter at the lowest possible price

The conversion price is set at a 20% discount to the current market price, so the lower the HE1 share price falls, the more shares they receive per £ of debt converted.

This maximises the upside if they sell immediately, allowing them to lock in short-term profits.

Profit from short-term weakness

By converting and selling into a falling market, they can realise gains consistently while the share price declines.

The lower the price, the larger the number of shares they get, making it easier to achieve their target profit on each tranche.

Position for long-term upside

Some CLN investors also recognise HE1’s long-term potential once revenues start.

By entering at a very depressed price, they can both realise short-term profits and retain some shares cheaply to benefit from potential future re-rating.

In essence: CLN investors in HE1 want the share price as low as possible initially — this allows them to convert debt into the maximum number of shares at a 20% discount, achieve short-term profits, and optionally keep exposure for long-term upside once revenues materialise.

Another day, another deafening silence from the HE1 board, as the share price freefalls. One wonders if their strategy is invisibility or just sheer incompetence.

Who in their right mind would even consider buying a share in a Death Spiral?

Somebody is buying - MMs?

AIM investors really need to learn the golden rule: a 'positive' RNS is just corporate code for ‘brace yourselves, lads — the share price is about to do its best impression of a bungee jump without the rope

Onbeyondzebra

Exactly — this is precisely what I was saying yesterday. Lorna and the BOD are clearly in shock and embarrassed at how badly they’ve been advised on financing, and their response has been to hide under the pillow.

The complete radio silence since the death spiral began is not some innocent oversight or incompetence — it’s intentional. Their salaries are secure for the next 12–18 months, and beyond that, retail investors might as well not exist to them. The only people benefiting are the insiders and those offered the CLN — mates of the BOD, as you note.

Whether this is corruption, incompetence, or a mix of both is hard to say. But the pattern is clear: pre-announcing equity raises that tank the SP, structuring convertible advances in ways that inevitably trigger death spirals, and repeatedly enriching partners at the expense of ordinary investors. The whole thing, as you say, looks like amateurs trying to run a company, or scientists learning by trial and error — either way, the result is disastrous for anyone outside the inner circle.

For those of us watching closely, it’s predictable. They keep repeating the same mistakes, and those who recognise the pattern can profit — but that’s small comfort given the broader damage they’re causing.

The Muppet story has been around since 2022!

Try living in Scotland where we have the Hate Crimes Bill

The HE1 CLN death spiral is inevitably driving shares lower through dilution and constant selling.

On one side of the argument f the underlying asset remains strong, there is still a chance for recovery once the financing is cleared. But recovery depends on one thing above all else: market belief in the company’s future opportunities. That belief only comes from strong, consistent communication — and in HE1’s case, there has been none.

This board’s silence is unacceptable. Investors have been left completely in the dark at the very time when reassurance, clarity, and vision are most needed.

On the other side; without a credible narrative around HE1’s future, the market will not trust, will not wait, and will not value the opportunity. The longer this absence of communication continues, the harder it becomes for the share price to recover, no matter how sound the asset may be.

My theory on the radio silence from Lorna and the HE1 BoD over the continuing share price collapse is that they’re embarrassed. They clearly didn’t understand how the death spiral CLN mechanism would play out, and once again they appear to have been led up the garden path by their so-called finance lead, Graham Jacobs.

Alternatively they did know and quite frankly do not care!!!

Blubay: My anger isn’t at the fact they’ve issued those RNS updates — it’s at the lack of ongoing communication whilst the share price is collapsing around us. Any competent board, seeing this level of market reaction, would be taking steps to reassure investors and calm the market. Instead, there seems to be silence, which gives the impression they don’t care how shareholders are being affected. The disclosures you mention are fine as far as they go, but they don’t address the current erosion of confidence. There must be activity ongoing — tell us what it is.

As anyone who read my previous posts will see, I am beyond angry at what is happening. I fully understand both the upside and the downside of HE1—I remain a long-term holder—but my anger is really directed at the complete lack of transparency and communication from the company.

Yes, HE1 has potentially transformative assets, and there could be significant gains if the projects succeed or funding stabilises the business. But the death spiral CLN process makes the risks very real, with severe dilution and pressure on the share price. My frustration isn’t with the risk itself—it’s that investors are left completely in the dark about what’s going on.

No investor looking for short-term profit should be investing at the moment.

Yet again, HE1 investors are left watching their shares crumble while Lorna and the Board remain conspicuously silent. No updates, no explanations—just another day of plummeting value and unanswered questions. Confidence is evaporating fast; transparency clearly isn’t on their agenda.

The company has issued convertible loan notes (CLNs) that can be converted into shares at a 20% discount to the average current share price. This type of financing is typically only used by companies in financial distress or those struggling to raise cash, because it allows them to secure funding quickly.

The mechanics are straightforward but dangerous for existing shareholders: when the stock price falls, investors can convert their CLNs into more shares for less money, which dilutes existing shareholders. This dilution puts further downward pressure on the share price, making conversions even more attractive — creating a self-reinforcing downward spiral.

Even without any fundamental changes to the business, this mechanism can cause the share price to drop sharply, which is what we are seeing with HE1. This is a classic example of death spiral financing, a method that can provide short-term cash but is highly detrimental to existing shareholders.

What this says about HE1 is clear: the board's decision to pursue such a financing strategy demonstrates a complete disregard for existing shareholders. It's a stark signal that the company's leadership is willing to sacrifice shareholder value to secure immediate funding.

Equally concerning is the radio silence from CEO Lorna Blaisse and the board. Their lack of communication during this critical time is shocking and reflects poorly on their commitment to shareholder interests.

Furthermore, the continued presence of Graham Jacobs as Finance and Commercial Director raises questions about the company's leadership. His ongoing role, despite the current financial strategy, suggests a lack of accountability and poor management decisions.

This situation serves as a warning to anyone considering investing in HE1 at this moment. The current board's actions and the company's financial strategy indicate a highly risky environment for potential investors.

No other CEO or Board would stay silent while the share price collapses. Any competent CEO would be communicating with shareholders, outlining a clear plan of action, and taking visible steps to restore confidence. Yet at HE1, the leadership seems to think silence is acceptable.

The HE1 board have made it crystal clear they don’t care about long-term holders. We were useful once, but now it’s all about lining up fresh money from the gullible while their mates rinse through the remaining £7.5m at a built-in 20% profit. Loyalty gets you nothing here—only dilution

Yes Blubay. That is how CLN's work but my argument is that it was denied to LTHs and only provided to a select few.

I would have been more than happy to lend a few quid where there is a 99.9% chance of making a tidy 20% profit

So the HE1 board’s big masterstroke is basically: “Hey pal, lend us £10m. Don’t worry, you can convert it into shares at a fat 20% discount, forward sell it, and pocket a tidy profit.”

And what about the long-term holders who’ve actually backed this company through thick and thin? Oh right – nah, stuff them.

This isn’t strategy, it’s daylight robbery dressed up as financing. The board have effectively handed speculators a fast-track to profit while throwing loyal shareholders under the bus. Absolutely shameful.