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Well thats interesting ...
Oak Securities Broker Note cont'd - 16 April 2024
>> Q3’24 Low Cost and Risk Multi-Target Exploration Well
Yesterday’s news announcing the appointment of Petroleum
Consultants LLC puts the Company on track to spud a low-cost
exploration well (~$2.5mm) in Q3’24. The well is targeting a
multi-stacked play concept with four separate prospective
horizons.
Helium has been proven regionally and in the vicinity of the
Asset, meaning that the Geological Chance of Success
(“COSG”) is higher than would otherwise be expected; the
Amsden formation alone is estimated to have a COSG of 42%.
>> Strong Management
The Management has extensive experience in the helium sector,
which, more importantly, crosses the technical and commercial
divide. We consider the team at Helix to be a feature that
differentiates it from its peers.
>> Positive Operating and Sales Environment
Montana is a mature oil and gas basin, making helium
exploration and development easier and lower cost than
would otherwise be expected.
Helium’s scarcity and the US’ position as a global swing producer
means that there is a perpetual excess of demand, generating
upward pressure on pricing.
While the helium market is opaque recent observations from the
USGS place helium conservatively at $420/mcf, but Open
Market and surge pricing continues to push prices towards
$1,000/mcf. Analysis shows that the helium price is the key
determinant of helium production economics.
>> Financing Sufficient for Three Wells and New Projects
The relative low cost of exploration wells, coupled with its recent
funding means that the Company is funded for potentially up
to three wells, which provides for either a follow up appraisal
programme, or accessing further projects.
Oak Securities Note - 16 April 2024
Helix Exploration plc’s (“Helix’s” or the “Company’s”) helium prospect, Ingomar Dome (the “Asset”), is a low-cost entry 9.6 point for investors to gain exposure to a potentially high-impact exploration well. The unrisked valuation (131p) is 12.0x the current price, and the risked value (39p) is 3.6x, which means that the risk-reward balance favours investors.
Valuation
The high helium price and readily available infrastructure lowers the threshold for commerciality, making even small volumes commercial, which reads straight through to value. The Company’s risked valuation is $60mm (£48mm – 39p), while the unrisked valuation is $202mm (£160mm – 131p).
From his book which was printed in 2015 ... Helium The Disappearing Element
This book is about the most common isotope of helium, Helium-4 (4
He). When you hear anything about helium, they are more than likely talking about this common isotope which has two protons and two neutrons in its nucleus and orbited by two electrons. Every balloon you see, for instance, contains Helium-4. The same goes for any other helium used in its abundant array of commercial and scientific uses. Helium does, however, have a lighter and stable isotope called Helium-3 (3He). Although any detailed explanation about Helium-3 is beyond the scope of this book, it is important to note that it is also a very valuable and exceedingly rare commodity that is very important for use in neutron detectors, for example, which are able to detect radioactive materials crossing country borders. In addition, if you Google “Helium-3”, you will find an abundance of information about mining the moon for Helium-3 for use as a clean nuclear fuel. Whether Helium-3 lunar mining becomes a reality or not is also beyond the scope of this book so it will not be discussed.
The chances are that if you bought this book, you are aware that there is a helium (Helium-4 which I will simply call “helium” from now on) shortage. Hold on, if helium is the second most abundant element in the Universe, how could there be a shortage of it? That’s a great question and one that I am frequently asked. Although the explanation will be discussed in greater detail in subsequent chapters, the short answer is that the Earthly inventory of helium has a different origin than the cosmic inventory. All of the helium found in the Universe was created in the Big Bang, or the birth of our universe, whereas the helium we use here on Earth is a product of the radioactive decay of the two heaviest natural elements, uranium and thorium. Indeed if Earth had no supply of these heavy radioactive elements, we would have no helium to harvest. In fact, if there were no uranium and thorium, life on Earth would be very different than it is today, if life existed at all.
As I go back to my balloon example, every helium atom in that balloon was a product of the radioactive decay of the elements mentioned above. This radioactive decay occurs in both the Earth’s crust and mantle and in rare cases, helium can migrate up through the crust and collect to form commercial deposits. This process will be discussed in great detail in Chap. 4. Interestingly, if I were to look at any balloon at any party in any state in the United States, all of that helium was produced in the United States. You see, the United States has been the primary source of helium worldwide since the industry began after World War I. As I am writing this, however, the paradigm is shifting and the United States will soon be a net importer of helium unless new reserves are discovered.
Wheeler M. “Bo” Sears, Jr.
Better link ... https://t.co/EwDgkz3EOz
Https://x.com/imueslibrown/status/1768556724191940759?s=46&t=ExV0yfdStZmQrTf40M8xVw
Cmon CLON give us a tweet/post 🙌🏼
Stalking horse bid …
https://www.investopedia.com/terms/s/stalkinghorsebid.asp
Https://www.investi.com.au/api/announcements/nhe/15a0bcfe-43a.pdf
US miners again down so the inevitable on DAGB for now.
Many of the US miners were down overnight and it started just as the US opened at 2.30pm yesterday despite BTC going on a run . Miners tend to lag BTC highs historically. Frustrating…
Maybe someone can drop Chris an email and ask for his thoughts on latest developments here:
https://www.earth.ox.ac.uk/people/chris-ballentine/
chris.ballentine@earth.ox.ac.uk
Donald Leggatt, the interviewer is Head of Media relations at London South East and Director of FocusIR according to his LinkedIn profile. Ultimately good PR from the company.
Whoosh …
From Hotcopper Noble Helium BB … essentially we had a better drill target.
He1 is 4.7% but from the deeper Karoo formation, which touches the basement/source rocks. They also stated that the deeper they went the recorded data showed increase in He levels. We havent gone deep into the Karoo yet.
*Desnoes
Heineken are the parent owners of Dennoes…
TheKnob44 offers nothing on any BB - look at its history, not one positive comment in ANY post. Odd creature.
Good read on Noble’s wells and what they plan to do next on flow rates and declaring discoveries…
Mbelele wells update:
https://www.investi.com.au/api/announcements/nhe/d66ce27a-168.pdf
Free gas column encountered update:
https://www.investi.com.au/api/announcements/nhe/adc30bea-f91.pdf