RE: Holding happily but don’t know how far this will go.10 Mar 2026 07:04
Cyberbub - imho this initial 4 well production is likely to generate bigger profits than that. $4m / well pa pre-tax profit @ $500 mcf/d was an indicator. I think now likely to be better than $500 because of short term supply constraints, the longer term security HEX can offer and competition for supply within the US. Add there are likely to be tax advantages in the 1st 12-18 mths of production - see * below. I think possible HEX could see £3.5-4m pa post-tax profit per well for these 1st 4 wells for 12-18 mths at least. Charles Archer suggested p/e of 6, which gives sp for 1st 4 wells of around 45-50p. And as you say, that's with nothing else thrown in i.e. no more wells (though not unreasonable to think we could perhaps more than double from 1st 4 during 2026), nothing for potential at Ingomar, H3, hydrogen. And no recognition of potential resource increase. Lots of ifs and buts I know, but my view is HEX is in the right place at the right time and has hit an absolute sweet spot! All IMHO! GLA
*From a search which included AI:
Montana Tax Rates & Incentives
Specific tax rates for helium are often categorised under natural gas and oil production taxes in Montana.
Production Tax Rate: In Montana, the "Natural Gas and Oil Production Tax" generally applies. For new production, there is typically a reduced tax rate for the first 12 to 18 months to encourage development. For "stripper" or new wells, these rates can be as low as 0.5% to 3% (plus a 0.04% privilege and license tax), compared to higher standard rates for older production.
Incentives:
New Well Holiday: Montana often provides a tax holiday or significantly reduced rates for the initial months of production from a new well to help operators recover capital costs.
Investment Credits: The state offers various Energy Related Tax Incentives that can include property tax exemptions for certain new industrial facilities or equipment used in energy production.
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