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Https://dailynews.co.tz/countdown-to-2024-tanzania-mining-investment-conference-state-envisions-brighter-mining-sector/

I do wonder how Rukwa will look when you consider the Presidents comments.

Of particular interest to me is whether geothermal energy will be used that would drastically reduce energy costs, although set up costs would be higher.

Also with Tanzinia wanting to integrate mining with the agricultural sector, will Helium One vent the nitrogen or would it make more sense to use it with the hydrogen to make fertiliser, and rather than discard the water use it for the regions crops.

All fascinating questions that i very much look forward to getting answers about in the near future.

Helium One could be about to embark on a very important strategic partnership with the government of Tanzani.

//dailynews.co.tz/countdown-to-2024-tanzania-mining-investment-conference-state-envisions-brighter-mining-sector/

By issuing an EOI, Helium One is signaling its intent to advance its production activities in Tanzania for the southern Rukwa Helium Project. This indicates that the company is moving forward with plans to develop infrastructure necessary for its operations, such as well pads, roads, and other essential services. The EOI process allows Helium One to identify and engage with qualified service providers who can support these developments.

The EOI also reflects Helium One’s commitment to local engagement and compliance with Tanzanian regulations. The requirement for interested service providers to submit various documents, including local content approvals and tax clearance certificates, demonstrates the company’s intention to operate within the legal framework of Tanzania while fostering local economic participation.

The range of services sought through the EOI—from medical services to logistics—indicates that Helium One is preparing for a comprehensive operational setup. This readiness is crucial for ensuring that all aspects of their helium extraction processes are adequately supported, which can lead to more efficient operations and potentially higher yields.

The questions investors should be asking imo are why did Helium One issue it now, why was the response timeline so short, why was it issued in advance of ESIA and Mining Licence approval and was the Tanzanian Government and Mining authorities aware of it?

My belief is that the Tanzanian Government and Mining authorities had to be aware and approve the document going out. They also must have informed Helium One the Mining Licence and ESIA certificate will be awarded. Furthermore they must be involved in the project timelines and financing model.

I therefore think that investors will hear very soon on Helium One being successful in their application and that in turn will lead to the release of the Feasibility Study.

Patience will be rewarded imo, and soon, especially with drilling in Colorado happening in parallel.

Just my thoughts.

Keepaddingmore I've always thought this discovery 'of global significance' will generate revenues in the billions of dollars. Personally I have no problem waiting to find out if I'm right. I remain extremely bullish.

I also have no problem with people selling through impatience. Each to their own.

The EOI will lead to a shortlist. These companies will receive the RFP for the Rukwa production facility.

The fact this process is already underway suggests to me the timescales outlined haven't changed.

The request from Tanzanian authorities for Helium One to withhold the release of their feasibility study could stem from several factors related to regulatory, strategic, and economic considerations. Here’s a detailed breakdown of these potential reasons:

1. Regulatory Compliance:

Legal Framework: The Tanzanian government has established regulations that govern the mining and exploration sectors. These regulations may require companies to submit their feasibility studies for review before public disclosure. This ensures that all necessary assessments are conducted in compliance with local laws.

Environmental and Social Impact Assessments (ESIA): Often, feasibility studies must be accompanied by ESIA reports. The authorities might want to ensure that all environmental concerns are addressed before allowing any public dissemination of information.

2. Strategic Economic Interests:

Market Sensitivity: Helium is a strategic resource, and its market dynamics can be sensitive to new information. The government may wish to control the timing of information releases to manage market reactions or investor sentiment effectively.

Negotiation Leverage: By withholding the study, Tanzanian authorities might aim to strengthen their position in negotiations with Helium One regarding terms of operation, or other financial arrangements related to helium extraction.

3. Protection of National Resources:

Resource Management: The Tanzanian government may prioritize national interests in managing its natural resources. By controlling the release of feasibility studies, they can ensure that any development aligns with national strategies for resource management and economic development.

Preventing Speculation: If details about potential helium reserves are released prematurely, it could lead to speculation that might not align with the government’s long-term plans for resource utilization.

4. Stakeholder Engagement:

Consultation with Local Communities: Before releasing potentially impactful information publicly, authorities may want Helium One to engage more thoroughly with local communities affected by helium extraction projects. This engagement can help mitigate conflicts and build support for future operations.

Pub I would think they’ll issue an RNS when drilling starts. It’s been bitterly cold but weather is perfect now so I fully expect to hear Wednesday or Thursday at latest that we’re underway.

Furthermore, it won’t be long before HE1 have their shortlist of vendors for Rukwa, enabling them to submit their RFP. The relevance of that is that project timelines, scale and budgets come into play. But, that would require coordination with the Tanzanian government and Mining Authorities and that in turn can only happen with the Mining License being awarded first.

I think we’re close to becoming a producer with the first two wells ready to drill and three being prepared, alongside State 16 that’s awaiting tie in, and we’re close to knowing the volumes and revenue expectations of Rukwa.

I’m happy to sit and wait patiently and happy to ignore the vast majority of messages posted on here and wait for value to accrue because personally I’m sure it will.

The timeline for Rukwa is more dependent on commissioning the Production Facilities to be built rather than the drilling imo. That's why I think the EOI is significant as it indicates that they very much want to adhere to it being really this year.

All the timeline fot drilling does is determine how many wells will initially be tied in, and additional ones will just be added over time.

But, in order to hit the production timeline of 2025 they'll need to award the licence pretty quickly.

Finally we hit the newsflow investors have been waiting for.

The State 16 well in Colorado is already awaiting tie in to production and the first of our 6 fully funded development wells will be drilled early next week, closely followed by the second later this month.

In parallel the next 3 wells will be getting prepared to drill in February, and whilst they are being drilled we'll be getting the results of the first two wells. With results of the 3 wells drilled in February to come later this quarter we'll have a really good understanding to calculate the revenue expectations for the total of 30 wells expected for the Galactica Pegasus Projects, especially when the offtake agreements are signed for both the helium and the CO2.

We then look forward to production and first revenues in Colorado in Q2 whilst also looking out for the ESIA and Mining Licence approval in Tanzania, and the subsequent Feasibility Study confirming volumes and business plan, the JV with the Tanzanian Government and the debt package, Offtake and/or JV with a major, most likely a combination of all three.

A news rich period that should see a substantial rerate. Time will tell.

Apologies 27% not 37% fat fingers.

Wolverine over the last 6 months HE1 now have $11m in the bank, are fully funded the imminent drilling of the initial 6 development wells in Colorado, are a few months away from generating first revenues, have announced a discovery in Tanzania of Global significance and have even issued an Expression Of Interest document to the market for a full helium production facility which strongly suggests the Mining Licence is on the verge of approval (and maybe verbally they already know it's approved).

All that positive news has led to a 37% fall in the share price so I think you could safely say we're undervalued.

Nobody knows when fair value will return but in my view it definitely will and when it does it'll be rapid.

BuyMeAnother the initial State 16 well spud on 17th May with significant discovery announced 4th June, so results should take around two weeks from drill.

Pub all I would add to your message is:

1 Drilling will commence in Colorado 'early' next week.

4 Moving into production and being revenue generating will greatly assist them in securing debt finance for the southernRukwaHeliumProject, should they choose that route.

Clem I base my expectations on the concentration levels of the State 16 well but once the two wells are drilled this month and the three are drilled next month BlueStar can sign offtake agreements for the Helium and CO2, so we'll be able to calculate an accurate average for the projects based on concentration levels, flow rates and price.

Clem with additional wells planned in the future by BlueStar above and beyond the 30 development wells at Galactica and Pegasus, it's entirely possible around $100m gross revenue might be generated for Helium One over the coming years, so I personally I see it as transformational moving from an exploration company to a producer.

Also I believe that the issuing of an EOI tender for Rukwa would not have been done without the permission of the Tanzanian authorities, and in my view signals two things. One, that the approval will be confirmed soon and two, all parties do not want the predicted production late in 2025 to slip.

Kelly with the first 6 wells estimated to generate $3.5m per annum from Q2 I'd say she's delivered, especially with another 24 to follow in Colorado later this year.

The more Colorado advances before the Mining Licence is awarded in Tanzania the better as far as I'm concerned.

If we took the figures from the State 16 well flowing at 285 Mcfd at a 1.9 concentration and priced it at $400 per Mcf and multiply it by the initial 6 wells going into production we’d get a figure of $4,747,140 per annum. If we then added the CO2 which is estimated at 50% of the helium revenue we’d get a figure of $7,120,710 total revenue for the six wells thus with a 50% stake an annual revenue to Helium One of $3,560,355.

So by taking an average gross figure you’re talking of approximately $9m gross revenue for the Galactica Project alone.

Then there’s the Pegasus Project to roll out which is of equal size.

Then of course the southern Rukwa Helium Project

Around 60 development wells to be drilled in total for Helium One, early multi million dollar revenue from two discoveries, one world class and one of global significance.

I’ll be holding for many months and ignoring the SP until the resources are reflected in the price.

Bluebay I’d agree the first 15 wells at Galactica should generate profit of around $5m per annum from next year. With Pegasus having the first development well funded and around 14 additional wells there’s a lot to look forward to.

When you consider Colorado is not the main focus and we have the potential of another 30 development wells to drill in Tanzania, for a project that I believe will turn out to be ten times the size of Galactica-Pegasus, it’s only a matter of time before the SP rerates.

All of course in my opinion.

The numbers look compelling in Colorado.

If we took a well flowing at say 285 Mcfd at a 1.9 concentration and priced it at $400 per Mcf (all of which I think are conservative figures) and multiply it by the initial 6 wells going into production we’d get a figure of $4,747,140 per annum. If we then added the CO2 which is estimated at 50% of the helium revenue we’d get a figure of $7,120,710 total revenue for the six wells thus with a 50% stake an annual revenue to Helium One of $3,560,355.

That’s just for the first 6 wells based on conservative estimates. Bearing in mind there is expected to be a total of 30 wells for the Galactica-Pegasus projects, if we used the same metrics for all 30 wells Helium One would end up getting a very impressive $17,801,775 PER ANNUM in revenue once the projects are all in the production phase.

Blubay with economies of scale on the development wells I believe six months revenue from the 6 initial wells would fund the additional 9, especially as each well tied in would contribute more to the revenue stream. So a lot would depend on when Helium One get approval for the Mining Licence at Rukwa as we know we're looking at approximately one year from then until production. Then it depends when they start drilling development wells in Tanzania and how many they want online initially, as you would think they'll adopt the same model as Colorado with the first 5 funding the next 9 etc.

It's entirely possible an offtake partner would fund the infrastructure and either the offtake partner or JV put in working capital as well. With the project also lending itself to debt it is perfectly feasible that Helium One will never have to raise through shareholders again. I'm not saying they won't but it's possible .

Whatever way you look at it they are in extremely good shape financially.