Member Info for HereforHemo

Richar I for one haven't got cold feet and the reason for that is I research everything!

So let me explain to everyone what happened to BlueStar. Firstly, they were trying to run two projects in parallel, Voyager and Galactica-Pegasus. Voyager was their flagship and was supposed to generate the initial revenue to fund the Galactica-Pegasus development wells. However, both their initial wells came up with very low pressure and anomalous flow rates. For those who don't know the word it means 'deviating from what is standard, normal or expected'.

Whilst this was going on they were also progressing the Galactica-Pegasus project, and with the success they were having in effect abandoned the Voyager project. BUT, as they hadn't generated any revenue they were left with a problem. They were left with only £600,000 cash as of June 24 after already spending $1.5m on Galactica-Pegasus as well as millions on Voyager. They had no money to drill their development wells.

Being opportunistic HE1 stepped in. For rescuing them by paying their $1.5m initial project spend and committing to fund their first 6 development wells, HE1 got:

A 50% share of the 36 development wells.

A 50% share of all BlueStar leases associated with 61 000 acres with the option to fully aquire them should they wish to.

BlueStar put themselves over a barrel and HE1 took advantage. BlueStar then had the ability to raise a bit of money and with HE1 paying past costs and initial drilling they are now solvent until revenues start, and HE1 have done a fantastic piece of business for us holders. The first six wells will fund the next nine and the next nine will fund the other twenty one, and exploration of the other leases.

You see, research really does allow you to keep calm when others are losing their heads.

HD The short answer is BlueStar had completely run out of cash. HE1 capitalised by moving quickly with a superb piece of business, but if you think BlueStar are lying about the Galactica-Pegasus project, and HE1 are lying about Rukwa being a discovery, rather thsn moaning on here all day, simply don't invest in them.

Found this from last year.

It's worth noting that the HE1 revenue projection for the Galactica-Pegasus project of $2m pa helium and $1m pa CO2 only relates to the first 6 development wells to be drilled this year.

BUT there are expected to be 36 development wells in total, and with 30 development wells expected for Rukwa Helium One can expect to be accumulating some serious revenue.

With 2 other promising licenses to explore in Tanzania, plus options for multiple helium rich leases on the states, there's absolutely no doubt in my mind they are going to become a MAJOR player in the helium market.

https://www.proactiveinvestors.co.uk/companies/news/1017297/blue-star-helium-lands-approval-of-ogdp-for-three-proposed-galactica-pegasus-development-wells-1017297.html

'far more' to it.

Bonzo a Feasibility Study in any mining environment will always be accompanied by an RNS. There will be far to it than key headlines, it'll be a very detailed document. My guess is it'll be out Friday.

Northfork, glad you're still around my friend. Ignore everyone, focus on the fundamentals and your own investment and your investment alone.

This will rerate to proper value, and soon.

OBD GNET NCYT GDR..the list of dogs goes on for poor Slacker. Anyone that posts 'I'm not very good at this investing lark' is probably best ignored.

Fly so if a 1 or 2 million Bcf was announced that equates to over a billion dollars in revenue, you think the SP would tank? Very strange view.

Blubay the Feasibility Study will definitely be released within the next 4 trading days, upon which I expect all my green boxes to mysteriously disappear.

Until we receive resource estimates we can only guess as to numbers, although being fairly certain of commercially and it's highly encouraging LB is stating that it's big enough to be globally significant.

On project finance I think they'll look at two options.

1. OFFTAKE AGREEMENT

Where the offtaker will fund the plant, infrastructure and drilling (appraisal, development and exploration) and be responsible for logistics allowing HE1 to sell at source, in return for 20% of revenues and they'll get their return on investment through discounted helium.

2. Financing through debt.

HE1 taking on debt, most likely imo through the Overseas Private Investment Corporation (OPIC), who mobilise Private Capital thus advancing US foreign policy and national security objectives. An example would be Renergen where they provided a debt funding facility of up $40m including a $5m contingency to be paid at 4% interest over 12 years. It's of interest for the Feasibility Study that they commented to it, subject to approvals in February and formally signed it the following September.

What's also of interest is if HE1 do indeed go it alone. Whilst they'll probably do it with a single contracted customer, my view is it'll be Linde, how the ROI will stack up. I think there's a misunderstanding on Helium prices. Whilst there are spot prices ranging from $390-700 Msf, these are different from contract prices that range from $800-1600 Msf, and this is the range HE1 will undoubtedly be in, so I expect around $80-100m per annum of revenue on average for 10 years, so around $1bn in total for Rukwa.

So some individuals have said they need $100m to progress with drilling, infrastructure and plant. This is absolute nonsense. I estimate with their own rig, around £6m will be required for drilling and then we have the plant costs. Anyone remember in the webinar where HE1 said they would take a modular approach and were surprised how cheap it could be? Well Renergens first plant module capex was only $3.7m and that can process 350kg per day. Helium is priced around $70 per kg, so you could generate nearly $9m per annum just from that while you expand.

In summary I think whatever route HE1 take, it's probable that after debt or offtake, Tanzania's 16% earn in 30% tax on profits after 2 years capital depreciation HE1 will still be looking at banking an average of $1-1.4m revenue per week. Then you have the fully funded Galactica-Pegasus project putting $250k per week on top.

I'm ignoring all the noise. I'm bullish and confident and will sit back and let it all play out.

Keep coolToday 09:05

Facts are always comforting to have against a barrage of disingenuous posts.

1. Helium One's financial runway lasts until June 2025.

2. The Galactica-Pegasus project in the United States is fully funded and will be revenue generating H125, generating $3m pa to HE1 (including the CO2).

3. Rukwa in Tanzania has been classified as a discovery and all the boxes have been ticked to make it commercially viable.

4. The Feasibility Study will be released either on Friday or next Monday to comply with the Mining Licence application deadline of the 17th September.

5. From the artificial lift flow rates I estimate they'll generate revenues of between $80-100m per annum on average for the 10 years of the license.

6. That's a minimum of $1.5m per month.

7. With their own rig, drilling 29 additional wells will cost around $6m in total.

8. With a modular design a production plant will cost $3.7m for a module capable if processing 350kg per say, that's approximately $9m worth of helium per annum.

9. All costs for drilling and production will either be included in a debt or offtake agreement.

In summary, keep control your emotions and you'll find this becomes one of the best investments you ever made.

Facts are always comforting to have against a barrage of disingenuous posts.

1. Helium One's financial runway lasts until June 2025.

2. The Galactica-Pegasus project in the United States is fully funded and will be revenue generating H125, generating $3m pa to HE1 (including the CO2).

3. Rukwa in Tanzania has been classified as a discovery and all the boxes have been ticked to make it commercially viable.

4. The Feasibility Study will be released either on Friday or next Monday to comply with the Mining Licence application deadline of the 17th September.

5. From the artificial lift flow rates I estimate they'll generate revenues of between $80-100m per annum on average for the 10 years of the license.

6. That's a minimum of $1.5m per month.

7. With their own rig, drilling 29 additional wells will cost around $6m in total.

8. With a modular design a production plant will cost $3.7m for a module capable if processing 350kg per say, that's approximately $9m worth of helium per annum.

8. All costs for drilling and production will either be included in a debt or offtake agreement.

In summary, keep control your emotions and you'll find this becomes one of the best investments you ever made.

Whilst the agreement Toffers sent through does relate to gold its also more applicable to mines already in production.

But even if if were applicable it would be broadly the same as I outlined, and that's because it's based on a discounted cash flow (ie it doesn't come into force until all initial outlay is recovered) and most importantly has a 50% cap for the government, so a 30% tax rate, plus a 16% free carry, plus royalty payments is much the same, around 50% and I'd factored those into my figures.

Anyway, the quiet period is over, the lunatics will return with a vengeance, so I'll take my leave again and will return next weekend.

Should be a very interesting week, especially if there's no placing shares left to dispose of. GLA

Toffers with all due respect if you believe the Tanzanian Government will take 50%, plus another 30% in tax, so 80% before any processing costs incurred by HE1, let's hope they don't sign sn offtake agreement because that'll be another 20%, so you reckon HE1 will be running at a loss before presumably the Government then ask for their 16% earn in?

Must admit I don't agree that this is a substantial loss making exercise as you do, but if it puts you in a better frame of mind, I'm pleased for you.

Wimbledon i think arranging the finance was the reason HE1 were at the Tanzanian Investment Centre recently

Their relationships with all levels of government, the Mining authorities and locals is second to nine

Approvals will be speedy. ://www.instagram.com/p/C-2ITA6tlEf/?utm_source=ig_web_button_share_sheet

Crowfoot what he actually said was that they have in the past been held hostage to discounted rates by lenders but that would change upon submitting the EWT.

After that time they said finance would be raised either through debt being project based, offtake or JV partner, or a combination of the three.

I firmly believe there will never be another placement and that the Feasibility Study will confirm that with the numbers they release.

Should read 'approached Noble'

Blubay my understanding is that it's 30% tax on profits, although if you become exempt from taxation they reserve the right to increase the free carry from 16% to 50%.

Whilst I agree with you that the helium HE1 produces will end up in the far east, it didn't stop the Americans providing funding to Renergen in South Africa and with the political battles going on between China and America regarding funding projects (the Chinese invested $20bn in Africa, Biden has responded with a $5bn pledge), I do think the Americans will provide the funding mechanism for HE1 on this project. As an aside, interesting despite the logistical challenges SpaceX have approved Noble, which means they would have approached HE1 as well. Imo anyway.

https://www.lexology.com/library/detail.aspx?g=f9601abc-dec4-44c4-8ff7-bbd7ed234419

Bonzo with the Feasibility Study coming out I'd see the SP between 3-5p as I believe the Mcap should be around 500M.

With each successful drill in the states and the Mining Licence approval to come anywhere between 3 weeks and 3 months from the 17th September, I would that would rise going into 2025, with revenue commencing H125, Tanzania going into production H225, as well as two other licenses in Tanzania to explore as well as a multitude of licenses they can purchase from BlueStar, they could well become a billion dollar company and a share price back in double figures.

Until we receive resource estimates we can only guess as to numbers, although being fairly certain of commercially and it's highly encouraging LB is stating that it's big enough to be globally significant.

On project finance I think they'll look at two options.

1. OFFTAKE AGREEMENT

Where the offtaker will fund the plant, infrastructure and drilling (appraisal, development and exploration) and be responsible for logistics allowing HE1 to sell at source, in return for 20% of revenues and they'll get their return on investment through discounted helium.

2. HE1 taking on debt, most likely imo through the Overseas Private Investment Corporation (OPIC), who mobilise Private Capital thus advancing US foreign policy and national security objectives. An example would be Renergen where they provided a debt funding facility of up $40m including a $5m contingency to be paid at 4% interest over 12 years. It's of interest for the Feasibility Study that they commented to it, subject to approvals in February and formally signed it the following September.

What's also of interest is if HE1 do indeed go it alone. Whilst they'll probably do it with a single contracted customer, my view is it'll be Linde, how the ROI will stack up. I think there's a misunderstanding on Helium prices. Whilst there are spot prices ranging from $390-700 Msf, these are different from contract prices that range from $800-1600 Msf, and this is the range HE1 will undoubtedly be in, so I expect around $80-100m per annum of revenue on average for 10 years, so around $1bn in total for Rukwa.

So some individuals have said they need $100m to progress with drilling, infrastructure and plant. This is absolute nonsense. I estimate with their own rig, around £6m will be required for drilling and then we have the plant costs. Anyone remember in the webinar where HE1 said they would take a modular approach and were surprised how cheap it could be? Well Renergens first plant module capex was only $3.7m and that can process 350kg per day. Helium is priced around $70 per kg, so you could generate nearly $9m per annum just from that while you expand.

In summary I think whatever route HE1 take, it's probable that after debt or offtake, Tanzania's 16% earn in 30% tax on profits after 2 years capital depreciation HE1 will still be looking at banking an average of $1-1.4m profit per week. Then you have the fully funded Galactica-Pegasus project putting $250k per week on top.

I'm ignoring all the noise. I'm bullish and confident and will sit back and let it all play out.