Member Info for HereforHemo

As I've already said, I fully expect the JV and offtake partner to be included in the Feasibility Study over the next 10 trading days.

I think with 20-30 wells, $40-50m pa helium revenue, plus the potential of $22m pa in the states.

And don't forget all their other projects.

We were right. HE1 will become a major Helium player. Congratulations to all!

Although 10 months old, I found the attached of interest for a number of reasons:

1. Even then BlueStar had priced their helium between $450-750 per Mcf.

2. Interestingly they are leasing their production facility and having it operated by a 3rd party, yet total field and plant OPEX is $100-120 per Mcf. Helium is a high margin business.

3. The summary confirms that the Galactica-Pegasus project is targeting 30+ wells in total so with CO2 included there's a potential upside to HE1 of approx $22m pa.

5. Their unexplored leases are within 311,569 gross acres, one of the most significant land positions of any company in the United States. HE1 have the right to aquire any lease currently unexplored, apart from the serenity project.

Finally, and what I found most interesting is they have a non exec director called Gregg Peters. Why is that interesting? Well they say networking is everything in business and Gregg just happens to have worked as Helium Director for Linde in North America before joining BlueStar.

He could be very useful to us!

https://www.linkedin.com/pulse/blue-starbnlasx-installing-its-first-helium-production-stevan-adzic-fgezc

Ardas61 if, as I expect, they are placing shares they got for 1.09, it makes sense to take some profit and derisk their investment.

Personally I'm hoping they release the EWT results on Friday to let any placement shares left to sell churn through.

One thing for sure, the EWT will be out sometime week.

Ignore all the noise, they'll be gone soon enough.

Add the company you mentioned have got to apply for their Mining Licence by the 17th, so by definition the EWT results really have to come out this week, and the Feasibility Study, which forms the basis of the ML application the week after. I'm expecting the results to be outstanding, but that's just me lol.

Your choice whether to wait until results are out, good luck whatever you decide.

Add you are right though I didn't really explain my views fully. The CEO is judged on both imput and output. The input and progress made, I'd agree and say he's done what he can, but on output, that's the share price. Enough said.

Despite what Scott said about being in the best place they've ever been, I know he's lying because he's told others that he's very unhappy we've not progressed as he had hoped.

The reason is simple, the Strategic Review has been a complete waste of time and money. It's clear to me the strategic review had two purposes. The first was to fund and progress Cascabel, but as Scott insists on selling it to a major as a turnkey operation, it's also clear that all permits would have to be signed and that won't happen for about 18 months.

That would be fine if the second strand of the Strategic Review has delivered an outcome. That was to sell off all non core assets and use the capital raised to recommence exploration and development of the core assets left, aside from Cascabel. But, they received no offers for anything. Well I say no offers, as good as. They received offers from very junior companies that had no money, so they submitted equity offers, which were completely unacceptable to SOLG as they didn't fit with the Strategic Review objectives.

So we are now left with the regionals just sitting there, leaking millions of dollars a year for absolutely nothing, and Cascabel being derisked over the next eighteen months.

If we were to appoint an experienced Chairman I think he'd take a quick look around and sack the lot of them, again.

That being said, I'm comfortably in profit, a fully derisked Cascabel will be very valuable at the end if next year, and I think its a very safe investment, albeit long term..more like a pension than an investment.

SM69 useful post thank you for posting. However the figures you quote are incorrect. Firstly that flow rate was on a choke setting, secondly the helium price is virtually double what you quote, and with HE1 drilling down to the basement I believe average concentration levels will be much higher than 5%.

All in all I think using your same calculations I think HE1 would be looking at between $34-55m pa from Rukwa and if they drill the 30+ wells at their Galactica-Pegasus project that has the potential to add another $22m pa.

They ARE on the verge of becoming a very serious player in the helium space. People still talking of placings and funding but i think its virtually certain there will be an immediate JV and offtake with someone like Linde, who have a 40% marketshare for helium, and that they will fund the infrastructure and get payback from a discounted helium offtake agreement. Interestingly they also appear to offer a few million dollars working capital in their JV agreements, and from what I've seen they are all set up as 50/50 ownerships.

Finally, for the large 70 Bcf example I gave yesterday, Linde and the other company have set up another JV, again with 50/50 ownership, in which Linde will build an underground helium storage facility with the helium to be auctioned and both companies sharing the profits. I can see a similar thing being built in Tanzania with the government taking their 16% stake.

Very interesting times ahead.

AJ whilst normal investors ARE sitting back and waiting (and accumulating judging by £900,000 more buys than sells today), sadly these disruptive individuals aren't what you'd call normal.

Most if not all won't be invested. Maybe they are short, maybe they get paid to disrupt, maybe they want to get a cheaper entry price, but one thing is absolutely certain..

You won't hear of them ever again come Friday, and the best thing to do for now is completely ignore them.

£609,000 sold and £1,400,000 bought tells you all you need to know heading into transformational news this week.

There's only two things investors need to focus on:

1 The consolidated EWT results for the Basement and Karoo intervals, where multiple faults and fractures were tested. This will confirm reservoir volumes and commercially and will be released within the next four trading days.

2 The Feasibility Study which will form the basis if the Mining Licence and in my opinion will include a JV and offtake agreement. This will be released a maximum of ten trading days from now.

All the rest is just noise.

Just_us that's a good point.

Basil not wishing to be pedantic but the correct concentration was 7.9%, air corrected.

I've been looking at companies trying to find one with a similar asset profile to HE1 and their Rukwa asset.

The closest I got was one with 70 Bcf of helium unrisked. They estimate, if successful, every well they drill they could produce over 27,000 Mcf of helium.

Interestingly although only a junior they were approached by Linde, to set up a JV and offtake agreement. The deal involves selling 10,000 Mcf per month to Linde at a discounted price until Linde recoup it's initial investment from setting up all the processing infrastructure. Anything above the 10,000 Mcf that the company produces is sold at current market prices, and the offtake only applies to the first 10 wells.

Linde have also arranged another similar deal to fund all infrastructure and will purchase all the helium at the first 10 wells at an agreed price of $500 per Mcf (one thousand cubic feet) to assist the company in its funding of the asset and the company has entered into a 50/50 JV to ensure the whole asset can be progressed.

That's a company with a $171bn Mcap dealing with Helium minnows.

I expect something similar to be agreed with Helium One with one of the majors, likely to be announced in the Feasibility Study in the next 10/11 trading days.

Just my thoughts.

Lisa I think the next RNS will be the final consolidated EWT for both intervals, therefore I very much doubt it'll be ready by tomorrow, although I could obviously be wrong.

On the 'no risk' comment. Whilst it's positive they have registered 7.9% Helium concenration levels, air corrected, and it's very positive they've registered near continuous helium and hydrogen from surface all the way down to the basement both of which make it look as though this will be a large commercial find, don't be fooled, there's still risk involved to all investors UNTIL Helium One confirms via the EWT that it is indeed a commercial find.

Anyway, as this weekend's postings have proved the lunatics have taken over the asylum, the best thing investors can do is leave them to it, sit back and wait for news.

Good luck to you, and everyone else invested.

It's a shame certain posters just post blatant lies, like whoknowswhy, I suspect just out of ignorance. Anyway, just this once I'll put the record straight.

Firstly there will be revenues accrued in 2025, that's one if the primary reasons for the transaction. The Galactica-Pegasus project will generate $2m pa to HE1 from next summer, $3m pa if you include the CO2.

Secondly, the 9 wells are just for Phase 1. There will be over 30 wells in total which, if they a had the same average reserves would earn HE1 up to $20m approx pa.

Thirdly. HE1 can purchase all Blue Stars unexplored leases (apart from serenity) at the same price Blue Star purchased them for.

Despite what the ill-informed state, it is a brilliant acquisition.

But why let the facts get in the way of a good story.

Jrr1 its complicated but here's how they calculate the helium present at Rukwa.

https://www.lyellcollection.org/doi/full/10.1144/petgeo2021-029

Fred nobody can give you advice as we don't know your personal situation.

However, if it were me and I had £5k invested and more money available I would think the following:

The recent fund raising all came through a single Institutional Investor. There website suggests they are a company who are likely to hold their shares for the long term. That's not to say they won't sell any as they may want to derisk some of their investment, but it's clear from Friday they would/will do it responsibly as to not damage the share price.

On HE1's potential you have the asset in the states that should generate revenues of $3m pa starting next summer. You also have the Tanzanian assets that are expected to generate revenues late next year, so if the Rukwa EWT is positive, to me it seems a great long term hold.

With Rukwa, they have tested two intervals and multiple faults and fractures and reading between the lines it appears they are all full of a pure nitrogen and Helium solution that's been trapped under a heavy sedimentary deposit. I have no idea how big it/they are but with an unrisked estimate of 128 Bcf I assume it's big! How valuable is it, at approx $500m per cubic feet, if proven it is going to be extremely valuable, in the billions of dollars.

So there is the Extended Well Test results next week imo, and then further news with a Feasibility Study probably the week after, as that forms the basis if getting a Mining Licence to start production.

So my thoughts are it's a strong buy and accumulate short term. Medium term I have no particular bias but if the EWT is positive undoubtedly an offtake agreement and probably a joint venture will be announced that will add value, and as for long term, I think again it's a strong buy and accumulate.

But that's just me. Do your own research and decide the best way forward.

From memory on their last interview they predicted $700m revenue from their shallow drills but I'm unsure whether they meant US or Australian. Either way still sizable and as you say it reinforces the Rukwa prospect.

With two intervals, multiple fractures and drilling to depth is be amazed if Helium One don't announce a multi billion dollar find in the very near future.