Member Info for highland

Was the last acquisition confirmation RNS not release at 2pm?

Here are approximate market caps for some of the top uranium-producing companies as of late 2023. Keep in mind that these figures can fluctuate due to market conditions:

Cameco Corporation (CCJ): ~$20 billion

Kazatomprom: ~$7 billion

Energy Fuels Inc. (UUUU): ~$1 billion

Paladin Energy Ltd. (PDN): ~$1 billion

Denison Mines Corp. (DNN): ~$1 billion

Ur-Energy Inc. (URG): ~$300 million

Global Atomic Corporation (GLO): ~$200 million

NexGen Energy Ltd. (NXE): ~$1 billion

Cameco (Kazakhstan): Market cap not publicly available as it's state-owned, but a significant producer.

Orano: Market cap not publicly available as it's a private entity.

Would updates not be better suited given via an official RNS?

Minority stakes are usually classed as between 20% -30%.

That being the case a 15 million USD investment for say 30% would put TRP at a value of 50 million USD (38 million GBP).

That is 5 times the present valuation......worth the risk for me, should everything be signed off obviously.

“The Company would like to thank the Ministry of Minerals and the Mining Commission for their continued support and their engagement with the recent success in southern Rukwa and looks forward to their positive response and to developing a partnership with the Government of Tanzania upon the granting of the ML, in order to develop a flagship helium sector in Tanzania.”

What is the difference between joint venture and partnership in Tanzania?

A joint venture is a business arrangement where two or more entities collaborate for a specific project or a limited time. In contrast, a partnership is a long-term business relationship where individuals or entities share the responsibilities, profits, and losses of an ongoing business enterprise.

Scrub this....chatgpt seems to be using some obscure number for the mscf value

To calculate the total value before deductions of 6,176 standard cubic feet per day (scf/d) of high-purity helium extracted from 30 wells over 365 days, follow these steps:

Determine the total volume of helium extracted per well:

Volume per day per well: 6,176 scf

Number of days: 365

Total volume per well = 6,176 scf/day × 365 days = 2,254,240 scf per well

Calculate the total volume extracted from all 30 wells:

Total volume from 30 wells = 2,254,240 scf per well × 30 wells = 67,627,200 scf

Estimate the price of high-purity helium:

For high-purity helium, prices can be around $10 to $50 per thousand cubic feet (Mscf). Let's use an average price of $30 per thousand cubic feet (scf) for this calculation.

Calculate the total value before deductions:

Convert the total volume to thousands of cubic feet: 67,627,200 scf ÷ 1,000 = 67,627.2 Mscf (thousand scf)

Multiply by the price per thousand cubic feet: 67,627.2 Mscf × $30/Mscf = $2,028,816

So, the total value before deductions of 6,176 scf/d of high-purity helium extracted from 30 wells over 365 days, at an average price of $30 per thousand cubic feet, would be $2,028,816. Adjust the final amount based on the actual market price of high-purity helium.

In Tanzania, the process for obtaining a mining license for helium gas, or any other mineral resource, generally involves several stages, and the commercial viability of the discovery plays a crucial role. Here’s a general outline of the requirements and process:

Exploration License: Initially, you need to secure an exploration license. This license allows you to explore and assess the potential of the resource. It does not require the discovery to be commercial, but you must demonstrate that you are conducting serious exploration activities.

Discovery and Assessment: During the exploration phase, you will assess the size and quality of the helium deposit. If you find a significant amount of helium, you will need to conduct detailed studies, including economic feasibility studies, to evaluate the commercial potential of the deposit.

Feasibility Study: Before applying for a mining license, you typically need to conduct a feasibility study. This study assesses the economic viability of the project, considering factors like market prices, extraction costs, infrastructure, and investment requirements. The feasibility study will help determine if the helium deposit is commercially viable.

Application for Mining License: Once you have established that the discovery is commercially viable through a feasibility study, you can apply for a mining license. The mining license application process involves:

Submitting detailed reports and feasibility studies.

Demonstrating that you have the technical and financial capability to develop and operate the mining project.

Complying with environmental and social impact assessments.

Meeting regulatory requirements set by the Mining Commission of Tanzania.

Regulatory Approval: The Mining Commission reviews your application, feasibility studies, and other relevant documents. They will assess whether the project is commercially viable, environmentally sustainable, and in compliance with Tanzanian mining regulations.

In summary, while you don’t need to have a fully commercial discovery to apply for an exploration license, you generally need to demonstrate commercial viability through feasibility studies before applying for a mining license. The regulatory framework ensures that only commercially viable projects proceed to the development stage. For the most accurate and specific guidance, it’s advisable to consult with Tanzanian mining authorities or legal experts specializing in Tanzanian mining law.

No...not new.

Just highlighting the difference between a choked flow and and what to expect from a production flow

To estimate the flow rate of helium through a production well without the choke, given the provided choke setting and flow rate data, you need to understand the relationship between the choke setting, the flow rate, and the pressure differential.

Here’s how you can approach it:

Understanding Choke Settings: The choke setting controls the flow rate by restricting the passage of fluid. The choke size (36/64 inches) and flow rate are given for this restricted condition.

Flow Rate through the Choke:

Flow Rate of Fluid: 2,701 barrels per day (bpd) of fluid.

Helium Flow Rate through Choke: 834 standard cubic feet per day (scfd).

Estimating Flow without Choke:

The flow rate through the choke can be approximated using the formula for choke flow, which often involves the flow area and pressure differential. Since the choke restricts the flow, removing the choke would likely increase the flow rate significantly.

To estimate the flow rate without the choke, follow these steps:

Calculate the Choke Flow Efficiency: Chokes are designed to restrict flow, and removing them generally results in a higher flow rate. However, without precise pressure and area data, we need to use the ratio of the given flow rates.

Assumption of Linear Relationship: For a rough estimate, you might assume a linear relationship between the restricted and unrestricted flow rates if no other data is available.

Since the provided flow rate through the choke is 834 scfd, you can use this as a base to estimate the unrestricted flow rate. Typically, removing the choke could increase the flow rate by a factor, but without specific reservoir and pressure information, it’s challenging to determine this precisely.

To make a rough estimate, a common approach is to use the general flow rate increase observed in similar wells, which can be anywhere from 2 to 4 times higher without a choke.

Estimate Unrestricted Flow Rate:

If you assume a conservative factor of 2 to 4 times the flow rate observed with the choke, you get:

Lower Estimate: 834 scfd × 2 = 1,668 scfd

Upper Estimate: 834 scfd × 4 = 3,336 scfd

Therefore, without the choke, you might expect the helium flow rate to be in the range of approximately 1,668 to 3,336 standard cubic feet per day.

For more precise calculations, detailed information about the reservoir pressure, choke size, and flow dynamics would be necessary. It’s also advisable to consult with reservoir engineers or production specialists who can provide a more accurate estimate based on actual field data and flow equations

Any chance we will see an interview from lorna today?

All good for me...we know its there just drill to let it out (funded via a JV or farm in now based on todays news)

A development well is a type of well drilled specifically in a known oil or gas field to extract resources from a proven reservoir. Unlike exploratory wells, which are drilled to discover new reserves, development wells are drilled to maximize production from an already discovered field.

Here are some key points about development wells:

Purpose: The primary purpose of a development well is to efficiently produce hydrocarbons (oil, natural gas, or helium) from a reservoir that has already been confirmed by exploratory drilling.

Location: The placement of development wells is carefully planned based on geological data, reservoir characteristics, and production strategies. They are usually drilled in areas where there is a high likelihood of tapping into the productive parts of the reservoir.

Types:

Vertical Wells: Drilled straight down to access the reservoir.

Horizontal Wells: Drilled at an angle or horizontally to maximize contact with the reservoir, which is particularly useful in thin or unconventional reservoirs.

Infill Wells: Drilled between existing wells to improve recovery and maximize production.

Production Optimization: Development wells are part of a broader field development plan, which includes infrastructure like pipelines, processing facilities, and sometimes enhanced recovery techniques to optimize the extraction of resources.

Economic Consideration: Development wells are typically drilled when there's a high degree of certainty that the well will be productive, reducing the financial risk compared to exploratory wells.

Colin,

Do one mate....I work in oil and gas, it was posted for those who my not be as technically superior as you obviously are...its called being helpful...maybe give it a go some time....

The well was initially choked to 20/64ths and flowed for ~22.5 hours with an average flow rate of ~688 bpd of fluid. The well was then choked back to 22/64ths and then flowed for ~16 hrs with an average flowing rate of ~786 bpd of fluid.

what is the larger pipe size during choking 20/64th of an inch or 22/64th of an inch

ChatGPT said:

ChatGPT

The larger pipe size during choking would be 22/64th of an inch compared to 20/64th of an inch.

Here's why:

20/64th of an inch is equal to 0.3125 inches (approximately 7.94 mm).

22/64th of an inch is equal to 0.34375 inches (approximately 8.73 mm).

Since 22/64th of an inch has a larger diameter than 20/64th of an inch, it allows more fluid to flow through the choke, making it the larger size.

So with the slightly larger pipe bore the volume /flow increased over a shorter period of time (16 hours opposed to 22.5 hours)....maybe simplistic but looks OK to me.

what pipe size is normally used at a helium gas wellhead

ChatGPT said:

ChatGPT

The pipe size used at a helium gas wellhead can vary depending on several factors, such as the expected flow rate, pressure, and the specific design of the wellhead equipment. However, in general, the following guidelines apply:

Typical Pipe Sizes for Helium Gas Wellheads:

Flow Lines (Production Tubing):

2 3/8 inches or 2 7/8 inches OD: These sizes are common for production tubing, which is the pipe that carries the helium gas from the well to the surface. The specific size depends on the expected flow rate and pressure.

WHAT CONCENTRATION, RESOURCE SIZE AND FLOW RATE WOULD MAKE A HELIUM DISCOVERY COMMERCIAL

ChatGPT said:

ChatGPT

For a helium discovery to be considered commercially viable, several factors need to align, including the concentration of helium, the size of the resource, and the flow rate of gas from the well. The thresholds for these factors can vary depending on market conditions, technological advancements, and specific project economics, but here are some general guidelines:

1. Helium Concentration:

Minimum Concentration: A concentration of 0.3% helium in natural gas is generally considered the lower limit for commercial viability, depending on other factors like resource size and market prices.

Optimal Concentration: A concentration of 1% or higher is typically more desirable, as it significantly reduces the costs associated with extracting and purifying helium. Concentrations above 5% are considered exceptional and highly attractive.

2. Resource Size:

Small-Scale Operations: For smaller projects, a resource size of 0.5 to 1 billion cubic feet (BCF) of recoverable helium could be commercial, particularly if the concentration and flow rates are favorable.

Large-Scale Operations: For a major commercial operation, a helium resource size of 3 to 5 BCF or more is typically sought. Larger resources reduce the risks and can ensure long-term production.

3. Flow Rate:

Minimum Flow Rate: A well should ideally produce gas at a rate of at least 1-2 million standard cubic feet per day (MMscf/d) to be considered commercially viable. This rate allows for sufficient production to justify the investment in infrastructure and operations.

Optimal Flow Rate: Flow rates of 10 MMscf/d or higher are highly desirable, as they can support more extensive and profitable operations. High flow rates reduce the time needed to deplete the resource, improving the return on investment.

Additional Considerations:

Market Prices: The market price of helium is a crucial factor. Higher prices make lower concentrations and smaller resources more viable. Conversely, low prices require higher concentrations and larger resources to justify the investment.

Production Costs: Costs associated with drilling, extraction, purification, transportation, and infrastructure development also play a significant role. Lower production costs can make less favorable concentrations or smaller resources commercially viable.

Regulatory and Environmental Factors: Compliance with regulations and minimizing environmental impact can affect the economic feasibility of a helium project. Delays or increased costs due to regulatory hurdles can impact commercial viability.

In summary, a commercially viable helium discovery generally needs a helium concentration of at least 0.3% (with 1% or higher being preferable), a resource size of at least 0.5 BCF (with 3-5 BCF being ideal for larger projects), and a flow rate of at least 1-2 MMscf/d (with higher rates being more attractive). However,

Is itumbula west 1 a commercial helium well

ChatGPT said:

ChatGPT

Searched 6 sites

The Itumbula West-1 (ITW-1) well in Tanzania's Rukwa Rift Basin is indeed considered commercially viable for helium production. The well has shown promising results, particularly during an extended test, where helium concentrations reached as high as 7.6%. This concentration is quite significant by global standards, making it a noteworthy discovery in the helium industry. Over a five-day testing period, the well consistently produced helium at an average concentration of 5%, with a flow rate of 786 barrels per day, which is commercially attractive.

These results are considered a milestone for Helium One Global Ltd, the company behind the project, as they position the Rukwa Basin as a globally unique helium resource. The successful flow of helium at these concentrations suggests that the ITW-1 well could contribute meaningfully to the global helium supply, especially at a time when demand for helium is expected to rise sharply due to its critical applications in various high-tech industries.

In summary, the Itumbula West-1 well is indeed a commercial helium well, reflecting both the potential and significance of the Rukwa Basin in the global helium market​(

Helium One Global

,

Proactiveinvestors NA

).

A result of 7.6% helium in a gas sample can be considered significant, depending on the context of the exploration. Here’s what it could mean:

1. Oil and Gas Exploration

Natural Gas Reservoirs: In natural gas reservoirs, helium is often found as a minor component. A concentration of 7.6% helium is relatively high. Most natural gas fields have helium concentrations below 1%, so this could be considered a promising result.

Helium Extraction: Given the rarity of high concentrations, a 7.6% helium content might make the gas reservoir economically viable for helium extraction, especially considering the global demand and supply constraints of helium.

2. Helium Exploration

If the goal of the exploration is specifically to find helium, 7.6% is a very good result. Helium is typically found in concentrations of less than 0.5% in most reservoirs, so a concentration this high could indicate a valuable resource.

3. Geological Significance

High concentrations of helium can also be a sign of particular geological formations, like certain types of natural gas traps or uranium-rich areas where helium is a byproduct of radioactive decay. This can provide insights into the underlying geology and potential for other resources.

Overall, in most cases, a 7.6% helium concentration would be considered a positive and potentially valuable finding for an explorer.

Anything new in it?....can't access the interview as at work at the moment and you tube is blocked.

....20p looks cheap ;-)

The percentage difference between the market value and the in situ value of a uranium mining company can vary significantly depending on various factors. These include the stage of development, geopolitical risk, market conditions, production costs, and the ability to convert in situ resources into economically viable reserves.

General Guidelines:

Early-Stage Exploration Companies: These companies might have a market value that is only a small fraction of their in situ value, sometimes as low as 1-5%. This is because there is high uncertainty about whether the resource can be economically mined.

Development-Stage Companies: As a company progresses towards development, the market value might rise to around 5-20% of the in situ value. This is because the market starts to factor in the potential for production but also considers the capital expenditure needed for mine development.

Producing Companies: For companies that are already in production, the market value can be 20-50% or more of the in situ value. This reflects the reduced risk and the company’s ability to generate revenue from the resource.

Mature Producers: In some cases, particularly with low-cost producers or in a strong uranium market, the market value could approach or even exceed the in situ value. However, it typically still remains below 100% due to inherent risks in mining operations.

Example Calculation:

In Situ Value: $17 billion

Market Value: $3 billion (as an example for a development-stage company)

Percentage Difference

=

(

In Situ Value

−

Market Value

In Situ Value

)

×

100

Percentage Difference=(

In Situ Value

In Situ Value−Market Value

​

)×100

Percentage Difference

=

(

17

 billion

−

3

 billion

17

 billion

)

×

100

≈

82.35

%

Percentage Difference=(

17 billion

17 billion−3 billion

​

)×100≈82.35%

So in this example, the market value is about 82.35% lower than the in situ value.

Important Notes:

The actual percentage difference can vary widely depending on specific circumstances, such as uranium prices, operational challenges, and regulatory issues.

Market sentiment and speculation can also play a significant role in the market valuation of uranium companies, particularly during periods of high volatility in commodity markets.