Update on IDA'S saga with the Tanzania govt..
A final decision in a few weeks where the Tanzanian Govt may need to pay ASX listed IDA money that's multiples of its current IDA marketcap.. High risk high reward I guess all depending on the final decision forcing the Tanzania to pay up and then they actually meet their obligations and pay up..
https://www.asx.com.au/markets/company/IDA
The holders of the new 2.4b shares have until about Feb/Mar till the results of the early Jan drill assuming no delays for the wet seasons..
Low marketcap now so traders could be buying up too to try to pump it soon. Not sure it can be shorted much as basically at cash backing now but those funds will erode through drilling so who knows..
If it can't easily be shorted any buy under 0.25p might be ok but they'll then be 2.4b shares also who want to sell over 0.25p if they can't short it.. Or try to pump it as much as they can to free carry into results..
Sorry meant the HE1 marketcap at 0.25p could be less than cash backing depending on what funds they had on hand before the raise and owing from VAT refundsetc.
HE1 £2M enterprise value?
NHE for comparison about £11m enterprise value?
Assumes zero cash holdings for both before their raises. So actual enterprise values (EV) for both would be less.
If HE1 actually already had more than £2m left of funds plus maybe millions in VAT awaiting being refunded by the Tanzanian govt than NHE could have a negative EV and be worth less than cash backing at 0.25p ?
LW I mentioned yesterday funding could be contingent on HE1 showing the funders the drill is fixed and in tip top shape for a drilling campaign
NHE announcement
Lab results unlikely before Christmas
8 days ago pictures on twitter and saying this
"Cement work now complete on the Itumbula well pad with the Camp set up also……the #HE1 rig move to a new site also underway."
So you'd think they'd have sorted funding by now in a normal situation of hiring a rig..
But given no funding yet it might be contingent on providing proof the rig was back in sound working order?.And any dispute with Baker Hughes if there is one isn't an issue either maybe.
The saturated zones sounded as they'd not be surprised if they hit saturated zones with helium at Itumbula
What wasn't so convincing was a proven method to extract the helium from a saturated zone?
Then it was mentioned they still hope for conventional free gas type zones at Itumbula? However personally I felt more chance they'll hit saturated zone and a free gas zone less likely or not that large but time will tell. Maybe they'll prove up a decent sized free gas zone that's the gamble here
Joe 20m + for this hole? Tell me more like this video lol
28p to 1.5p so it's cheap now but agree its seems costly to drill thus far
https://youtu.be/-1-YLE5acoY?si=jBxDMC6HK5rfNTKN
Yeah Dai m is like Roman numerals where m is thousand and mm is a million
So 0.2bcf = 200mmcf (million cf) = 200,000mcf
So at US450/mcf x 200,000mcf = US90m I think
Could be over $10 or $15m to did one hole at Tai-C..
https://youtu.be/-1-YLE5acoY?si=sdR3A-2rWNZ4S9Dv
Listen closely at 2:30 of this video. NHE working with Oxford Uni always expected through modelling there would likely be helium in water..
HE1 would of known also from talking to Oxford the likelihood of helium in water..
However neither HE1 or NHE were that clear on the likelihood of helium in water but seems to be looking for free gas? Maybe they hoped it strike it lucky with free gas and have helium in water as the backup??
Investors I'd say easier to find for free gas traditional conventional type project.. Hence why maybe neither have mentioned much if anything earlier on the potential of helium in water and chances to extract it commercially..
Theoretical Uni of Qld and Oxford inputs to determine a method of extraction if possible citing coal seam as example etc.. for the helium in water
https://youtu.be/SIrioxQRfPw?feature=shared
Prospective Resource was 138bcf before drilling.
What would it be now having only hit a saturated zone of helium and no free gas?
Was the 138bcf based on free gas only?
Maybe a smaller Prospective Resource now of "free gas" for a conventional gas play?
And they might have an unconventional gas play with the saturated zones but needs to be shown helium could be extracted from such saturated zones?
Video talks of theoretical technology they could develop to extract helium from water.. Uni of Queensland.. Oxford Uni.. All theoretical the markets I think prefer free gas and easily extractable using normal methods..
HE1 might join this bandwagon of developing a process if successful that can extract helium from water? Could take awhile though?
Https://youtu.be/SIrioxQRfPw?si=wxeCXG53WloPoOjX
New nhe video haven't watched it yet
The NHE announcement had bullish tones talking of commercialization etc.. and the next Investors sent to their email list with the title "A Globally Significant Helium Discovery? Bigger than anyone expected… " with their spin on it.. So all that plus day traders who gloss over it assuming it was positive saw it push well up during the early part of the day before giving almost all gains by the end of the day as some sold out unsure of the exsolved gas meaning and impact on resource size and if it would flow or be extractable..
The helium is in "exsolved gas" ?
163m reservoir mentioned but also 10 to 15m gas column at "free-air" 2 to 3% helium.. Is it only as low as 10m with helium at 2%/ or over 163m?
https://www.asx.com.au/markets/company/NHE
Couple of helium companies including NHE presenting on this webinar Sunday night UK time
https://www.mstfinancial.com.au/blog/mst-financial-hosts-african-mining-and-energy-forum
Came across this on the NHE hotcopper thread. For NHE the basement was not what NHE were looking for I think but a potential added bonus to what they were looking for at depth before the basement.
Anyway basements appear tricky to get producing going off these comments any thoughts on this?
"Basements are tricky to assess. They have low porosity and very low perm in the matrix and rely on fractures for production. If they did not have total losses when drilling basement, then doubtful there would be much production capable from the basement."