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93% not 97%
Hi Dai agree natural or gold hydrogen potentially have greater margins than other types like green hydrogen as much cheaper to produce.
Still would be better if HE1 had more than 2% hydrogen. What they seem to have is about 4.7 helium and about 2% hydrogen so like no revenues from the other 97% of the gas stream apart from a bit of argon maybe.
GHY haven't flow tested but got 6.8% helium and over 80% hydrogen in their gas stream. Not sure of the scale of GHYs potential resources though versus HE1.. GHYbI think potential is 1billion kg of hydrogen in the ground and working out a prospective resource for the helium
For reference it you assume US500/mcf that equates to about US100/kg for helium. And helium goes for x50 to x100 the price of methane. An iso container holds about 1000mcf of liquid helium and hold about 5000kg of the liquid helium.
Hydrogen sells for only about $5 to $10 per kg.
So natural hydrogen you might be able to process for about $2/kg if you have enough of it in volume.
But you'd ideally want much more than 2% hydrogen I reckon in the gas stream.
@LOTM-13 US650/mcf for a fixed contract not bad for liquid helium by the sound of it? So spot prices would be higher like US1000/mcf + ? Some operators just sell gaseous helium in the US as plenty of nearby liquifiers to convert to liquid helium if needed. Actually also Asian and European prices are more relevant as they're HE1 target markets given limitations of iso containers needing to reach the customer within 40 to 45 days.
One key factor is flow-rate and the following shows it's still in fluid form in the Basement for HE1 and rises through the well bore before its released from solution. So what type of a flow rate will that have?
"The Company has identified that the frequency of helium increases with depth and is preferentially carried in hot fluids out of the Basement and along fault conduits. As the helium rises through the well bore, the pressure decreases, and it is thought that the helium then comes out of solution and increases in concentration."
Is hydrogen trying to replace nat gas and other power sources? Well methane is usually over 90% in a gas stream so is 2% hydrogen in a gas stream economic? GHY Gold Hydrogen on the ASX hit over 80% hydrogen in its gas stream so wonder what's economic for hydrogen?
I don't hold BNL missed it's initial surge 3-4 years ago from under 1c to 6c +
Then was never convinced 100% on BNL due to them looking to take their Voyager project to production with a leased plant based on a contingent resource only and with no proven commercial reserves.. Finally they are flow-testing and having issues..
Usually in oil and gas I think you work to prove up commercial reserves to then get offtakes and capex finance to build a plant.. BNL were trying to skip all those steps by leasing a gaseous helium plant from IACX which was obviously risky given they hadn't flow tested and proven up any reserves at Voyager
4.7% and the large prospective resource of 138bcf looks appealing for HE1..
However look at today's announcement from BNL - Blue Star who have had the carrot of 8.8% helium and talking of going straight to production but finally after maybe 12+ months they finally are trying to flow-test the Voyager prospect and having major issues.
4.7% for HE1 looks good but it's not proven commercially until they can prove they can extract it commercially with decent flow-rates etc..
https://www.asx.com.au/markets/company/BNL
"Not correct
Noble has a gas cap above the fluids."
That's to be determined.. NHE never got a sample from the potential gas cap free gas zone
Helium player may list soon on the ASX per the AFR article. Located in South Africa near Renergen..
D3E already with contingent resources of 2C = 22bcf of helium. So maybe more advanced than HE1 which has yet to declare a discovery officially which is needed to upgrade any prospective resources to contingent resources. For reference Itumbula had a target for HE1 of 4bcf I think..
https://d3energy.com.au/
https://www.afr.com/street-talk/warrego-energy-duo-head-for-the-asx-with-helium-play-20240207-p5f31q
Are those US helium fields free gas zones trapped under a seal and just rise to surface when the drill penetrative the seal?
What NHE and HE1 have so far are liquid - water zones containing helium trapped inside the water as I understand it.. NHE is doing research with the Uni of Queensland to try to develop a process to commercially extract the helium from the water.. Maybe some sort of stimulation so the helium is released from the water then rises up to the surface..
In the past seen a few companies having trouble getting decent flow-rates due to water in the vicinity so having water trapped in the actual water makes commercial extraction a bit more of a challenge..
What HE1 got flowing to surface from basement seems needs to be explained clearly and state at what flow-rate as HE1 did not inform the market of the flow-rate.. Having a tiny bit of helium "flow" to surface maybe only at a sub-commercial flow rate for all we know at this stage for HE1.. Flow-rates will be important to de-risk HE1 in future if successful
Sorry misread it the video is new but maybe the footage is old if they relocated the plant out of Arizona as per the gasworld article
Djwall1s since that 4 year old video Desert Mountain Energy has exited Arizona for now due to needing permits for well stimulation and potential roadblocks etc.. I guess the US or at least certain US states are hard to operate in for oil and gas explorers going by this
https://www.gasworld.com/story/desert-mountain-energy-then-and-now/
Https://www.asx.com.au/markets/company/GHY
Current GHY marketcap AUD120m yet to flow test..
If it flow test successfully it might then take off who knows
Gogs what you posted references South Australia
GHY is in South Australia
HE1 is 2% hydrogen
GHY - asx listed Gold Hydrogen as per the link is 86% but yet to flow test which might happen soon
What is a good concentration to get for hydrogen?
2% of HE1 sounds low versus 86% of GHY..
https://www.listcorp.com/asx/ghy/gold-hydrogen-limited/news/very-high-concentrations-of-hydrogen-found-at-ramsay-2-2973785.html
Relax the crack is only growing one inch per year lol
https://www.dailymail.co.uk/sciencetech/article-12267587/amp/Could-Africa-split-HALF-2-000-mile-crack-widening-one-inch-year.html
Below from NHE hotcopper yesterday. The main difference is HE1 got helium to flow to surface. However maybe HE1 also want to 100% confirm reservoir performance, flow rates, and economic recoverability before they declare a discovery also
"Just got a response back from the company when asking for the Discovery announcement.
In discussion with our independent resource auditors NSAI, we are confident the data collected to date could be applied to satisfying the SPE definition of a "Discovery" however the company believes it prudent to first confirm reservoir performance, flow rates, and economic recoverability."
"This is a unique discovery"
NHE didn't declare a discovery once they got their independent lab samples back.
Lets see if HE1 does declare a discovery once the lab results are back. A discovery needs to meet SPE guidelines I believe and a critical first step in being able to categorise some helium in a "discovered" category on the pathway if successful to proving up some commercial helium reserves. See figure 1 in the link for reference
https://www.spe.org/en/industry/petroleum-resources-classification-system-definitions/
See couple of slides from 11.25 into the video. Great overview of the helium market users globally.. Second of these slides heights the importance to try to sell direct to the spot market to bypass the wholesalers like Linde if possible.. Much higher potential pricing in the spot market.. Big guys like Linde will try to lock down all supply from the likes of HE1 if successful as cheap as possible
https://youtube.com/watch?v=KSUEfZwUPb8&feature=shared
The Uni paper was referencing Renergen in South Africa. So maybe why it's called Renergen as it's nat gas appears to regenerate but not it's helium I'd say..
HE1 interesting theory anyway regarding geothermal earlier in the thread
Exxon has plenty of helium at this site
"the LaBarge site produces more than 20% of the world’s helium and has an 80-year supply remaining"
https://www.gasworld.com/story/helium-4-0-expectations-for-a-difficult-summer/