Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Google got me this result so maybe geothermal helium is from the usual uranium and thorium process that takes eons to generate the helium?
"Crustal heat and helium are both produced by natural decay processes of uranium and thorium radioactive minerals that content in rocks. Geothermal areas having hot springs with high helium concentration are generally associated with high heat flow due to ascending high temperature hydrothermal fluids"
I have seen a uni paper hiwever where nat gas could be regenerative as below. Link and extract below
"The natural gas is being produced from the well biogenically, is being produced as quickly as the gas can be extracted"
https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://wiredspace.wits.ac.za/bitstreams/01afdb47-a94d-4908-bb04-36ef5e565962/download&ved=2ahUKEwjl9-eooJuEAxVqxTgGHRCkAcgQFnoECBYQAQ&usg=AOvVaw2sSTwlAZyg7xO4vCKtKKuM
Industry definitions at the link.. As per the figure 1 what has undisputed commercial value are proven reserves.. Today HE1 is yet to declare a discovery as validated by industry experts so nothing can move up to contingent resources and/or reserves at this stage from HE1's prospective resources
https://www.spe.org/en/industry/petroleum-resources-classification-system-definitions/
From the RNS
"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."
So how fast would the above flow to surface if there's solution the helium needs to escape from versus a trap of free gas including helium that's being building up in the trap zone and then pierced by the drill ? Lots of factors also on geology permeability porosity etc.. impact the flow rate
£82m marketcap today for HE1 is very close to the current Renergen marketcap.
Renergen marketcap did reach about £250m equivalent marketcap about 2 years ago when it confirmed its reserves of 13.6bcf helium 0.4tcf methane..
Delays have on its pilot plant have put it into an orphan period but recently MGE played to but 5.5% of its Tetra4 subsidiary at a valuation of about £375m equivalent for Renergen..
Longterm Renergen expected to hit ebitda of about £250m per year from 2026-2027 from its Phase 2 plant with scope for further expansions.. Today about 147m shares on issue with a few to be added for its Nasdaq listing - Phase 2 mostly funded by US750m in loans..
Feedback to an NHE Noble Helium investors questions on why a discovery not yet confirmed by NHE:
"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."
https://hotcopper.com.au/threads/he1-update.7709590/page-82?post_id=72303473
Could this reasoning be the same for HE1 as to why they haven't declared an official discovery as yet? Or is exsolved gas from fluids rising to surface along with fluid samples enough for HE1 to declare a discovery once they get lab results back? Time will tell I guess
NHE are 2U 176bcf of helium so larger prospective resource than HE1 of 2U of 138bcf. The globe only uses 6bcf per year so both large number regardless what counts is what can eventually be proven up into reserves. Tanzania has potential time will tell..
Also per extracts from the link as presented to the North American Helium Conference its estimated Renergen in South Africa could have over 400bcf of helium present noting they already have about 14bcf of proven commercial helium reserves and barely scratched the surface yet on their Virginia Gas Project area. They are concentrating on building a plant to supply about 8% of the globe from 2026 or so before maybe looking to expand beyond that.. Renergen avg about 3.4% helium remaing like 95% of renergen gas is methane while HE1 hit 2% hydrogen and about 4% helium. 95% methane v 2% hydrogen at a guess the methane dollar value at 95% methane is much higher for Renergen versus 2% hydrogen for HE1 dollar wise
"Based on understanding of the regional geology we estimate that over 400 billion cubic feet of
helium is present in the Renergen Production Right area."
https://hotcopper.com.au/threads/renergen-general-discussion.6326284/page-1688?post_id=66767620
Qatar and Russia are the largest actual proven commercial reserves outside of the USA as I understand it
1.5p raise it hit a high of 3.7p two days ago
From the highlights in the RNS below - my understanding is they only obtained fluid samples.. References elsewhere to gas samples elsewhere in the RNS I interpret as being the helium gas from inside the fluids.. If it was free gas they would of clearly said so in the Highlights section in the RNS in my opinion
"· Downhole fluid samples have been obtained from three separate well test intervals, in the Basement and across the fault zones, all were analysed at surface in an onsite pressure-volume-temperature ("PVT") laboratory and indicated the presence of elevated helium"
"HE1 discovery to date is above expectations."
That is unclear to me and to others as per the extract from hotcopper below things could of been explained better maybe
Was the HE1 pre-drill estimate of about 4bcf at itumbula based on a free gas zone? What does it mean when HE1 have only hit fluids-water and gas comes out of the water. Water must be taking up space so they'd be less gas coming out of water versus if the same area was just full of free gas for instance?
"it is not 2.5% of the reservoir but 2.5% of the gas that is freed from the water when the pressure is released and the micro-bubbles expand.
So how much He is really there? I think they really need to explain this better."
Maim difference between HE1 and NHE was HE1 got helium to flow to surface so is that enough as that helium maybe exsolved from basement where HE1 got fluid samples but no free gas sample from downhole.. So is the exsolved helium rising to surface enough to declare a conventional discovery or maybe an unconventional discovery given no free gas sample.. Depends on the criteria needed to satisfy the regulators in order to declare a discovery
"You know as well as anybody that it can't be declared until independently verified."
That's the point on Noble Helium independent lab analysis but still no discovery declared..
Will HE1 be able to declare a discovery once they have lab results back with only fluid samples taken dowmhole? That's what I'm wondering time will tell
The question is why didn't HE1 clearly use the D word "discovery" in their RNS ?
No free gas sample taken downhole maybe?
Only fluid collected downhole containing gas in the fluids?
Free has can easily reach surface if you drill into where it's trapped and released to surface hopefully at a decent flow rate..
Does HE1 have traps with free gas or just fluids underground at this stage?
So basically do you need a free gas sample taken downhole in order to declare a conventional discovery?
Yes there's gas in the fluids so HE1 might have more to do to show the regulators it can be first categories a discovery and then determine a way they can commercially extract it
No I don't mean commercial discovery just a discovery being declared
Look up the chart showing prospective resources contingent resources and reserves..
Prospective resources are categorised as undiscovered
Contingent resources are discovered but still in the sub-commercial category until further proven up to reserves
Reserves are where its at as commercial and discovered.. It becomes possible to get loans coupled with customer offtakes for instance once you have reserves for instance.. Getting to reserves takes time if successful drilling appraisal well(s) etc..
Hmmmm 2.8p ipo to 28p so x10 how did that happen?
It's called speculation
Official discovery in an rns is yet to happen as far as I'm aware.. go search for "discovery" in an rns
Further you can't upgrade any prospective resources to contingent resources and then reserves until officially a discovery is declared
Going by the Lassonde Curve we have HE1 still in the speculation stage..
No official discovery has been declared yet..
It's after an official discovery that the orphan period starts
NHE gapped up on open to 13c high of 13.5c but back under 13c.. 13c was a recent raise price level for NHE so not sure how many of those are still held back any who wanted to flip them for a quick profit
Https://hotcopper.com.au/asx/nhe/discussion/
You can see the ASX NHE discussion down under at this link... Noble guy clearly indicated lab results needed to declare a discovery in a previous announcement but once lab results are back no discovery declared?
NHE big talk but the ASX pushed them down once they understood they had no free samples just the potential of a free gas zone in the gas cap for which they didn't get a sample and hence need to return to try to obtain..
Even with lab results they still haven't been able to declare a discovery take note of their cautionary statement..
So plenty hinges on the potential gas cap and getting a free gas sample from there.. Plus research with the Uni of Qld to potentially develop a method to extract helium from the fluids / water zones..
HE1 has something similar fluids / water with helium in it also.. Main difference being somehow they managed to exsolve some helium out of the fluids in basement that flowed to surface.. All HE1 downhole samples were fluids as I understand it
Mate I searched "discovery" in the latest RNS and the search yielded zero results
To be officially a discovery it should be stated as a "discovery" in an RNS ?
Not some comment on their own website which isn't heavily scrutinised like an RNS is?