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Aye, stating matters of facts is considered 'De-ramping' on this joke of a board. I can't believe so called serious investors were trying to mislead people into believing that HE1 will be paying next to zero tax ffs
This board becomes more comical with every post
LOT
Some friendly advice for you = stop seeking advice from a Geologist about drilling ops, please
I have consistently stated in umpteen amount of comments that the well test will more than likely be a rigless one. It's all there in black and white. A well test package is a substantial piece of kit. I have been involved in rigging up such packages more times than your geologist friend has had hot dinners. The coil tubing spool itself can weigh 20T plus. You can just shift it on the back of a pickup truck
I strongly suggest you speak to persons who are actually involved in drilling and not Tea shack cats, who barely step foot outside
Cheers
LOT
Well test = 4+ weeks ops, requiring a lot of personal. If the personal and equipment is being shipped from overseas then it will be so at top dollar! You've got haul all the gear from A to B, so lots of articulated lorries required on top dollar and then cranes to rig it all up onsite
I think people are confusing a well test with a Teddy bears picnic. There is a lot involved, rigging up n testing the package can take a week alone. And not all tests go well. Last one I was involved in got cut short, as the flow rate did not live up to expectation, even after stimulation etc
If they're using the rig, then they'll need a night n days shift drill crew (albeit a skeleton crew) to assist + all the costs that come with running the rig
Let's be really conservative- 3mil for a well test × 2 = 6mil + 6mil to drill an appraisal well = 12 mil
Even when applying the most conservative numbers the cost is still BIG
IG
You'll find that the likes of renergen take a rig on long contract hire, which is a lot cheaper + it depends when they've done their drilling. If they've done it during a down turn (which the helium explorers aren't really effected by) then you can get rigs for pennies. In fact it's not unknown for rigs to work at a loss, as its better to keep then working that to have them cold stacked and P45'ing experienced crews
However it's bright as day that HE1's cash burn is abnormal and needs addressing asap
IG
Pulsar are drilling in the US, the birth place of drilling with a century old, well developed infrastructure. You literally have thousands of service companies/vendors on your door step. A very competitive market, which brings down cost. They also have a surplus of Rigs, so you don't have over inflated rates due to scarcity
Example - He1's roughneck issue would of been sorted in days and not months if they had been in the states. Even if they could not have fixed the iron roughneck and a new one was nor available, they would of easily rented set of power tongs (what they are using now)
Tanz has no infrastructure nor good supply chains. Everything is shipped in from overseas at great cost. The drilling consultants they're using are on 800-1k + a day through an agency. HE1 don't actually have any drilling personnel on salary/the books, so they're wages bill is through the roof! That's just for the drilling guys, nevermind the ton of deadwood, they do actually have on their books
Costs come done slowly but surely as the industry develops and grows
I'm going by what they stated at the time. Noble are all waffle n eggs. Either way 6mil for to drill a well and even at bargain rate price EWT 4mil = 10 mil. They'll need to EWT the new well = 4mil
Still BIG money whichever way you try to spin it. Even 10mil is a big raise
The usual suspects are out in force this morning
Anybody giving a running commentary on every single buy/sell is not a long term holder. 90% of people posting right now are traders
BUY back in after the placing...its not rocket science
Gold girl
It's just another storm to ride out. Once the placing is out the way and well test ops start, the SP will bounce back faster and stronger than seen previously in my opinion. Once EWT is complete and flowrates/volumes/concentrations confirmed they'll officially sign up with a JV (there will be one waiting on the sidelines) and then the SP will well and truly blast off!
Summer will be here before you know it, don't panic Captain Mainwaring, don't panic!