Member Info for KeithOz

Mindea have the Hanjin D&B30 for the deeper holes, such as we need for the KSZ. I suspect (but do not know-- hence my request for knowledgeable input) that the way they change borehole direction with this rig is by putting a wedge-shaped shoe down the hole at the diversion point, thus deflecting the angle of drilling. What I don't know is how many degrees you can deflect over a given depth without getting the drillstring jammed. We will want to do DD not RC, so cores have to be brought to surface intact - for that you would require very gentle curvature, so not sure what is possible, especially given the poor ground conditions experienced previously.

Just wondering out loud in case there are any drilling experts around. DHEM showed that the B1 borehole went between two conductors, one of which was the mouth-watering S 16K. The direction of this prospect should be obvious from the DHEM data - what are the chances of saving some time & money by re-entering the bore and then using directional drilling/drill diversion part way down to steer two additional holes right in to both the suckers? Maybe Mindea don't have this capability, or maybe ground conditions would make it too difficult.

Can't see any likelihood of anything other than massive sulphides for a S 16K conductor, especially in this position. Massive sulphides could be either copper/nickel (good, of course) or pyrite (bad). IMHO most likely to be good to very good (including PGEs).

Now that drilling has finished at both Molopo Farms & the KCB, rig & crew availability should not be an issue. Let's get it done.

@Happy - sorry to p on your parade, but I thought the East Star gold results were not suggesting anything economic. In fact, as I've said before, I thought the CPR for the whole company was one of the weakest I have ever seen for a London IPO.

The only debt financing I would consider is RBL, and HE1 will not meet the necessary criteria after just one confirmatory well. For a JV you will have to give away control - retaining 15-25% in return for free carry is common - so giving away up to 85% you do not consider dilution? Forward sales is a possibility, but a leap of faith (and thus a hell of a discount) is required to buy gas from currently nothing more than a hole in the ground in a remote part of Africa, when you are going to use it on another continent.

This is why the bod are pursuing the route they are - maintain 100% control of development, sales & margins, with modest dilution. People always seem to panic about placings, but it can be very expensive & time consuming to hold a rights issue on the London market, which is why so few smaller companies do so. I am happy with some dilution, providing the proceeds are clearly for designated investment purposes, rather than just to pay inflated salaries & to keep the lights on.

prosPects

@Dai. Let's assume a discovery is made end Q2 or early Q3. Then what? Logically more wells will be needed to produce enough helium to justify the purchase or lease of a concentrator and trucks, plus pipeline & road construction. That's a lot of money for capital costs, but immediately will produce high margin income. The share price will be a lot higher, so new shares will be placed at a much higher value than today, so less dilution.

Once this financial hump is over, the operation becomes self-financing, so other prosects can be drilled and brought into production, and Eyasi & Balangida can be worked up, all without further dilution. If they want to do things more quickly, Reserves Based Lending can be utilised.

What alternative do you propose to get us from explorer to producer?

Only two proposals:

1. TO AUTHORISE THE ALLOTMENT AND ISSUE OF WARRANTS TO SUBSCRIBE FOR EQUITY SECURITIES TO PLACEES (A response to this proposal is mandatory)
Board Recommendation: For

2. TO DISAPPLY THE STATUTORY PRE-EMPTION RIGHTS ON THE ISSUE OF WARRANTS TO SUBSCRIBE FOR EQUITY SECURITIES (A response to this proposal is mandatory)
Board Recommendation: For

Kai joined HE1 in May last year as Principal Geophysicist. I have not seen an announcement that he has changed position, although on Linkedin he is shown as Technical Director. Following Lorna's promotion, that makes sense. He still appears to be running Notting Hill Geophysics consultancy, who specialise in 3D seismic and, interestingly "Perform probabilistic volumes calculation and prospect risking for farm-in data rooms, licensing rounds or asset sales."

@Prae. These issues should not have been 'unknowns' for DM. If you are entering into a contract of this importance, everything has to be checked, and a multi-disciplinary team should have been addressing every possibility - this is basic Due Diligence. As a former business development director for a multinational, it was an important part of my job to ensure that DD was applied to all negotiations before anything was agreed in writing, let alone announced publicly. The consequences of not doing so could be disastrous. Had I failed to do this vital component of my job, I would have been fired.

For a small company such as HE1, it would have been DM's responsibility to ensure that an appropriate team was assembled, if necessary using external specialist advice, and DD carried out in an effective manner. Getting a suitable rig was the most important task for HE1 for over a year and should have been DM's top priority. Clearly DD was not performed to an adequate standard on both occasions and as a result HE1 has been caused enormous embarrassment and probably considerable financial harm.

DM failed twice, but was only fired once :-)

@Ford -agreed, watched it earlier today. Required viewing for all resource investors.

@Splice. Kobold Metals are already using AI for mineral exploration - they have JVs with Rio Tinto & BHP, also some smaller companies, notably with Bluejay in Greenland, trouble is I am profoundly unimpressed by Bluejay management. Not aware of use for O & G, but I am certain it will arrive soon.

Microsoft are working on combining ChatGPT with Bing search engine - you ask a question, it gives you a coherent answer, rather than just links to pages that may or may not be of use. A limited beta version was launched yesterday, my 15yr old daughter has been on it for hours.

@smallfishbigpond. There is a serious error in your suppositions. He is not walking, or even running, he was booted.

Also, Lorna has huge oil & gas experience in Africa, Dave had no O & G experience anywhere.

@CoCo, 0715. Absolutely correct imo.

Great move, I have lot of respect for her relevant ability & experience. I think things will start to move very quickly. Oh yes, Bye Bye Dave.

Some possibilities for the delay in announcing 2023 strategy.
1. Not yet agreed on what to do, and where, in the KCB, after the previous apparently positive geophysics & geochem data did not lead to anything.
2. If there are KSZ JV discussions ongoing, nothing can be announced until complete.
3. If there are no serious KSZ JV partners, they are not sure of how best to go it alone - expensive deep holes up north, with definite targets but of unknown mineralisation; or cheaper shallow holes down south but with yet-to-be-defined targets.
4. I would guess the Kansagras and Arigo would like a say in how their £3.5M is being spent. Add to that opinion the possibly differing views of deal-maker Peter Wynter Bee, those of the in-house geos, and also the external consultants. Someone is going to be earning their salary reconciling that lot, with the added pressure of a share price heading into the sub-penny range.

I ran Methodology's flow rate info through OpenAI's ChatGPT, this is the result:

"This text discusses the potential flow rate of 0.1, 1, and 10 mmscfd per meter of net pay in MOU-1. A regression analysis was conducted using data from the Rharb basin, which yielded an estimate of 1.15-1.36 mmscfd per meter of net pay. The company gave a 50 mmscfd potential plateau flow rate for MOU-1&2, and the regression model predicted 50.6-59mmscfd."

Next, Michael Caine, parts 1 & 2:

"This text discusses the potential value of a small gas discovery in Guercif, Morocco, which could result in a special dividend of £2 - £13 per share for shareholders. It also mentions the possibility of larger discoveries, as well as other potential sources of value such as Trinidad/EOR/CCS and Ireland. The text suggests that Paul and his colleagues have a large potential for value in the form of a "call option"."

@Christo - what Dai is trying to say is that sometimes the share price goes up, sometimes it goes down.

A reminder of Ben's New Year message on Twitter, please note last line:

Ben Turney @Ben_Turney
Jan 1
I wish #KAV’s loyal shareholders a Happy New Year & prosperous 2023

2022 was not the Year of Discovery I hoped, but we’ve taken great steps in strengthening our business with talented new team members & strong financial backing.

We will publish our 2023 strategy later in January.

This thread header triggers my PTSD - in between his political appointments, Donald Rumsfeld was the CEO of a company I worked for at the time, a position for which he was intellectually and emotionally totally unsuitable, hence the traumatic stress of his subordinates.