Member Info for london_

The II's to hold out for positive news before converting?

If the current trend continues and the CLN is converted fully before any (potential) good news that might see the SP recover, I could see there being more than 10-11 billion shares in issue.

The SP was last at the quoted level around the 19th/20th August last. That's when the first conversion RNS was announced.

BUT, this is the closest HE1 have been to actually producing. If you believe that the next steps will show positive results (Rukwa ESP and Colorado), then there SHOULD be a re-rate. If you don't then you shouldn't be invested.

The 2C resource is 295,797 Mscf, with the gas itself being worth a low end value of $130 million and a high end of $450 million (according to Gemini any).

Now if that's correct and IF they can meet the 2C estimate, I'm not sure how that translates into SP/MCAP based on calculations and expenses.

£700 mill MCap?!

Toffers - I'm just looking at IF the CLN's follow the current conversion trend (shares in issue AND basing it on some random brokers target (SP/MCAP based on shares in issue).

I was just working this out. If the conversion happens in, say, another 4 chunks, at ever decreasing prices, then there could be 10-12bn shares in issue once the CLN has been completed. So any target (if it were to be met), would be half (or lower) of what they suggested.

Triumph - this all hinges on the ESP 'working' and the 'unique helium play' being uniquely positive.

If that doesn't work, then all that keeps the lights on for now is Colorado (if that gets going sooner rather than later).

When will it be announced exactly how the £10,000,000 is going to be used?

Colorado could be worth $5-10 million a year to HE1?

I was trying to find evidence that an ESP has worked for helium/gas extraction.

It looks like a largely unproven and novel methodology.

Pulsar Helium have used a compression well head to significantly increase flow rates. This is different as the well head is at the top, rather than at bottom of the well.

If this works, then is this not a breakthrough method of mining/extracting helium?

If the CLN keeps being converted at these prices, how many additional shares will be added?

That's about 1/4 of the CLN converted, with 600,000,000 additional shares.

The SP has dropped nearly 10% between conversions.

So this is headed one way - for now. The number of shares issued with each conversion will increase.

The question is how low will it go.

And will the £10,000,000 the company receives actually lead to a positive outcome?!

Close to 1 billion shares traded since 15th Aug!

What's the benefit of the signing ceremony? Exposure?

Would the II not want to convert gradually, hopefully anticipating good news? Mass conversion would sink the SP? Gradual, less so. And positive news would counteract the dilution?

It's a balancing act of the II to get as many shares as possible on the cheap, without the SP tumbling so they can realise the maximum profit on potential good news?

Also, how urgent are HE1 for the £10 million?

Is there any benefit for the conversion to happen at a higher SP for the II's?

There was a good post on here yesterday that said the exploration license was coming towards its expiration, and HE1 were able to prove the resource up enough to get the ML done. The next step is to show that the higher resource estimates can be met and extraction too. That's where the next financing comes in.

Let's hope the next step can be taken in Q4 of this year and the higher resource estimates shown to be possible.

An update on Colorado would be useful right now - what's the extra funds for? How are BlueStar holding up their side of the deal?

Production needs to happen soon!

Could you share what you are 'reading between the lines'? Explicit opinions are useful.

Good reply CP.

BUT, someone is happy to buy big - as has been over the last few days. There's been a few 8mill + trades