RE: Price action19 Jun 2024 00:48
ONBEY'' it may be a ridiculous comment to you, me talking about investors sticking around from 20p to 0.5p or the 0.1925p that HE1 was 5 month ago but you have only to look at HEX SP NOW'' at 23p quoting payback 2.8 years with there scooping study to understand where I'm coming from, with my comment'' and why investors lose money waiting for years, with funding call after funding call and perhaps after 3 years waiting on production and off take agreement they will also be 1p ? have a look what they have come up with to keep there investors on board...
"We are delighted with the results of this Scoping Study that demonstrate the potential for exceptional economic returns across a range of modelled scenarios.
"The Ingomar Dome Project demonstrates potentially high returns and low capital requirements. Rapid payback and free cash-flow estimates of over $40 million dollars a year release a range of finance possibilities to provide initial CAPEX requirement."
Details
The Company engaged Aeon act as independent experts in producing a Scoping Study report over the Company's Ingomar Dome project. The report was compiled by James Weaver, a petroleum engineer with 45 years of industry experience in economic analysis, production optimisation and reserves estimation and evaluation.
The Scoping Study used raw gas in place, reservoir specific recovery factors, a well spacing of 640 acres, and a helium grade of 1.5% He to determine recoverable helium resources per well. This was combined with production data from well tests undertaken on historic wells within the Company's leases (Amsden and Charles Formation) or from nearby analogous producing fields (Flathead Formation) to develop a "type-curve" for each reservoir. This allowed the development of a detailed production plan and well schedule over the life of the project.
Various iterations of the production plan were run alongside various plant and surface designs to produce an optimised schedule. This optimised schedule included the following:
· Initial production in 2025 from 3 wells supplying a 10,000Mcf/day inlet PSA plant. This reduces initial CAPEX and equity/debt burden increasing project NPV on a per-share basis.
· Self-funded expansion to 20,000Mcf/day plant in 2027 with drilling of an additional 3 wells maintaining steady state production rates.
· 7 additional production wells drilled between 2030 and 2035 to maintain pressure and flow to plant.
· Recovery of byproduct natural gas from Amsden and Charles formations to feed into an onsite co-gen facility offers significant OPEX saving.
Using a helium price of $550/Mcf, results of the optimised schedule estimated:
· NPV8 of $303.1 million
· Undiscounted net revenue of $605m (after tax, royalty, CAPEX and OPEX)
as you can see it;s all about potential ? and big numbers £300m /£605m ? to keep you hooked for years, until they find something commercial.. and as HEX only come to Market in April 2024 give them 1 y