RE: Budget22 Sep 2024 12:36
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)
· Robust economics with positive NPV8 down to 0.4% Helium grade or Helium price down to $125/Mcf
· Initial CAPEX requirement of $19.7 million
· Initial CAPEX payback in 12 months
· Time to first payout of 2.58 years