Member Info for MCNol

She wont be able to help herself, snide negative posts which I have started calling out as I am tired of her Orchid activities here...

Blubay, unwarranted negativity yet again, you fail to acknowledge the the fact that the ESP is already on-site as of mid-January means they have already won that half of the battle for this phase. They have cleared the port, survived the mud, and navigated the "Local Content" rules. The battle now shifts from Logistics (getting it there) to Geology (making it flow)....

@Lenin Helium One has successfully navigated the most dangerous part of the Lassonde Curve by transforming from a pure explorer into a revenue-generating producer. While the historic dilution has been significant, the company enters 2026 in its strongest position yet: the Colorado Galactica project achieved "First Gas" in late December and is launching initial sales this month, providing a vital cash-flow buffer that reduces the need for further dilutive fundraises. Meanwhile, in Tanzania, the arrival of the Electrical Submersible Pump (ESP) marks a major value-inflection point, as it is designed to prove that the massive 5.5% helium discovery at Rukwa can be produced at commercial scale. For a "maximum risk" investor, the fundamentals are now supported by real-world production hardware and a clear path to self-funding, shifting the story from speculative "hope" to tangible operational delivery...

Yet again Blubays comment is inaccurate because it conflates the absence of a "classic gas cap" with the absence of free gas, which the 2025 CPR confirmed exists as a distinct phase within the rock fractures. By framing the helium as merely "diffuse" in water, it ignores the evidence that gas was flowing independently during tests, suggesting the Gas-Water Ratio is significantly higher and more commercially viable than the "liquid-only" samples imply...

To call it "Free Gas" in a formal regulatory announcement, you need specific pressure data from a Competent Person’s Report (CPR). The Sproule-ERCE CPR (May 2025) was the first time independent experts looked at the pressure readings and confirmed: "Yes, this isn't just dissolved gas; there is a primary gas cap here."

They didn't "hide" the free gas; they verified it. In the high-stakes world of the London Stock Exchange, you only announce a "Free Gas State" when you have the pressure logs to prove it to the regulators...

I apologise Broomtree, I have explained it below in simpler terms in the hope you are able to understand the situation...

Brromtree Imagine you have two piggy banks. One is in your bedroom (that’s Colorado), and one is in a giant, far-away playground (that’s Tanzania). Some people said you’d never get any money into either one, but just last month (December 2025), you actually started putting coins into your bedroom piggy bank!

Now that you’ve proved you can do it at home, you’re using the same plan for the big playground. Even though the playground is far away, you aren't trying to buy all the expensive toys at once; instead, you’re "renting" them (like a library book), which is a smart way to save your pocket money. And while some people think you’re just standing around, your special digger has already been working hard to clean out the hole. Now, you’re just waiting for a super-strong straw (the pump) to arrive so you can pull out the "liquid gold" bubbles that are hiding deep underground!

@Broomtree here is a breakdown of why the "Colorado Model" is the exact proof-of-concept needed for Tanzania.

1. The "Modular" Operational Blueprint

The biggest similarity isn't the geology; it's the kit.

Colorado: The Galactica project uses the Pinon Canyon processing plant—a modular, "plug-and-play" unit designed to be built off-site and trucked in.

Tanzania: HE1 plans to use the exact same modular approach at Rukwa. By proving in Colorado that you can process helium efficiently using these mobile units (rather than building a fixed $500m refinery), they have de-risked the entire technical strategy for Tanzania.

2. The Commercial "Phasing" Strategy

Broomtree mentions "costs and markets" are different. While true, the revenue strategy is identical.

Colorado: HE1 started with "First Gas" in late 2025, followed by short-term off take agreements in January 2026 to generate immediate cash.

Tanzania: The 2025 CPR (Competent Person's Report) by Sproule-ERCE outlines an Early Production System (EPS). This is a mirror image of the Colorado ramp-up: start small with 5 wells to get cash flowing, then use that cash to fund the full-field 60-well development.

Overcoming the "Remote" Myth, Broomtree claims location and infrastructure make them "totally different."

Colorado is remote too, requiring gas gathering systems and well tie-ins. The difference is simply scale.

Because the helium grade in Tanzania is 5.5% to 7.6% (compared to Colorado’s ~3%), Tanzania actually has a higher margin for error. You can afford more expensive logistics when every truckload of gas contains twice as much "liquid gold" as the US equivalent...

Broomtree thinks a "model" refers to the landscape. In reality, the "model" refers to how a junior explorer becomes a producer without bankrupting itself. By succeeding in Colorado, HE1 has proven they can...

Lease equipment to save upfront cash (as they did in Oct 2025).

Achieve first gas within a 12-month window.

Secure off take agreements for primary helium.

If they can do it in the "established" US market, the much higher-grade Tanzanian asset becomes an exercise in replication, not just exploration....

Why Slacker is wrong (continued)

The "Bottom Line" for Slacker is that they are looking in the rearview mirror. By achieving First Gas in Colorado in December 2025 and moving to revenue generation in January 2026, HE1 has already proven the "standalone" model works. The Tanzanian project is simply the Colorado model scaled up to a global level....

@Slacker246. if you believe Chat GPT I fear for your decision making skills. These are the reasons why your post is factually inaccurate...

It uses generalised industry risks to ignore the specific, high-grade breakthroughs HE1 has achieved in 2026.

1. The "By-Product" Fallacy (Primary vs. Secondary Helium) Slacker claims that helium only pays when it’s a by-product of natural gas. This is outdated; Most global helium is 0.1% to 0.3% concentration. At those tiny levels, you need methane to pay the bills.

HE1 has confirmed 5.5% to 7.6% helium at Rukwa. This is a "Primary Helium" project. Because the concentration is 20x higher than by-product fields, you don't need methane. The "waste" gas is Nitrogen, which is environmentally friendly and requires far cheaper processing than stripping out explosive methane or $CO_2$.

2. Flow Rates: The "Basement" Breakthrough) Slacker claims flow rates are too low to be commercial. The 2024/2025 Extended Well Tests (EWT) at ITW-1 proved sustained flow from the "Fractured Basement." Unlike traditional sandstone, fractured basement reservoirs can act like high-speed highways for gas. HE1’s use of ESP pumps in January 2026 is specifically designed to maximise these flow rates. The high concentration means every cubic foot HE1 produces is worth 18 times more than a cubic foot from a US by-product well.

3. CAPEX: The "Modular" Advantage, Slacker paints a picture of massive, multi-billion dollar plants. Modern helium extraction has moved to Modular Transition Units (MTUs).The HE1 isn't building a $500m Qatar-style refinery. They are using "Plug-and-Play" containerised units. Furthermore, HE1 owns its own rig (the Epiroc 220), which slashes drilling CAPEX compared to competitors who have to rent rigs at daily "spot" rates.

4. Logistics: The "Value-to-Weight" Ratio. Slacker claims transporting helium from inland Tanzania is too expensive. Helium is the second lightest element; it is incredibly cheap to transport relative to its value. A single ISO container of liquid helium can be worth $500,000 to $1,000,000. You can truck that value across a continent far more profitably than you can truck low-value coal or iron ore. Tanzania’s "remote" location is irrelevant when the product is essentially "liquid gold" on wheels.

5. The "No Local Demand" Red Herring. Slacker notes there is no demand in Tanzania. This is like saying a gold mine in the desert is worthless because there are no jewellery stores nearby. Helium is a global commodity. It is sold on the international market to end-users like SpaceX, Intel, and Siemens. The lack of a "local MRI shop" has zero impact on a project designed for global export.

...and it is the case that In modern geothermal-style developments (which Rukwa resembles), re-injection wells are placed miles away or in different fault blocks.

Because the rift is broken into "compartments" by faults, engineers can put the "empty" water back into a different section where it acts as a pressure support without ever mixing with the fresh helium stream at the producer well.

It is probably better for you to know what you are talking about @Blubay, rather than just copy and pasting from documents containing information you do not have a complete understanding of...

As we now know this is not a "dead" reservoir. Helium One is working on a "live" one. The ESP test results will likely show that the earth is "refilling" the well naturally, which is the final piece of the puzzle needed to move from "exploration" to a multi-billion pound production asset.

We already know it flows (5.5%). The ESP test is now purely an "economic stress test" to prove exactly what Blubay is worried about. If the pressure holds steady during high-volume pumping this month, it effectively kills the "Finite Tank" argument and proves Rukwa is a multi-decade primary helium province...

Blubay you are incorrect whilst your comment 'yes and no to the last bit" shows you are thinking of a "gas in solution" model where gas is just a tiny passenger in the water. However, HE1 has officially stated that the basement at ITW-1 contains "Free Gas." In a Free Gas system, the ratio isn't fixed; as you lower the pressure, the gas can expand and "overtake" the water.

The company explicitly stated in December 2025 that they expect the ESP to increase the GWR. By lowering the bottom-hole pressure, they want to see that ratio climb from 0.25 to 0.50 or higher. If the GWR increases, the "1.3% total volume" math suddenly doubles or triples...

In simple terms, helium is like a guest who refuses to get into a swimming pool; it can technically go in, but it hates being there and will jump out at the first opportunity. While it is possible for helium to dissolve in water, it is actually the least soluble gas on Earth, meaning it much prefers to stay as a gas bubble than to mix into a liquid.

Deep underground in Tanzania, the high pressure forces a small amount of helium into the water, but the vast majority remains as "Free Gas" bubbles trapped in the rock cracks. This is why the ESP pump is so effective: as it lifts the water and lowers the pressure, the helium "pops" out of the liquid and the rock like bubbles in a freshly opened bottle of fizzy water, allowing it to be easily collected at the surface...

While some helium is dissolved in the water (acting as a carrier), the vast majority of the high-grade concentration (5.5%+) must exist as Free Gas because the water simply doesn't have the "room" to hold that much helium in solution.

Indeed Punter it is not 'perpetual' analysts are modelling a life-of-project exceeding 12 to 20 years...

Unlike a traditional gas "pocket" that follows a steep decline curve (where pressure drops quickly), a fractured basement play like Rukwa often follows a "plateau" or "recharge" curve...

Because the helium is being "carried" by hydrothermal fluids from the deep basement, the well doesn't necessarily run dry. Instead, it enters a state of dynamic equilibrium where the rate of helium being "rinsed" out of the ancient rock matches the rate of extraction...

I am hoping that we see concentrations rise closer to the 7.6% peak measured in the fractured basement as a result of the use of the ESP... FYI the Industry commercial floor is 0.3%...

Pete, HE1 have stated that the helium is in a "free gas state." This means it exists as actual gas bubbles trapped within the water-saturated fractures of the rock. They aren't "part of" the water; they are "blocked by" the water.

By pumping more water faster, they lower the "bottom-hole pressure," which allows the trapped Free Gas to expand and flow to the surface in higher concentrations...

The goal of the ESP is not to pump the entire reservoir dry—that is impossible. The goal is to create a "Pressure Sink" (or a Drawdown) at the bottom of the well...

Rukwa is a "Fractured Basement" play. The water and gas are mixed throughout a network of cracks in the granite. There is no "bottom" to the water; it is the "carrier fluid" that moves through the entire fracture system. If you drill deeper, you just hit more water-filled cracks.

@CrustyPete you are suggesting that he helium is "contained within the water" (like a carbonated drink). If that were 100% true, the helium would be dissolved in the water, and you would only get the gas out once you reduced the pressure at the surface...

HE1 has explicitly stated (in their December 2025 RNS) that the helium at ITW-1 is actually in a "free gas state." It is not dissolved like sugar in tea; it is sitting as tiny bubbles or pockets of gas trapped alongside the water...

Because the reservoir is so full of water, the water "chokes" the flow. The helium is there, but the water is heavier and more abundant, so it blocks the gas from reaching the well pipe in large quantities...

The goal of the ESP test is the side effect of that pumping...Pressure Reduction.

The goal is to create a "cone of depression" around the bottom of the well. By removing the water immediately surrounding the well bore, you create a low-pressure zone. The gas—which is much lighter and more mobile than water—will rush into that low-pressure zone faster than the water can move back in to replace it....

This is exactly what the CEO, mentioned this week. The ESP isn't just about "more water"; it’s about changing the ratio. If they pump water faster, they expect the helium to flow disproportionately faster, increasing the 5.5% concentration they've already seen....

I saw over the weekend someone was asking how the ESP works...n simple terms, an Electrical Submersible Pump (ESP) acts like a powerful "sump pump" designed to work deep underground. In the case of Helium One's ITW-1 well in Tanzania, the pump's job is not to pull the helium up directly, but rather to clear the way for it.

The "Straw and Water" Analogy

Imagine you are trying to blow bubbles through a straw into a glass of water, but there is a heavy layer of syrup sitting on top of the water. To get your bubbles (the helium) to the surface, you first have to remove that heavy syrup...

In the Rukwa Basin, the helium gas is "trapped" underground by a massive amount of water. The weight of this water creates hydrostatic pressure that pushes down on the gas, preventing it from flowing out.

How the ESP Process Works

A long, narrow string of pumps and an electric motor are lowered thousands of feet into the well bore until they are fully submerged in the underground water...

When the power is turned on, the pump’s spinning blades (impellers) push the water up to the surface. This process is called "dewatering" or "unloading" the well...

As the pump removes thousands of barrels of water, the "weight" pressing down on the helium reservoir disappears.

With the water out of the way, the helium—which is naturally under pressure—can finally expand and rush to the surface through the space around the pump (the annulus)...

By using an ESP, Helium One is trying to achieve commercial flow rates. During previous tests, the gas flowed naturally, but it was fighting against the water. The ESP "supercharges" this process, allowing the team to see exactly how much helium the reservoir can produce when it’s not being held back...

It seems Blubays multiple ID "ContrarianQuest" is keen on being as dull as its creator...

You miss the fundamental shift in corporate creditworthiness that production creates. In the "pre-revenue" phase, HE1 was forced into dilutive equity raises because it had no collateral; however, moving into the production phase in January 2026 allows the company to transition from spending cash to leveraging assets.

By generating steady EBITDA from the Colorado project, the board can now approach banks or institutional lenders for non-dilutive project finance or debt, using the proven US income to service interest payments rather than selling more shares to fund Tanzania.

Furthermore, the move to a leasing model for the Pinon Canyon plant was a strategic "capital preservation" play that successfully avoided a massive upfront share placing, and while it introduces an ongoing rental cost, the high margins on helium ($/Mcf) ensure that the project remains a net contributor to the balance sheet. In short, Colorado doesn't need to literally "pay for" Tanzania in cash; it simply needs to prove that HE1 is a bankable business...

The "fantasy maths" argument falls short because it ignores that the Colorado project was specifically chosen for its low-cost entry and high margins, even with a lease. While Blue Star (the operator) is raising money for expansion and general runway, Helium One’s portion of the Phase 1 costs was largely covered by their initial $1.5m farm-in and drilling cap ($450k per well).

According to recent operator data, the cash costs for the Pinon Canyon plant are approximately $13/Mcf, while helium prices in the US are significantly higher (often several hundred dollars per Mcf). Even with a 17.4% royalty and leasing costs, the "Net Revenue Interest" of ~82.6% leaves a substantial margin.

The goal isn't for Colorado to pay for a $50m factory in Tanzania today; it’s to cover corporate overheads and debt servicing. By being a "producer," HE1 can now secure non-dilutive debt (loans) rather than issuing more shares, which is the real way they protect shareholder value while funding the larger African asset.

@Broomtree fails to account for the strategic value of revenue and the specific math behind the Colorado project.