Member Info for MR.Spacetomato

Hello, Ezhik.

I understand that technology has greatly advanced regarding horizontal drilling, and care is taken with special process because of hole cleaning, directional control, and vibration. But I understand that this methods is successful in the USA and especially in the East North America where the hard Berea sandstone is horizontally drilled using, I think, air hammers with rotation and directional control. Great tech! How do we know they are not using this method for instance? ZPHR did say their drilling contractor is very experienced and I am sure it is not their first horizontal drill.

I understand that In horizontal drilling, high stresses in equipment and tubulars are common. Good hole cleaning often is difficult to attain, but a clean hole solves many problems. I am sure ZPHR and the contractor know these problems cause high risks in horizontal drilling operations and this emphasize the importance of planning well and be prudent.

Don't forget we even have curvature stresses, another difficulty in horizontal drilling, obviously there are strategy guidelines that call for drilling in the direction of the minimum horizontal stress, and we have just reached that point.

I am not too worried and there are more positive things about the horizontal drill is that drilling horizontally allows ZPHR to access more of the oil- and natural gas-bearing rock than drilling vertically. The evolution of directional and horizontal drilling to penetrate multiple diverse pay targets is a prime example of technological advancement that oilers have these days in my view..we are not talking of the 1950s when the story started.

Sure, one has to remain levelheaded and be prepared for an eventuality (I just had to do that with HE1 when our drill pipe broke at 550 meters). Anyway, lets hope for the best here.

Good luck

ST

Paul Meyer, part-time reporter, part-time cleaning lady/dude. I don't know why the Daily Mail would employ him? Ooops, sorry, mean Wizz News online.

No disrespect, Technical, but if the same post that you just published was published by any of these guys I would start to worry. Until then, just read the previous comments posted here and make your mind up, I would say. IMHO and DYOR.

SGF
DBD
Dai
Seismic
BP
Myoung
PJohnsey
Noob
Inthevoid
...and many other reliable contributors my memory is too old to remember right now (apologies my dears).

So, with over 10,000 feet done in about 15 days, I think it is reasonable to assume we need 7 days (including today) to reach TD, which makes Tuesday or Wednesday the RNS date, perhaps? That doesn't mean we get all the details as we need the well to be prepared for tests.

Interesting times.

Candid, Mitchells have a reputation to uphold. Should a "tip" be found out, what you are implying, Mitchells would never ever find a customer for their drilling firm..for what? A commission on a 0.5% short?

No problem, BP. I added them to my to do research list and when I get my head around it I will post it here. :0)

BP, "All add KETL to my "to research on" list. Thanks Bronte".. my exact thoughts! Thanks again for the nice summary on Bronte. Top Dude! :0)

Wyn, have a look at KETL chart, the company Bronte shorted..what a lovely chart upwards they have.

Candid,

After discussing it with a mate and the wife, we all understand, and that is really pretty obvious, shorting an AIm stock is certainly one very risky thing to do. AIM stocks can suddenly jump 100% or more depending on the news, and we all know what can happen here.
However, if you still want to do it on an AIM stock, how can you do it without you burning yourself badly? You do that by leveraging, or, you buy the same amount of stock whilst shorting it on the other hand. So, whatever the news is, you coverend yourself by closing the short whilst still making money on your held position. This is quite common.

And, what this mate of mine said was that the track record of Bronte Capital Management Pty Ltd regarding shorts is not that great, unless, of course, the leveraged the short, which then is another story.

ATB

Thanks, Tom111. For you too.

ATB

Tom111,

I think folk here are aware of the risks of being in an exploration company (the 1 out of 6 chances of success and all) and those who are holding at the moment trust we have a good share and management and our prospects look good according to the geology and licences area. I for one have joined your party later :0( but have followed it from 2.5p. I didn't buy as I had no cash available, but having followed it for a while and with the cash arriving just now, I couldn't resist. It is a good story and we are talking about the USA here!!

I have been investing in oiler in the past and I am have been right 90% of the time with my exploration oilers so far. I said this will be the last oil company I am investing and I hope it will improve my rate of success! :0)

The drop in the sp from the 7p range was expected as this is usually what happens to exploration companies post spud and drilling. The RNS will change all that very soon, I am sure you all know that.

All the best lads and ladies.

ST

Tom111, correct me if I am wrong but shouldn't oil flow and pressures be carried out after the drill is completed? I mean, would they not have to take the drill bit out before they do those tests, meaning a lot of time wasted doing that, especially with them being so close to TD, only a handful of days now? To get data they need to prepare the well too, so I wouldn't waste our time and money to do that. Plus, should they not have some kind of idea if the well will turn out good, wouldn't they just stop now and close the well? For me it is all good so far; damn, they just increased the acreage even further and what does it tell you about the project?

I have added a few more this morning at 6.12p and 6p. Happy with the progress.

ATB

ST

My dear BigPlan,

I would like to thank you for giving some of your time and dedication to write a well explained and detailed reply to my question. I sincerely thank you for that, it was more than what I was expecting.

I can say I am quite happy with the calculations and the views you expressed based on a conservative discovery; hoping we have more than that, as we have found that even low quality seals can hold helium in place, and as long as the reservoir quality is good, the reserves may materialise with higher numbers, I suppose we need to wait for the RNS to tell us more on this story.

I guess this will be an interesting journey for us all as we will explore all the gas fields in our licences, and there are plenty of them just in the Rukwa basin alone.

Thank you again, BigPlan.

All the best

ST

I would like to use a figure of 158 BCF of Helium, divided by 2, to be on the less optimistic side, perhaps? :0)

BigPlan, I definitely leave the calculations for a future share price based on HE1 becoming a giant in the HElium world to you. But I was wondering, say, what share price you would value HE1 if it were to be sold?

I am sorry people, I don't want to put the car head of the horses as we haven't even declared a commercial discovery yet, but I don't mind joining the fun before we get the RNS.

Thanks, BigPlan.

ATB

ST

Scirocco doesn't have a top CEO like our Mr. Minchin. Not surprised. :0)

Next.

That's one of the great things in life once you reach a certain age..you realise that you don't need to listen to anyone you don't want to and don't feel awkward about telling them so. You cut the garbage when you want and just do the things that you feel are worth doing. And if you don't want to please other, you don't!

Pantz1980 , in the garbage you go! Room 101..filtered.

You made me burst laughing, Dai!! :0) Damn, even our David sounded like Attemborough!!

Rooblertwo,

That poster, like so many others could well be a paid dude, dudeness, she-dude, who knows, who come to BB to influence investors to either sell or buy a stock. No one in their right frame of mind would "short" an aim stock (way too volatile), but their aim was to make Tom, Dick, Harry, Candice and Shakira to sell (in the case of HE1). You should always rely on your research and on the facts in front of you. For instance, the lots of helium bubbles on the huge lake you saw yesterday..it was surreal!!

Those bubbles we see in the Tweeter have been bubbling for thousands of years and that tells me we are, well, Tanzania is, sitting on a huge underground pool of helium. All we need is an effective trap to hold enough of the gas for us to bottle it at commercial rates. The rest will not matter.

Nc10g09, your valuations are on the very conservative side. SeagullsFan post is supported by the Hannan's report which s based on the price for Helium. I borrow his quote:

"The de-risked price for all 4 drills is £1.33 on a concentration % of 4.2. Assuming that all 4 drill are successful at the estimated reservoir sizes (big call), then if the concentration is 8.4%, the de-risked price would be £2.66. Then, factor in that HE1 have used a conservative price for HE, and £2.66 could be broken easily".

Be ready for the upward ride should we have a good RNS.