Extra wonga for Colorado31 Jul 2025 09:48
I believe on Monday we will be informed that the extra money being raised for Colorado will be to drill the other wells sooner rather then later, we have 6 and the funds from extracting HE and C02 from them wells was going to fund the next set of wells to be drilled, well as we are behind they obviously feel the need to move the ne wells along instead of waiting
The full development programme for the Galactica Project will require the drilling and tie-back of 15 wells, as well as commissioning of the relevant He and CO2 processing equipment. The initial programme, which has been funded by the capital raise, will require the drilling of six development wells which are planned for Q4 2024. Once these are complete, it is forecast that the sale of He and CO2 from these initial wells, will generate sufficient cash to fund the drilling and tie-back the remaining nine wells as the project is close to existing helium processing facilities, associated infrastructure and downstream users.
The initial wells are expected to be on stream and producing in H1 2025 and an independent third-party competent person's report indicates that an average of approximately US$2 million per annum will accrue to the Company over a period of five years. However, these estimates represent only sales from the production of helium, and the Company believes that the sale of associated CO2 into the local market, could increase this by up to 50%.