HE1 have many other licences - LB will not be out of a job.....much to do.
https://www.helium-one.com/projects/introduction/
Sam Wahab - from this week’s buy sheet - his opening executive summary states:
“The company will now fully evaluate the results from both wells in their Phase II drilling campaign BEFORE carrying out an extended well test (EWT) later this year….”
So that could be the next news from HE1. Possibly an early indication of Itumbula resource from the desk top work currently be worked on. Hope so.
7 month old press comment but still a reminder of how big the opportunity is for HE1.
“At the end of May a competent person's report reckoned that there might be as much as 2.8billion cubic feet of helium at Tai alone, an amount that equates to around half of the current global demand.”
Now add in Itumbula results….
https://www.thisismoney.co.uk/money/investing/article-12357303/amp/SMALL-CAP-IDEA-Helium-One-likely-turning-point-buying-drill-rig.html
Certainly one to watch, lots of interest. Indication of x5 monies want in, £22M. Sounds like HE1 in early days.
Lots of current news for Helium cos, gaining momentum. Good for a very niche sector. HE1 as first mover advantage in a very good place.
Getting deserved attention on next venture 👍
https://www.cityam.com/exclusive-former-helium-one-chief-chooses-londons-aim-to-float-new-venture/
And previously they raised AU$12M = £6.2M for these two drills
Noble Helium Limited (ASX:NHE) (“Noble Helium” or “the Company”) has received firm commitments from institutional, sophisticated and accredited investors to raise $12.0 million (before costs).
The Company is pleased to announce that it has received firm commitments from institutional, sophisticated, and accredited investors to raise $12.0 million (before costs) through a placement of a total of 60,000,000 million fully paid ordinary shares in the capital of the Company (Placement Shares) at an issue price of $0.20 each (Placement).
The funds will be used to drill the Company’s second exploration and appraisal well at its North Rukwa Helium Project in Tanzania in Q3 2023.
The $14M is Aus $ = £7.2M
https://www.investi.com.au/api/announcements/nhe/15277dc3-8a7.pdf
Noble Helium Chief Executive and Co-founder, Mr Justyn Wood, said:
“The two wells at Mbelele have confirmed that the North Rukwa is a unique and prolific helium producing province. With this funding we will now move as quickly as possible to appraise and test both the crestal gas cap identified and the deeper sections of Mbelele-2, which has been cased and suspended ready for a flow test and as a potential future producing well.
Keep it simple Joe.
In your opinion then what is the likely cost of the extended well test ONLY at Itumbula West drill site?
That is what they have told shareholders is their current plan - there maybe more drilling at some point (likely) but nothing has been formally stated at this junction. So shareholders will naturally be focused right now on the likely cost of the EWT.
Everyone knows there will be raise at some point - LB has stated that at every stage.
But timing and what price? I was not around in December but they will not be repeating a placing with a 72% discount. But then they were in a very different place, little choice. Now they are in a much stronger position after drill results - which LB has stated is considered commercial. To the outside world to what extent commercial is the missing part. And how big the resource?
Theoretically if they can update the market on "Resource estimates and subsurface modelling being progressed" before EWT, then if good news that will have a material effect on the share price. Then maybe raise into that.
No one knows exactly how much cash they have presently except that Chairman said on 7/3/2024, so after completing the last drill and then raising £4.7M (plus what whatever left over from the £6.1M raised in December):
"The company led placing provides Helium One with sufficient working capital to progress its planning for the next stage of the work programme in Tanzania."
The company continues to de-risk, that is the key positive at this stage. Closer to commercialisation.
LB was at pains to point out there is a lot of other background things going on atm - certainly I would not expect the company to be waiting to July for an update. Industry will be watching maybe conversing.
Joe is saying 1p raise - obviously pure speculation. My speculative prediction is a raise - that is expected at some point - sure but not soon and based on positive news flow. Element of surprise could easily catch many out. Premium placings, the market likes.
Happy to sit it out.
Flow testing: but presumably LB knows though - otherwise how could say minimum?
"Drill stem test ("DST") results carried out on the Itumbula West-1 well calculate a minimum flow rate of 0.5 million cubic feet per day ("mmscfd") containing 4.7% helium"
"With the Rukwa Basin's risk significantly de-risked through these efforts, the company's stock is undervalued, especially considering the high helium concentration which surpasses global averages for helium prospects."
.....so at 5.3p and with 3.72B shares in issue, they are suggesting a market cap circa £200M.....for starters. (Against market cap of £55M today).
As the company broker I guess they would have better knowledge than most, LB will be aware of their note before publishing.
Yep, guessing next news will be an update on current desktop analysis:
“Resource estimates and subsurface modelling being progressed”.
That news in itself could be very big - big enough to get a placing away at much higher so than currently. Fingers crossed.
Helium One in USA trades on OTC - Over The Counter.
This link explains how it works- effectively a secondary market:
https://www.investopedia.com/terms/o/otc.asp
There were only 69,000 shares traded yesterday, probably one transaction. Of no real consequence to U.K.
RNS 7/3/24: "The Company is currently advancing its subsurface modelling and updating its internal resource estimates in order to determine the best path towards the commercialisation of Itumbula."
No idea how long this will take HE1 to establish but LB seems confident of commercialisation : )
Yep, LB, "I told you so":
"We are delighted with the findings from Itumbula West-1 and the results from the down hole well testing have clearly confirmed the presence of a producing helium province in the Rukwa Rift Basin. The learnings from the Tai-3 well provided invaluable additional subsurface information and how the helium system works. By applying these findings, we adjusted our well location at Itumbula, and this has certainly yielded the results we were hoping for and justified that decision."