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itv: I like your enthusiasm and always enjoy your posts. I might add a bit more if it revisits 6 pence. It still isn't that easy to buy in US, at least on SCH international platform. Have to make trade by phone, there are extra charges, there is often a spread. I have enough to make a difference if we have a positive 2023 fueled by itv energy and a great drilling crew and a Baker Hughes team eager to learn more about the well services needed for primary helium wells.
Rd145: If you have 100k in a balance of other investments that are fairly conservative, then Helium 1 might be worth 3500 pound investment. If you love helium story, you might split that 3500 among a couple of high risk/ high reward helium plays.
I have Helium One and Desert Mountain Energy and Royal Helium. Desert Mountain will win the race to production. Royal Helium is a little riskier but hopes to sell some helium in April. They have a few advantages but are low on money and are taking some risks on production facility. Helium One has biggest potential resource and in my opinion biggest upside. But risk also likely highest since they do not yet have a discovery and only have the money for one more try. Once they have a commercial discovery then risk will plummet and I think they can fund a modular processing unit, as they have talked about for a few years. Production is at least a year away (almost impossible) and more likely two.
Available now as previously recorded prevention on Investor Meet Platform. They will also post written answers to any questions they did not get to. Lorna and also Mike did a great job and it was nice to get a sense of their skills and personalities. David also made a point of thanking entire list of team members which was great and gave appreciation for the scale of work that has been ongoing. Anyway, I would strongly recommend that anyone with enough interest to own shares will find this hour worthwhile. Similar for persons considering investing .
It would be nice if they can do this drill and testing and declare commercial discovery in Q1, with cash on hand before declaring any placing. They surely would be able to do a placing at higher price if all that can happen with cash on hand.
They will need $100 million in some fashion to get to production and sales which is the required step to start to build production incrementally by funding the second processing unit from the first and the third from the first and second. If part of that is from new equity would be much better to raise that at much higher share price, though of course there are other options like the right partnership.
Pretty soon they could have a shot at becoming a globally important helium producer, maybe within 3-4 years. But that is a dream at this point. but at least a dream that is somewhat plausible based on the resource we think is there, the team assembled, and all the background of how we have progressed to this point in time. Clearly the next step seems to be a make or break effort, and it should happen (the second attempt at Mt Everest) in Q1, 2023.
My point exactly - the rig is active with a crew already assembled that knows how it works and how to work together as a team. Plus that team is already working with the Baker Hughes team that may prove crucial in proving a commercial discovery. This is a much better plan. And the cost is not much more. I was just expressing the hope that DM would prove his timing chops by starting Friday conference with - “we got it done - contract signed”. Because share price is set up to respond positively to that, now DM has everyone’s attention again.
They have the MOU and pricing is pretty set. The only disappointing sentence in the RNS was “we look forward to finalizing the contract negotiations “. That is partly because they had an understanding about the Predator for a long time. This is much better especially since it comes with an experienced crew and it is bundled with Baker Hughes and then he two teams are working together. But would’ve it be a brilliant move if they were able to announce the contract on Friday after getting this ramp of interest. Talk about timing it for maximal impact. Would be brilliant. I would give DM style points.
It is not crazy. If they are really talking about finalizing negotiations about and MOU that is already signed, what is going to be so different in the next few weeks that they just could settle the details now.
The EIA/CEC document is on the Discord site in a separate channel. Chapter 3 (section 3.5) includes details about the liquids pipeline. 8.3 km, six inch line. Will start end if Q2 2023. Will take 3.5 months. Will finish early Q4. Will cost $US 4.2 million. Will follow abandoned road to Heritage Riser tie-in site at Saunders Trace.
The 20 inch pipe is to the expanded Cascadura A well pad where the main facility is. It has a capacity of 250 mmcf/day without any compression. The connecting pipes from the Casca B and Casca C well pads will be smaller.(I am not sure how big but likely spelled out in specs. I think they will be built by TXP but I am not positive. The B and C pads look far apart on the Ortoire block schematic in the corporate presention. But they are remarkably close. I think the B pad is about 500 meters away from the A pad.. The C pad is about 1.5 km beyond the B pad. The entire pool size is 1221 acres. The liquids pipeline south to the oil pipeline is a six inch line 8.3 km long (starting at the main facility on the expanded A pad and will be built by TXP Primera construction subsidiary. However they can truck the liquids until that is done, likely for months.
dai: now we are really getting down there. I have always talked about penny stocks but I always thought that meant under US $5.00 . Because in US most stocks that trade there go belly up eventually.
But now you are talking about a real stock literally trading for one penny! Of course that is the AIM world where billions of shares are not unusual. How many actual 1 penny stocks do you think might survive.
My only residual problem (after much education from my AIM friends) with billions of shares at a penny is the spread. After all as I have been told the market cap is the market cap and the percent increase and decrease is the same at whatever price the shares trade. But if the bid is a penny and the offer is 2 pennies, someone makes a lot of cash on every trade. And not usually the small investor trying to buy some. How is that different than the bid being at $100 and the ask being at $200. It is all the same thing, right? But somehow it is just a little cleaner if bid is $100.00 and ask is $100.01. Not as much there for the market makers. They have to earn their dollars like we do, from success of the company and growth of the market cap.
The overall agreement was extended to 2026. (see below) Heritage gets carry on three more exploration wells. However Heritage has to pay 20% of all costs related to facilities and development well drilling for commercial production. So they will owe TXP a lot on the cascadura processing facility which includes the separators fabricated in Canada and shipped to Trinidad.
There is a separate agreement with NGC for natural gas only where NGC pays for pipelines to the drill pad and pays a fixed price at the well head. Thus they paid TXP for the pipeline from Coho to Shell facility because that was started before the fixed price agreement was signed. And they are constructing the 1.7 km pipeline connection to the Cascadura A pad.
Heritage will still have to pay 20% of all of the costs for facilities at Cascadura including the construction and the processing equipment and storage tanks and also the liquids pipeline south to the oil pipeline. All of of that will cost about $15-$20 million so Heritage will have to cover $3-$4 million.
The GoTT approved a five-year extension of the exploration period of the Ortoire Licence to July 31, 2026. As
part of the extension, Touchstone is required to drill three exploration wells to minimum depths of 6,000
true vertical feet prior to the end of the amended Licence term. The three exploration wells are in addition
to the five previous wells drilled to date on the property. Similar to the previous minimum work program, we
will be responsible for 100 percent of the drilling, completion and testing costs for the three additional
exploration wells. Each party to the Licence remains responsible for its working interest costs associated
with the development of commercial fields, including expenditures relating to facilities construction and
development well drilling.
The Licence extension will permit us to continue exploration operations on acreage that have not already
been deemed commercial, and no acreage was surrendered pursuant to the extension.
NGC pays for the pipelines be it is building. Heritage was carried on the drills but I think pays 20% of facilities to produce the liquids. That may include liquids pipeline to the south. Maybe someone has a reference to the exact terms of the agreement.
HeliumBalloonman: It is not as simple as that. Say you are not happy with Helium1 at the moment But you have followed the company for a long time and have bought and held the shares and you do believe the story. So you fear that if you sell and go somewhere else Helium1 may actually pull it off and make a commercial discovery at Tai end of Q1. And you do not want to suffer terrible seller's remorse. Which we have all had if we have been doing this a long time and are a little bit honest.
Did He1 actually buy that rig, or just fix it up. Who actually owns it. When we move it to Tanzania how long do we have it for, and will it stay in country. Who will be the crew that does the drilling. What is the contract like? Baker Hughes is world class in terms of the testing and seems to be excited to be learning more themselves about primary helium wells. But you would think the drilling team will also be important likely more so. Can't test it and complete it if things do not go well. Anyway, I am betting they do have a successful drill at Tai and do prove a commercial discovery. I guess we are all betting on that, because if some one betting against it, why are they holding shares at this really important time?