Member Info for Scott22

BTW, ya old Cardwell KB-150 D1D rig ain't no match to our fully refurbished Epiroc Predator 220 drilling rig..........!

Yeah but. Just too bad it needed emergency refurbishment at just the wrong time, and contributed greatly to a 2 B share secondary placement at 0.25 pence. Just unforgivable for anyone who held pre-dilution shares. But the rig is in good repair for sure, and should be capable.

Processing capacity is not the short term limit. They can quadruple the flow of gas through the Pad A facility without adding a thing. The pay meter is at the A pad facility. It is already tied into a major pipeline with lots of excess capacity.

They can quadruple the flow of gas (lower quantity of course) through the Coho facility without adding a thing.

Paul has not been "quiet so as not to spook the deal". He has been quiet because he cannot say anything that would be seen as trying to promote the deal. That is just how it works from regulatory side while the deal is in process and about to be voted on in a few weeks.

Motley Fool comments on Pulsar are misleading and Ignorant

They write: In 2011, Pulsar Helium struck lucky in Minnesota. Thirteen years later, it’s still not been commercialized.

The 2011 well was a small caliber mineral rig drilling to get cores to define a nickel ore body. They unexpectedly hit a high pressure gas pocket which blew out to surface. Someone grabbed a gas sample and it tested 10.8% helium. Helium price was low then and no real demand to evaluate further. Well bore was plugged.

After Helium became a hot commodity with more demand than supply and increased pricing, someone brought that well to attention of Thomas Abraham-James, who was searching for new primary helium sources after leaving Tanzania( long story).

Pulsar was founded by Thomas Abraham James in October 2022 and went public August 2023. Within 6 months they drilled a successful gas well and will do reservoir flow tests and resource determination this month. Motley Fool talks about glacial speed of Pulsar??? They are moving at lightspeed compared to Helium One. (Also co-founded by Thomas Abraham James going public in 2015. By the way market cap of Pulsar (US $92 million) is higher than that of Helium 1 (US $84 million).

Helium will be able to prove whether or not they have a commercial resource THIS MONTH. If they do the path to production and revenues will be mush easier and faster than it will be if this summers well testing program at Itumbula are positive.

1. Top heavy Trin execs and board disappear at closing. Cost savings there.

2. Jacobin failure is fully factored in to lowish price TXP is paying for Trin. TXP will be doing all capital allocation going forward.

3. Financial hedges will largely roll off before closing. TXP will be making all hedging decisions going forward.

4. Cyber threats are ubiquitous. Trin computer systems will disappear as Trin operation is consolidated with TXP, reducing cost and vulnerability, if TXP systems are in fact more secure.

This won't close for 6-9 months. TXP needed the cash available for 2024 capital program.

Shares traded up a little on US OTC yesterday. But volume very low. 20k shares traded with total cost of those shares about US$300. If Helium 1 does rally, I am not sure there is liquidity here to sell a significant amount into an up move. I could trade on AIM for an extra US$75. If shares were at 5 cents that would be 1500 shares just to make a trade.

Flow tests are needed for reserve determination. Cannot be done at the desktop.

"I cant imagine many holders need it to triple from here!

If they bought into the story at 15-20p, why would they not top up at 5-10p."

The reason is that topping up at 10 may lead to a future chance to top up at 5 and then a future chance to top up at 1 pence. But there is no chance to top up at zero. You have not been investing in AIM very long if you have not had the opportunity to watch that play out. Sometimes it is just best to walk away and not top up. (not speaking of JBL in particular, just the reason it is not always good to double down as share price is collapsing.

Supersport: Royston / coupled with the puting in place all the infrastructure to take up to 40 bcf( I wonder why) is the reason the SP is where it is not anything else.

I think you meant putting all the infrastructure in to take production up to 40 boe/day. The reason for that is that the Cascadura Field will in the end prove be a 1 TCF field and will produce at 200 mmcf/day for the next 20 plus years. That does take some infrastructure. Building that infrastructue is not the reason for the low share price. The slower than expected ramp in production is partly responsible. There are also other reasons including failure to deliver production from Royston. lower than expected production from Coho, the long pause in drilling which has ended, the total mess getting the Rio asset swap finalized and the on shore bid round Cipero and Charuma block awards finalized.

I had hoped not to see that again

Frankly there is no "beauty" with 4 billion shares outstanding, a share price of one pence after an unforgivable massive dilution at a quarter pence wiped out long term holders, with very little cash, with no production, with the dismal share price making more capital raises ineffective and punitive. .

This is an ugly long shot at best, but Tanzania has a massive helium resource, Helium One is very much a first mover, there is some potential they could produce helium (and generate revenues) from Itumbula well and maybe one step out well, they have funding for flow tests of Itumbula well which will be done this summer, there is national interest in becoming a significant helium producer.

So I can easily justify a modest position with high risk but potential high reward. But it is not one of my high conviction picks. And it is not "a beauty". Sorry. Wish it was.

Raises like the last one (at .25 pence after a 95% drop) are just giving the company to a new group of investors in return for precious little new capital. Raises here (couldn't get much more than half a pence) are also value destroying and will also not raise significant capital. What the did with the 2 BILLION new shares is totally inexcusable. New raises at this share price just compound the injury.

SS: "Market gently waking up to how undervalued we are "

Very gently

I wish some evidence of the "transformative" year would start showing up in the share chart. The share price is usually not such a trailing indicator. We need patience I guess, not that patience has not been already tested. Still progress is happening at cascadura and there are many positive developments elsewhere that are possible if not probable in near to mid term. Like he asset swap and the bid round awards finalize, just to mention two. TXP seems very undervalued . At the least there is no risk of BK which is not always the case in small companies with a brutal downtrend in share price lasting this long (since Jan 2, 2021) and reaching this kind of a level.

Did he acually say that the flow rate was 0.5 mmcf/day. I had not heard that anywhere else. Of course who knows what the conditions were and how that measurement was obtained. So it will be very important to see what well will flow at during EWT (optimized test conditions and accurate measurements), what pressure drop and build up pressures will be, what reserves can be assigned, what is the optimal sustained flow rate for production if successful extended flow test.

In a sense the Noble test of the gas cap will be more straightforward. But the Noble test of the fractured basement will be even more complex because the basically have water saturated with helium. They are trying to learn an approach from Australian experience producing gas from coal seams.

What is clear is there is a lot of helium in Rukwa basin, as suspected. Just need the key to unlocking highly economic production.

What all the multibagger talk forgets is the math. The shares droped from 10 pence to .25 pence, a 95% drop, when 2 billion new shares were sold there, garnering very little new capital. Once that happens it takes a 40 bagger to get back to zero. The new buyers have a chance for a true multibagger. The LTH, well not so much. Best they can realistically hope for is to get most of their money back.

Lots of promise but lots of uncertainty. Lorna says twice they have a "nimble team" but the extended well test is at least 3 months off. Totally lack of clarity about future funding once they spend the few million from the most recent raise (the moderately bad one after the prior 2 billion share quarter pence catastrophic and unforgivable value destroying one). Not clear how they can raise significant additional capital from share sales at a penny a share. And I don't like the math at half million cubic feet of gas flow a day. That is only 500 MCF of gas a day, at 5% helium that is 25 MCF of helium a day. At $600 an MCF that is 21,000 a day or about $600,000 a month. (Someone please correct my back of envelope math if I am off). She says that is minimal flow rate, but it does not sound overwhelming to me. The value is that Tanzania has a huge helium system that can be exploited. But a company needs a lot more money and additional wells to figure it out. Helium One doesn't seem to have that without a JV, an off-take agreement, selling royalty stream - something else other than selling more shares which cannot help if share price not materially higher. Anyway good luck to all. The company is a phoenix laying for dead on the desert floor after the unthinkable dilution. Especiallly given current lack of ready access to capital. Can it rise like the mythical bird? I'm holding to see what happens. I am not that hopeful, but miracles do occur. And the bounce from 0.18 pence was somewhat of a miracle in itself.

They (Noble) do not need a rig as big or expensive as ours. That gas cap is very shallow.

One advantage to the new borrowing is that it is all in Trinidad where the interest is deductible to some extent. Borrowings in Canada do not receive any tax benefit.