The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Really? Some de risking. Small trades. Looks like a holding for news pattern to me.
Very tight ship this one Nobody knows anything outside the company.
Yes because it's you!
Ezhic. I think EWT will likely include artificial lift. Interested in what others think.
Dreaming - I think there are so many parameters that need to be understood that it isnt that simple. With 4.7% helium you could say that the flow rate can be relatively low (to other production scenarios). However it would be great to have a high flow and high helium concentration. I think it's important to note that the flow rate disclosed was the lowest flow rate they observed.
Will they need to drill more wells to get to a commercial volume? How is that funded? Does it pay for itself or do they need to borrow. Will they get a JV to support bringing the find to production? So much to consider. And yet still, the 4.7% helium is what makes this compelling and improves the chances.
Ultimately HE1 will have to explain if they have a commercial find considering the flow/purity/capex/market factors. It's important for me at least to recognise that before the Itumbula drill this was very very high risk and that having found helium it is de risked a great deal. But nothing is certain.
Dreamingforgold. Exactly. All needs to be proven. Roll on the EWT and appraisal.
From what I can tell 'artificial lift' is more or less standard for gas production. How long you can do that for and how much you need to make changes to that over time depends on the resource and geology.
I'm encouraged that the Rukwa region appears to have 1000's square ks of helium rich geology. Every time it has been drilled helium was found.
Darien. A few weeks ago I did some research into Avanti Helium. They had a find similar to ours at the same stage that we are at now. Thy managed to increase flow b c.40x following the path of EWT and appraisal. Now they are close to going into production with 2 wells.
It has taken Avanti about 2 years.
Anyway.... the initial flow rate is not and isnt meant to be a final indicator of the the potential. HE1's 4.7% is far higher than Avanti. The initial flow rate for HE1 is based on just one well with no artificial lift. The resource potential is likely massive.
RJ. Spot on. They will have to do the appraisal well at Itumbula. Whether they see the funding package for EWT and appraisal as one package or go just for EWT first is to be seen but in my mind I want to see an RNS confirming they are going for both in Q3 and tell us how they fund it - and if it's a raise they tell us it's done.
They must be quite confident about what they will be telling us about the reserve estimate for Itumbula but I don't like going back to Tai3 until they have proven the resource at Itumbula.
Crusty. I agree it feels like a risk to hire the rig out but then if I think about the risk of it not being used and left idle. Drilling is the only way to really understand the condition of the rig so then it might not be a bad thing at all especially if hiring it out more than covers its upkeep.
Crusty. Nobles funding is in AUS dollars. Its more like £8m
Dreamingforgold - where did you get 14mn from?
I believe they made the terms 'hot stacked' up. Basically they mean it's ready to drill when they need it or someone else pays for it.
Castlepaul. October is in Q4? No?
Q3 is July through September inclusive.
Bill. With the greatest respect I call out a number of strategies and don't refer to 'all' AIM investors in my post. Clearly a lot of the posting on this site is quite stupid regardless of what strategy they have and not grown up. If a strategy is - I want news now and It's not fair - then I think I'm spot on.
OMG. I despair at the stupidity. They have told us the next significant action will be Q3. The SP is down because AIM investors don't like waiting. Grown up AIM investors should assume funds will be raised and manage risk accordingly.
It's a massive helium find. Either wait it out, take some or all of your money out, average down, go elsewhere - your choice. But don't expect the company to tell lies to keep the SP up.
We will get news about the size of the find and plans for Q3 soon. But likely not immediately. It's really not long since the last news and to be frank punters need to be more realistic about how long stuff takes to happen in the real world.
It just looks to me like what we were starting to see last week. Less volume and less volatility. There were occasions last week when the spread tightened up for a while.
I think you can put this down to the start of the Easter holidays.... I would be thrilled to see get a placing for the EWT out the way if that's was needs to happen mind. If there is forward selling then it aint much compared to previous rounds.
Roger. What do you see that was odd today?
Fastest filter decision I ever had to make.
I'm absolutely certain that YOU have been manipulated.