Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
It’s just one well and the first for this target and without pumping. Would be useful to understand what difference pumping or other approaches can do to the flow rate. I think most of us expected flow,test and appraisal would be required.
It’s good. Not for the impatient. Can’t announce discovery without further work which is expected.
Air Liquide is a massive multinational with many products, partner and thousands of employees across many countries and a 100bn Euro market cap. So no, not unless HE1 wants to do a lot more than just produce helium in Africa.
However.... would a partnership or even a buy out of HE1 with a commercial helium find work for a company like Air Liquide? You could see it in the right circumstances. Find it and they will come.
... and this is why I think HE1 will emerge with a JV to pilot a production method at Itumbula. Perhaps they can collect the free gas as it exsolves from the liquid at lower pressures and also process the liquid. Who knows. Patience, patience.
Yes the hydrogen complicates the picture and it is another 'nice problem to have'. You could see the hydrogen in production before the helium. Helium is 4 times heavier than hydrogen..... it matters. It's all very exciting.
JerseyCrew. Yes I think so. But not clear without more data. People are talking about 'flowing gas' (which I absolutely believe was observed) but they also need to consider flowing liquids. Both are active parameters to consider. Both can be flowing naturally or require stimulation.
If the primary source of the gas is a liquid at depth then you would need to find a way to circulate it in order for it to a) release the gas as it is released under reduced pressure - I believe this is what HE1 have experienced happening in the Itumbula well. b) directly remove gas from the liquid.... I think b is the challenge that noble were talking about.
All speculation at this stage but there is science and engineering to do. This is why we haven't had the commercial discovery RNS because they would need to quantify and that's hard without doing the legwork. Ignore those who say they haven't released the flow data because it doesnt flow. How much it flows and for what size reserve etc etc is not easy without a standard model to plug the data into. It's a 'nice problem to have' rather than a bad one which would be no helium. 4.7% was a big number and mitigates the risk of making it commercial a lot but it doesnt mean there are no engineering challenges to solve before you can sell the gas to the market.
Need more data and that means we wait.
You can lead a horse to water but you can't make it ........ think!
Let me tell you anyway. It's about £50k
So is that an indication of lots of punters selling up from HE1. Let me help again - it isnt. Oh and by the way the difference will get sold on to new owners because that's how the market works.
Now go try to understand harder.
Waitaminute - Lets try to understand what you are trying so hard to tell us. You suggest that people are leaving HE1. OK so let's try to quantify that....
What is the cash value of the difference between buys and sells so far today. Go on have a go at that.
Panic time?
I prefer transformation and globally significant resource.
Is Waitaminute seriously telling me that there is an accurate way to show what trades are buys and which are sells?
Bornaminute
So wait or not. Your choice. I really don't see any evidence of people selling and moving on. The SP looks very well supported at this level.
Joe - you say that if they had said it was a 'good flow' it would be better. However you can use other language to indicate that the well is productive. Why use these words in the RNS if it isnt a good flow:
'Flowing helium to surface in such high concentrations is a huge milestone for the Company and we will now fully evaluate these results and focus on advancing this project in the most effective way possible; one that will aim to achieve commerciality at the earliest opportunity.'
OK so we could say we don't believe that they have a commercial find because they haven't disclosed the flow rate - but they have stated they aim to achieve commerciality at the earliest opportunity. That's a very positive mention no? Commerciality of what?
Clearly a lot of us are not going to agree until we get more data.
Deltalo. I think you are probably right in terms of where we will end up with HE1. It is a huge find and hence the CEO using language like 'transformational' and 'global significance'. It must be frustrating for them too to not be able to articulate this clearly but ultimately you can't RNS and just say - its blummin masses of helium - because at the end of the day they will have to state facts about reserves and flow rates in a precise manner. It will come. Exciting times for the patient.
You could imagine that the helium can be continuously released from a fluid source just because it becomes depressurised. It doesnt mean that all of the helium is released when the fluid is at surface. This is really important. This is like opening a can of coke - there is an immediate release of gas but it doesnt all release. What HE1 may have found is the can of coke. Noble may have the already open can of coke. i.e. you need to do more to get more gas out of the flat coke.
What HE1 have tested and what Noble have tested may not be the same thing as the process of the gas exsolving from fluid will vary in quantity depending on the pressures the fluid is under under in different circumstances. Hence it's hard to model with certainty without a lot of data crunching.
Once the gas is released from solution it is free gas. Anything else is just semantics. The important bit is whether the amount of free gas is commercial and or can the gas in solution also be freed and become commercial. If the Itumbula system delivers a consistent flow of gas being released from depressurising solution then that alone could be commercial.
Point is that HE1 made it very clear that the gas was released from the fluid as it depressurises as it rises up the well bore.
I think we can all agree that we need to see flow/pressure/size of resource/whatever data.
I suggest people re watch the interview to understand why they haven't disclosed that level of uncertainty yet. You can decide if you trust the CEO or not.
The rather semantic stuff about what 'flowing freely' or not means won't matter when we get a better view of the data and what it means.
Joe. You have been telling us that the gas did not flow to surface. It did. During the interview this is very clear on several occasions. The uniqueness of the find is down to the geological anomaly for which there is not existing model so they need to create a new one.
As I posted earlier - I agree with you that we need to see the flow rate and pressure details. LB says they have that in the interview and then explains how it's not as straight forward as releasing that data. they need to interpret the data further first.
'opportunity for transformational growth over a period of time'
It was worth me watching the interview again. So posters are being very selective in how they interpret this (perhaps deliberately in some cases).
IMHO the potential is huge here. They have pressure and flow data but it needs interpretation because it is not a traditional helium play. Listen yourselves to understand that.
So the interview. 3:36 mins. 'seeing the helium coming out of solution and flowing to surface'.
Regardless of whether the helium is in the ground is in solution or not it is being released from the solution and 'flowing' to surface from the itumbula well - as helium gas..
FLOWING.
Joe does have a point on the flow. They did experience 'the flow' during testing and I want to know more about that. I'm very happy to wait for more data but they say they lined and sealed the well so whatever they experienced can ultimately be assessed and disclosed.