RE: Taj1 f revisited24 Nov 2023 14:40
Oh dear!! Someone losing money on a share?
Novelty.
Anyway.
My rationale for holding He1 - FWIW, DYOR, IMHO - this is high risk, high reward.
There is a real possibility of total failure of the project - some might say probability - the company is drilling in virgin territory for a pure helium source, something which hasn't been done before anywhere. They've raised circa £50m over the last several years, now worth c£25M.
If they find the gas big success. If not, well...
I still think my Eyasi '24 - oil/gas/helium JV with MOM/PURA/TPDC theory is in with a chance, and that is part of my rationale for remaining invested, apart from the chance/possibility of a discovery at Tai/Itumbula.
Theory has already been aired at length on 18-11-2023, so ago so won't go into the whole thing here.
No one pointed out the possible major defect with the theory - that I was conflating the "Strategic Partnership" referred to in the February 2019 Tz Government Eyasi-Wembere presentation with the "Cooperation and Joint Development" Agreement to develop Eyasi-Wembere signed by He1 and MOM/PURA/TPDC on 13th October 2023.
But they sound pretty similar to me.
But what intrigues me and makes me believe it might be a go-er is that He1 have never said
a) they've applied for 2000sq km of new licences at Eyasi and been approved (almost doubling the licence area),
b) done a deal with the Tz government to look for oil and gas at Eyasi
both of which we know to be true.
It also fits in with buying the rig (why, it isn't ever going to be a second revenue source unless you want to risk bankruptcy?) , DM's departure, and I believe now, haste to get on with drilling at Itumbula/Tai in December and January 23/4.
Of course getting a discovery at I/T would boost the shares allowing decent funds to be raised and I'd say was really essential to getting the Eyasi project off the ground.
But what if they couldn't get that discovery? Could they raise just on the back of a JV with the Tz Govt and oil/gas/helium at Eyasi? Might be a hard sell. But we would put in the rig, can't see the Tz Govt putting in a load of cash, but maybe they would put something in/pay for services?
But who would be taking the bigger risk, us or them, or is the "secret" Eyasi deal a desperate move by the Tz Govt or a big vote of confidence in He1?
Tai results were disappointing, but maybe the Tz Govt also thinks the helium is there.
Maybe.
Eyasi '24 - it won't wait.
Sign In
Follow the stocks
