Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
Third slide should be this one
https://www.flickr.com/photos/194934344@N06/53294530511/in/dateposted-public/
Onsolidground, will these do? A bit old and posted before but maybe of interest to newbies...
Noble, He1, Kidunda licences and wells
https://www.flickr.com/photos/194934344@N06/53207672875/in/dateposted-public/
Overview of the fault system and Nobles licences, wells drilled etc
https://www.flickr.com/photos/194934344@N06/53309673949/in/dateposted-public/
Fault systems and the relationship to the Rungwe Volcanoes, the theorised source of the heat to release the helium from the source rock, showing the faults running directly from the volcanoes into He1's licence area
https://www.flickr.com/photos/194934344@N06/53207672875/in/dateposted-public/
Theorised route of the helium
https://www.flickr.com/photos/194934344@N06/53291973974/in/dateposted-public/
A brief overview of licence swapping, somewhat out of date already.....
https://www.flickr.com/photos/194934344@N06/53312737487/in/dateposted-public/
This sort of cooperation/swapping would never be admitted to by any of the parties involved.
Itumbula W is important, but it isn't the only show in town.
If anything it is something of a sideshow, but has been an important proof of concept.
But it proved a number of things to the market and investors,
a) that gaseous helium can be extracted in high concentrations, 4.7% is a world beater. No news as yet on quantity, no doubt that will come.
b) the rig has been proved to work without issue, this is really important. More importantly He1 has proved that it is able to drill a well without issue, that it has the technical capacity to do so. Out of the 3 major wells Tai-1/1A, Tai-3 and Itumbula W this is the first well, not only to be completed successfully but also to achieve a result.
c) He1 has now raised a number of times in recent months, proving financial capacity. to long term holders the prices are very disappointing, 6p, .25p, now 1.5p, but the important matter is that they can raise.
They have now raised £4.7M. Serendipity that the amount raised is the same figure as the helium concentration - maybe.
They say it is vaguely allows for "sufficient working capital to progress its planning for the next stage of the work programme in Tanzania"
No mention of what or where.
I suspect that most of it will not be spent at Rukwa, £4.7M isn't enough really for even one well, suspect it is for staged payments of some sort, and there will be another fun ding round at much higher prices once the drilling season starts around May 2024, following CPR, and maybe Rukwa farm out/JV etc etc.
I mentioned earlier today that the licence situation had changed significantly over the last few months around Rukwa. there is quite a bit of fresh licence area now potentially up for grabs.
But the licence area has also changed at Eyasi.
This is what He1 would have us believe is the Eyasi prospect - 3 licences covering around 800sq km.
https://www.helium-one.com/projects/eyasi-project/
The Tz government portal however reveals that He1 has actually applied and been approved for another 9 licences, with another recently vacated by a third party covering around an additional 2500sq km. the applications commenced on the day LB became CEO. This has never been RNS'd but was admitted at the AGM.
https://www.flickr.com/photos/194934344@N06/53315420152/in/dateposted-public/
These applications are important as He1 entered into a JV with the Tz government on 13th October 2023, again never RNS'd.
https://www.reddit.com/r/HeliumOne/comments/17a1ac0/just_an_fyi_the_government_of_tanzania_through/
Eyasi is important as it potentially holds large amounts of oil and gas, as well as helium, and the Tz government has been trying and failing to get the project off the ground for around the last 20 years
https://www.thecitizen.co.tz/tanzania/news/national/tanzania-to-strike-huge-oil-deposits-in-wembere-eyasi-basin-3869452
Continued...
Part 2
continued...
The Eyasi project is the reason for the formation of the new company East Africa Holdings Limited, created the same day 20th November 2023 as the results from Tai-3 came in, presumably the results there were sufficiently good to trigger some sort of milestone with the Tz government, allowing the company to be set up
https://www.flickr.com/photos/194934344@N06/53508216124/in/dateposted-public/
The result from Itumbula is important as it satisfies the conditions for the Strategic Partnership with the Tz government over Eyasi moving forwards
The conditions come from this 2019 presentation by the Tz government at the Geological Society in London
https://www.flickr.com/photos/194934344@N06/53340551497/in/dateposted-public/
Itumbula proved that He1 has
1. Recognised capacity - they own a rig (unusual for a small explorer)
2. Technical knowledge - well successfully drilled, and find confirmed
3. Financial Capability - two fundraises in quick succession
This is from the same presentation
https://www.flickr.com/photos/194934344@N06/53336848112/in/dateposted-public/
The geophysics and drilling (to 300M) were carried out in 2019, the 2D by PURA over summer 2023, and the strategic partnership with He1 inked, but not RNS'd in October 2023.
This is how the He1 approved licence area interacts with the oil/gas licences and the area surveyed in 2D last summer.
https://www.flickr.com/photos/194934344@N06/53315769617/in/dateposted-public/
Rukwa Helium (T) Ltd gave up its licence a few months ago, and if He1 applied for that it would have a clear run across the whole of the Eyasi basin.
It is this prospect which is where the real value lies I believe, and Rukwa, whilst important is just a side show, proof of concept if you like.
The licence applications here, the purchase of the rig, the JV with the government, setting up of a new company and the hasty recent fundraise, even before a new CPR, all ties in with advancing this prospect, I believe, and that is where the real value lies, producing oil gas and helium from Eyasi.
Much news to come in the next few months, Eyasi, CPR for Itumbula, JV or farm out and then further raises at higher prices and an extensive drill campaign at Eyasi.
All IMHO, DYOR etc etc.
Suspect that there is a balancing buy to come in later...
I haven't posted on here for quite a while, I was flummoxed by the fall to 0.19p and at one time was sitting on a 98% loss.
A little bit of dealing has recovered the situation somewhat, so possibly onwards and upwards.
The recent raise of £4.7M seems unduly hasty, given that no doubt further results, CPR etc are expected, and these should be good, given the presence of free flowing gaseous helium and hydrogen. They could have raised more presumably at a better price, but perhaps time is not on their side.
Those who followed by previous posts know that I expect that Rukwa will be abandoned in 2024 and He1 will look to move to Eyasi in 2024 becoming a strategic partner with the Tanzanian government looking for oil/gas and helium around the Eyasi Lake area.
I suspect that the Itumbula prospect will be subject to some sort of farm out deal, allowing He1 to concentrate its day to day resources on Eyasi.
To who will it be farmed out?
Well there is another outfit just to the east of us, Kidunda Ltd which is now owned by the original owners of He1. Itumbula W wasn't only a test of our prospect but also of theirs, but they didn't have to pay for it. Their licence is only around 4.5km from Itumbula W , and could be the best prospect in the whole of the Rukwa Valley, here -
https://www.flickr.com/photos/194934344@N06/53514833844/in/dateposted-public/
Our prospects are in turquoise, theirs in purple.
Kidunda is due to list on the ASE in due course via D3 Energy. He1 also "accidentally" shot around 4km of 2D seismic over their licence area in 2022, helpful that.
Interestingly Kidunda also issued new shares for an investment by new investors just as He1 was awaiting results of the Tai-3 well, almost as if someone knew that they would be a decent prospect.
On the same date He1 created a new company East Africa Holdings Limited, which they subsequently admitted at the AGM was to deal with the Eyasi prospect.
https://www.flickr.com/photos/194934344@N06/53508216124/in/dateposted-public/
The rush to raise is interesting, and the licence map of Rukwa may give a clue as to what is going on. This is a comparison of the map in November 2023 with today -
https://www.flickr.com/photos/194934344@N06/53513585597/in/dateposted-public/
Other players have given up large areas of helium licences in the last few months, especially HRV, and Noble, so there are large areas of licences now open to new bidders.
Something similar has taken place at Eyasi, but not on the same scale, as Rukwa Helium (T) Ltd has given up its licence, and if He1 were now to bid for that would given them a clear run across the whole of the Eyasi Valley, with their 3 awarded licences and the 9 pending (secret) applications.
https://www.flickr.com/photos/194934344@N06/53315420152/in/dateposted-public/
https://www.flickr.com/photos/194934344@N06/53315769617/in/dateposted-public/
Much news to come here, given a little patience.
Someone has done a reasoned calculation on another (rival) site suggesting that PRIM could get around £3.75M from the deal. Others suggest more.
It is about time this rerated.
It is unfortunate that it is the legacy investments that appear to be doing well. The previous management clearly knew their stuff, but greed in terms of remuneration was their downfall, and hubris in thinking that they only needed to own a relatively small part of the company left them vulnerable.
Yes, looks like someone has accumulated another 500K.
Resolutions look like progress, unlikely we'll have to wait 10 days to see the detail.
There were similar resolutions around a year ago, but they look to have changed the memorandum and articles, so we'll see.
Presumably Mr Ball is sufficiently confident in his calculations to put around £750K into this.
We will never truly know what has gone on but it is mismanagement of the rig which has sunk the company.
I suspect DM, IS and one other didn't want the rig bought, the others did, so as to propel the company to oil and gas and helium at Eyasi and a strategic partnership with the government.
They all went before the you know what hit the fan, IS sold out, they knew what was coming.
It is the present directors who have let us down, wanting the big time, instead we are on life support, but for how long?
JH, note 15 in the accounts -
" Included within cash and cash equivalents of $9.6 million, was a sum of approximately $2.1 million held in escrow at 30 June 2023 in contemplation of the completion of a sale and purchase transaction which was non-binding at the Balance Sheet date. Subsequent to 30 June 2023, the transaction was completed and the funds utilised."
The rig had a written down value of $1.81M in the Cluff accounts.
So this can only refer to the rig, IMHO.
Of course the rig has cost us much more in repairs and downtime, and ultimately may have actually sunk the company.
Someone suggested that may be why DM actually went, Cluff put it on their website as available on 7-2-2023, DM went on 8-2-2023. Of course it is also all tied up with the Eyasi buiiness as well, and us trying to punch above our weight by becoming a strategic partner with the Tz government using the rig as leverage.
But part of the Eyasi deal is that we also need to have "financial capability" and I think that now there is precious little of that available.
All very quick, not much time.
Still haven't seen the AGM, so flying a bit blind, but Sentinel tells me...
Weather is balmy, today we actually get the best view for quite a while, it has rained, but tales of torrential rain precluding drilling in December were greatly exaggerated, still quite dry in places, our part of Rukwa, if you look very closely you can see Tai-3 and the Itumbula pads -
https://www.flickr.com/photos/194934344@N06/53404359099/in/dateposted-public/
Itumbula general arrangement -
https://www.flickr.com/photos/194934344@N06/53404037391/in/dateposted-public/
Itumbula-2 (West) clearly much movement on the pad over the last 5 days, the cellar still appears at least partly exposed suggesting that it is not as yet actually fully erected on the pad. But it is there, it would appear, along with all the associated equipment. There looks like something on the roadway leading to the pad so some equipment may still be arriving.
https://www.flickr.com/photos/194934344@N06/53404358159/in/dateposted-public/
Tai-3 appears all but abandoned, may be used for storage of pipes etc, but not much else.
https://www.flickr.com/photos/194934344@N06/53404474375/in/dateposted-public/
My view would be that anyone who thinks we are going back there anytime soon is mistaken. Time will not allow it in any event, if we are to do Eyasi for oil/gas/helium in 2024.
But we are between a rock and a hard place. From the bit I have been able to read I think the Board are also mystified and mesmerised by the price collapse. They need to stop thinking about things subject to ratification, and tell us their concrete plans if they were able to raise sufficient funds. They obviously have such plans, and they are to be seen at Companies House, the Tz govt portal and the Tz government Linkedin pages. No secrets there, so tell us and the markets Lorna, before it is too late.
I doubt if the Tz government will be interested unless we are able to put in more than just a rig.
And the new company is UK based, no BVI nonsense there. UK courts and UK law, it is for a reason.
Noble Mbelele-2 15-12-2023, for those interested, rig is also probably still there, along with much equipment.
https://www.flickr.com/photos/194934344@N06/53404046216/in/dateposted-public/
Just quickly, before it gets buried tomorrow.
The Rukwa licensing map appears to have changed.
Noble look to have withdraw applications for at least 4 licences.
Contrast from yesterday
https://flic.kr/p/2pmpACp
With the earlier map
https://flic.kr/p/2pe8dGq
Helium Rift Valley Limited also appears to have given up vast swathes of licences, going from 55 applications/approvals to 12.
Our licences remain the same at 18 issued and 9 secret Eyasi applications/approvals.
Prompted by drill results?
Either people aren't so bothered anymore or the Tz government wants action. HRVL had sat on their licences doing nothing for 6 years.
Large areas of Tanzania with helium potential are now suddenly unlicensed.
Value destruction on an epic scale.
Will be 90% down over 6 months, and for what?
None of this shower should ever be allowed near another company.
But they'll just shuffle off into other directorships but I bet He1 will never appear on their CV's.