RE: Gas world8 Feb 2022 15:33
I too seriously doubt that any sort of JV is on the cards, and I simply cannot understand where all this talk has come from.
Whilst He1 could never develop any large scale resource on their own, at present all they have is a load of licences, a lot of hope and have barely scratched the surface in terms of drilling or seismic.
It would be a brave, nay foolhardy, oil executive who put their pen to paper offering gazillions to explore and develop what is after all virgin territory. A potential career breaker rather than career maker, if you look at it objectively.
And as for He1 it would really be a desperate move - for the future it would be the money that did all the talking, DM & Co would be sidelined, and DM would forever be the "nearly man" - the man who nearly discovered the Rukwa Helium Reserves, but sold out too soon, leaving others to claim the glory.
A JV at present is in the interests of neither He1, DM nor a Major.
As He1 is presently in total control - what is in their interests?
Well, obviously, getting a helium discovery. They may have been close last year at Tai.
Tai is now much better understood than 12 months ago. 2 wells drilled, much better seismic, MSS + ERT survey etc, makes sense to stay here, as all the results appear to be good, but no definitive discovery, as yet. That Tai is frequently referenced in tweets and RNS's suggests that they will stay here, at least initially.
Money is tight as always, £8.7M at 31-10-2021, possibly a bit less now, but enough provided they don't undertake a major deep drill campaign to 2,500M.
The November 2021 presentation (less than three months ago, originally referenced 19-10-2021) ) appeared to lay out a clear roadmap. One slide devoted to deeper drilling in Q3/Q4 2022 and one slide devoted to shallow drilling under 400M Q1/Q2 2022.
The shallow drill slide on p14 stated
(Point 4) - Remote Sensing to id surface seepage Q4 2021, well we got that with the MSS survey results on 17-1-2022
(Point 5) - ERT/MT survey to id gas filled reservoirs near surface Q4/Q1 2022 - well that commenced on 7-2-2022
And (Point 6)...
Target drilling with lightweight rig Q1/Q2 2022.
It seems to me they are simply following what they stated in the November 2022 Presentation and there is no mystery over what the next move will be - lightweight rig for shallow targets- it is all there.
This would hopefully make a shallow discovery, proving up the concept for deeper drilling, and allowing a fundraising at a multiple of today's share price.
Only when there have been several deep drill discoveries would I suspect it to be appropriate to consider any sort of JV.
Negotiate from strength, and DM will also always be known as the man who did discover the Rukwa Helium Reserves.