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Worth noting that we already know the well flows gas and helium - that was confirmed via 2 short heavily mud damaged DSTs when it was drilled in the 90s.

They are currently testing the Lower Leadville as updated via social media - this hasn't been tested at Sagebrush previously, but if you want to see what the Lower Leadville flowed in a nearby well only 5 miles away (Coyote Wash #30-12), under similar 2-hour mud damaged DSTs, here's the density well logs with the flows mapped from the two zones tested by Halliburton at the time:

https://x.com/StallardMichael/status/2046515058868461965?s=20

https://x.com/StallardMichael/status/2046515056410591639?s=20

These zones in Coyote Wash 30-12 both flowed a combined 408 mcf/d over those very short tests - which as mentioned didn't allow the well to clean properly given the heavy mud that was pumped down there. There's always a risk (this is O&G), but no reason not to expect something similar in the Lower Leadville at Sagebrush-1, especially as the density log shows similar gas columns as you can see from my analysis in the posts above (which Howard also referenced in an interview saying the 3D in the Lower Leadville looks excellent).

The whole point of this extended well test is to allow the zones to flow for a prolonged period of time, to give them time to clean up properly (nudged along by an acid stimulation I may add - read my other X posts if you want to see the impact this can have https://x.com/StallardMichael/status/2027017414781575314?s=20).

If Coyote Wash #30-12 can produce 400+ mcf/d under poor conditions in just the Lower Leadville, imagine what these wells can produce if they are given time to clan and flow properly.

Just some analysis based on the data, as always not investment advice, DYOR.

What today's RNS confirms and how this translates to flow rates for the EWT:

https://x.com/StallardMichael/status/2029464687817928818?s=20

Full research on the EWT and how known reservoir characteristics, including net pay, porosity, structure size, along with modern completion using acid stimulation can have a huge impact on flow rates:

https://x.com/StallardMichael/status/2027017414781575314?s=20

As we’re nearing final approval for Sagebrush and commencement of the EWT, I’ve shared some detailed research into some of the figures we could expect to see during the upcoming EWT at Sagebrush – with both the TG group and on X below:

https://x.com/StallardMichael/status/2027017414781575314?s=20

I spent a lot of time digging into O&G wells and fields in the 4C region of the US, as well as looking at reservoir characteristics, formulas and so on – all with the aim of trying to get a better understanding of what we know about the Sagebrush structure and the potential flow rates that we could be seeing during the upcoming EWT on Sagebrush-1.

Everything I’ve shared is based on known data from historic well logs, DSTs, seismics and resource reports (all of which I’ve shared on X previously), which were then fed into the respective industry formulas and supported by analogue data from regional Leadville producers.

In my series of posts I’ve covered some of the following:

- Impact of mud damage on flow rates and what this means

- Power of acid stimulation, especially in the Leadville

- What the DST flow rates & pressure build up data is telling us

- Gauging reservoir characteristics such as size, net pay and porosity

- Examples of supporting analogue well data

- Tables showing potential flow rates and how this translates into revenue for QHE

Tim Rynott, who is the leading geologist in the 4 Corners region (also advising QHE), commented on one of my research posts last year about the potential he sees in the Coyote Wash project. I didn’t really comprehend his interpretations at the time, but now I’ve got my head around the data I can start to see why his 5,000-10,000 MCF/d estimates for Coyote Wash (and by adjacency Sagebrush) really are a possibility – my interpretations are conservative by comparison. I also understand why QHE CEO, Howard McLaughlin, was also hopeful of seeing 1,000+ MCF/d.

For those interested, it makes a compelling read – it really is an exciting time ahead for the company with the EWT having the potential to be an absolute game changer, that’s even before we consider the oil potential which the company will be targeting later this year. baffling to consider QHE is currently sat at an ~£11m market cap – especially considering it has one of the largest resource estimates compared to its helium peers.

This is well overdue a re-rate once final approvals are in and the EWT commences.

Hard to believe this is £11m mcap.

A reminder of what the oil potential means for #QHE. Here's my previously published research on the Sagebrush figures, with Coyote Wash sharing similar characteristics at 100% WI - targeting a low case of $11m annual gross revenue per well, with huge upside now they have the 3D to support target mapping. Even the best case figures could be conservative:

https://x.com/StallardMichael/status/2026945971280658722?s=20

Helium figures also shared in my previous tweet, with current 2U of $603m at $500/mcf:

https://x.com/stallardmichael/status/2026927729556304266?s=46

We won’t be able to answer that question until after the EWT. They currently have the helium grade (2.76%), but the EWT will determine the flow rates, which will provide the final set of data needed for the feasibility study.

This is why the BIA final approval is so important, and why the share price will fly one it’s in. The team are ready to go on the EWT, so it’s just a matter of time..

NCTrade - the company is active, its accounts are dormant as it doesn't handle regular transactions therefore doesn't have to file for audit purposes. As I've already stated these legal entities are created to manage these types of transactions. As per the statement released by Harlequin today, the family backed company with $9bn+ in assets is providing the funding. Harlequin is just a legal entity, part of the larger investment vehicle managing the transaction:

https://x.com/StallardMichael/status/1986858116109959494

"The required backing was provided by a Colorado based family office, with investments and assets under management of over nine billion dollars and who have been a long-term partner of Harlequin as a provider of long term committed capital. The backer is privately held and invests across the full spectrum of oil and gas, real estate and banking. They have executed numerous high value transactions with both public and private companies in the US, Canada, Western Europe and the Middle East."

I can only suggest people do their own research, it's all there - same goes for the nonsense spouted about placings, they literally just placed this week and the drill costs (which is a re-entry) are outlined in the prospectus, just take a read:

https://x.com/StallardMichael/status/1986849570177904729

GEX will no doubt lay all of this to bed in the next week or so, but the share price will be back in double digits at that point.

Exactly, and this say it all from today's press release:

"As the projects are developed, Harlequin will be responsible for the delivery of processing facilities, including separation units for helium and hydrogen. Once operational, Harlequin will be solely responsible for storage, transport, export of the produced gases.

This major milestone with GEX will enable the Parties to jointly develop the required next steps. On this basis, Harlequin have already engaged with one of the world leaders in oilfield services to start a paid study, which will focus on exploration reviews, drilling and completions, transportation of produced gases, development options and field economics."

https://x.com/StallardMichael/status/1986837949598912744

Ignore all the false statements about dormant companies, people clearly have an agenda.

All it takes is a bit of research and you'll see that HARLEQUIN ENERGY GROUP LTD changed its name to HALO CAPITAL INVESTMENTS LIMITED on 22 August this year (a week before the 28 August RNS confirming offtake agreement).

Yes, this is different to the company registered in today's news, HARLEQUIN ENERGY LIMITED, but investment vehicles operate multiple companies to allocate or distribute capital, manage legal and insurance requirements, and all sorts of things to mitigate risk. You can see this is similar to the pre-Halo name change and is all part of the same vehicle - look it up on companies house.

The important news today is that offtake vehicle is fully funded and backed by a high net worth family, with $US9bn in assets.

All post-drilling financing and development is now sorted pending commercial success - as written in the press released: "Alongside this relationship comes relationships with top tier banks who will also provide the required project finance and long-term debt needed to deliver the required infrastructure for the development of both Hussar and Mount Winter."

Over to GEX to confirm repairs and drill timelines now for Hussar - next week could be big if news is released! 📈

https://x.com/StallardMichael/status/1986832006005555419

Traders are out after the morning rise, starting to build nicely above 6p again!

https://x.com/StallardMichael/status/1983872125933912203tps://x.com/StallardMichael/status/1983872125933912203

With #Hussar well approval now confirmed with Australian government, GEX can begin mobilisation to site and start repair works. No more red tape and the drill for #Helium & #Hydrogen can finally begin. Hussar has a potential in-situ value of US$55bn of helium & hydrogen, and $5.24bn of natural gas.

https://x.com/StallardMichael/status/1983810975678480799

Mt Winter also ticking on in the background..

Everyone starts somewhere, just look at some of the big names at WebSummit.

https://x.com/StallardMichael/status/1983806967282851848

Several selections for startup programs, strong partnerships, networks & experienced founders - all recipes for success!

#GEX final permit approval now moved into determination stage following environmental plan sign off last week. This is the final piece of the puzzle that will allow GEX to commence #Helium #Hydrogen operations at #Hussar. Hussar has a potential in-situ value of US$55bn of helium and hydrogen, and US$5.24bn of natural gas (Georgina's current market cap: £6m).

https://x.com/StallardMichael/status/1983453191649014227

MOU agreement between Halo & Penspen secures the offtake process, not long to wait before full approval granted and drilling begins

https://x.com/StallardMichael/status/1981293193044898292

Just for clarity for those unaware of what today's approval means.. the environmental plan was the last piece of the puzzle, all obligations & approvals now done for the final drill approval, per July RNS - this means the team can get back on site to begin their work:

https://x.com/StallardMichael/status/1980931062764331433

Hussar Environmental Plan finally approved, RNS shortly from company to confirm mobilisation to site to begin repair works and drill the Hussar well!

https://x.com/StallardMichael/status/1980910099049992512

.. until we get confirmation of farm-in/investment partners, offtake gas agreements, contract agreement for use of adjacent Dominion pipeline, further acreage acquisitions.

https://x.com/StallardMichael/status/1980708015444750614

The share price is only heading one way soon, the hard graft has been done.. near term proven asset value is almost double the current market cap and doesn't account for any upside whatsoever - currently based on 1/2 the acreage and doesn't factor in potential from the 8 overlying reservoirs. Oil may be having a blip, but gas is on the up..

https://x.com/StallardMichael/status/1979834908232065529

The interesting thing here is that it confirms Sure Valley Ventures (SVV) are invested in Alludium through CTAI. For those unaware, some of Alludium's founders are partners at SVV, so you basically have in-house SVV experts (and oh my are they experts in AI, go read their successes) building a tool with access to this huge network of capital and global contacts. Paired alongside their partnerships with NVIDIA, Microsoft, AWS, Atlassian, etc. they really do have all of the expertise and connections to build something special here.

SVV have also sold some of their AI products for hundreds of millions - see Landvault as an example, which sold for $450m to Infinite Reality.

I've shared some of this in my posts below:

https://x.com/StallardMichael/status/1978738556144160862

https://x.com/StallardMichael/status/1978443338786209796

Following the independent resource report from Sproule on their #Sagebrush project, I’ve done some research into #MSMN's adjacent #CoyoteWash project, for those interested in a read. Using the report's estimates, I've mapped the nearby Coyote Wash sub-surface data & lease areas provided by MSMN to estimate the resource potential - which based on a #Helium price of $300/mcf (very conservative), has potential for increased 2U resources of $350m (or 3U of $700m), with greater upside extending to $575m-$1.15bn at a less conservative $500/mcf. This is quite significant given it’s currently sub £10m mcap.

https://x.com/stallardmichael/status/1975900875203006628?s=46

My research is by no means an exact science, they will still need to drill at the Coyote project, however it shares the same geology as Sagebrush and are in immediate proximity. The first marker will be the upcoming extended well test (EWT) planned later this month at the Sagebrush-1 well. Commercial helium at 2.76% has already been identified in the sub-salt of this well (hence the report), however this was based on short DST data in a mud-damaged formation - the well was drilled in 1993 so the focus was on oil production from the higher Ismay formation, so the sub-salt was only tested for a few hours before being plugged.

The purpose of the EWT will be to go back into the sub-salt Leadville formation to clear the mud-damage with acidisation and test the gas formation properly. As the CEO has stated, when they purchased this project they essentially received a $4m well for free - no need for the drilling expense, it only requires a workover rig to begin testing. It makes for a compelling investment opportunity if successful - usual risks do apply, however the re-entry has been substantially de-risked as a result of the confirmed Helium presence.

For those who may have missed it, #MSMN also recently made the news in the ‘This is Money’ article below, for those interested in a read to understand more:

https://www.thisismoney.co.uk/money/markets/article-15166973/SMALL-CAP-IDEA-Mosman-hails-significant-milestone-helium-tilt.html

Hope you find the research interesting and also happy to answer any questions.

Nice to see the new rig up at RCE, expect production to ramp up quickly from here. People seemed to have forgotten that AXL reported 4,500+ BOPD in their early April update, overshadowed by the Q1 results (which was only to the end of March).

https://x.com/StallardMichael/status/1930666678846652893

And it's quite easy to read between the lines if you know the area and operators very well..

https://x.com/StallardMichael/status/1924777441827909748

He1 & Blue Star have their own issues and don't have the CAPEX. The only local "helium business" with any insight into this operation is Desert Eagle. They have the revenue from their successful ops just 16km away, able to fast track to production (as stated by Andy in the RNS), and are involved in this drill through their drilling arm, Desert Eagle Drilling (DED). They won't know the He % or full gas composition until lab results come back, but you can bet your bottom dollar they have seen a promising gas column and pressure at TD on this drill. That's enough for them to commit. Whether the He % is there or not, the 2nd largest gas in the system is clean CO2, which can also be sold to the beverage industry. Either way, they've seen gas and know there's potential. This is excellent news, AND this is only 1 of MSMN/Vecta's 5 plays.