Please check my assumptions and maths20 Jan 2026 14:34
I already have a holding here and am considering topping up, encouraged by the recent RNS re confirmed Helium3 levels. However after doing the following exercise and taking info from the company's latest presentation, Im not at all sure.
Flow from Well 1 during 7 day test was 20Mcf per day. Say 5% of which helium4 thats 10,000 cu ft per day, or 283 cu m per day, or 0.05 tonnes per day, or 18 tonnes per year. At 100k US dollars per tonne thats 1.8 million per well and, with a leap of faith, at least 5 wells doing the same.
Im now thinking the Helium3 is a bit of a misnomer. OK its 18.7 billion dollars per tonne but 11 parts per billion at 200Mcf/d is only 0.0022 cu ft per day, 0.803 cu ft per year or 0.2 cu m per year or $67,000 p.a.
So by my reckoning the Helium 4 is more lucrative and maybe the CO2 and Nitrogen also.
Company has 187.4m diluted shares and a market cap of CAD $188.5m. Share price 1.1 dollar canadian.
Hopefully I wont get shot down like when Sheldon sends his paper to Steven Hawking...anyway even if figures are wrong I would be interested in the musings of the wiser ones.