A reminder of why we are here and what is to come...3 Sep 2024 12:16
The current focus on helium stocks, particularly those of GEX and HEX, highlights the significance of the high-grade helium deposits being targeted by MSMN at the Vecta Helium Project in Las Animas, USA. Notably, any helium discovery over 0.5% is considered commercially viable, yet MSMN is aiming for grades of 7-11%.
For instance, the nearby Model Dome and Cynthia True wells have proven helium grades of 8% and 8.8% respectively. Furthermore, MSMN's Treasure Hill drill site is in close proximity to Blue Star Helium's 8.8% Voyager discovery, suggesting MSMN could be sitting on a substantial helium resource.
Based on Blue Star Helium's reported 13.4 BCF of helium across their ~200,000-acre acreage, valued at $500 per MCF, the in-situ value amounts to approximately $6.7 billion. As the Vecta Helium Project covers around 25% of this acreage, the potential in-situ value to MSMN (with a 20% stake) could be as high as $335 million (£260 million), significantly exceeding MSMN's current market capitalization of £8 million, implying an upside of over 2800%.
It's worth noting that the Vecta Helium Project is just one of three fully funded helium projects in MSMN's portfolio. The company also has interests in the EP145 (25% free carry) and EP155 (25% free carry through seismic or 10% through drilling) projects in the Amadeus Basin, Australia, which have an estimated in-situ helium value of approximately $10.7 billion to MSMN.
With a 5-well drilling plan scheduled for the fourth quarter of this year, any positive news on this front could result in a significant revaluation of MSMN's market capitalization from the current £8 million. Investors are advised to conduct their own due diligence, particularly regarding the $1 million Stanley payment on September 3rd, which will provide the final funding for the 5-well drilling campaign.